Element Energy

Project Case Studies

CCUS and Industrial Decarbonisation

Hy-Impact Series Hydrogen in the UK, from technical to economic, for Equinor (2019)

The 4 ‘Hy-Impact’ studies explore the technical and economic impacts of deploying hydrogen and CCS technologies in the UK, and outline the opportunity for hydrogen in the UK net-zero transition. Blue hydrogen is capable of decarbonising industry, heat, transport and power.

The studies assess aspects from job creation to emissions reduction, and hydrogen production to its end-use, including complementing renewables in the power sector. The studies were carried out for Equinor, a long-term energy investor in the UK in a broad range of areas and also the country’s largest supplier of natural gas.

The studies aimed to answer a number of remaining questions around hydrogen deployment in the UK and concluded that:

  • Hydrogen and CCS deployment could enable over 200,000 jobs and could add £18 billion to the UK economy in 2050.
  • There is sufficient bioenergy to enable large-scale net-negative hydrogen production in the UK, through blending of biomethane into the reformer feedstock.
  • Hydrogen and CCS power technologies can cost-effectively replace planned nuclear and unabated gas power plants, while reducing electricity grid carbon intensity by 24%.
  • The Yorkshire and Humber region could represent an opportunity for development of an early hydrogen economy.

 
Overview of the benefits unlocked by hydrogen under three scenarios:


Hydrogen supply chain modelling tool, for BEIS (2018)

Element Energy developed a hydrogen system model which projects the cost of an evolving hydrogen network in the UK to 2050. The project involved gathering an extensive engineering dataset on the cost and performance of technologies across the whole hydrogen supply chain, including hydrogen production, transmission, CCS, storage, end-use. The study also assessed the synergies with other aspects of the system.


Policy Mechanisms to support the largescale deployment of Carbon Capture and Storage (CCS), for the Oil and Gas Climate Initiative (OGCI) (2017)

Key outcomes:

  • Reasons explaining why CCS has failed to build momentum, despite the central role that CCS plays in many deep decarbonisation trajectories.
  • Policy and market mechanisms that could stimulate investment across the stages of deployment.
  • Principles that could help governments and firms to collaborate.
  • Timeline and policy roadmap for the successful scale up and deployment of CCS, detailing the roles of government and business, and how policies may differ across regions globally.

Vicious cycle of inaction:

Overview of four policies chosen for further analysis:

Report: http://www.element-energy.co.uk/wordpress/wp-content/uploads/2018/05/Element-Energy-Vivid-Economics-Report-CCS-Market-Mechanisms.pdf

Press release: http://www.element-energy.co.uk/2018/05/carbon-capture-and-storage-ccs-is-necessary-for-a-2c-scenario-but-wont-work-without-public-private-collaboration/

 

Enabling global deployment of industrial CCS clusters, for the International Energy Agency

Key outcomes:

  • A number of viable business models including the commercial and economic arrangements needed to enable the deployment of industrial CCS clusters considering both common and region-specific issues
  • Assessment of expectations of key market players including industrial emitters, Governments, cluster developers, T&S operators, EOR operators, and investors (e.g. potential providers of equity and debt) based on in-depth interviews
  • Detailed cash-flow modelling of an illustrative industrial CCS cluster project including all major project partners based on various incentive, risk sharing and financing assumptions

Emitter cash-flow (Illustrative):

Business model diagram (Illustrative):

Emitter costs and revenues (Illustrative):