Breaking through the hydrogen cost barrier by using electrolysis loads to access ancillary services and demand response programs

This presentation described the use of hydrogen electrolysis as a load resource for handling grid instability resulting from the increased penetration of intermittent renewable power. In particular, it focused on Hydrogenics, the leading global supplier of industrial scale electrolysis equipment and fuel cells. The presentation included an overview of the current incentive and market value of ancillary services provided by the company and demand responses in a number of grids around the world. There is a link between the amount of ancillary services required by the grid and the penetration level of renewable energy power such as wind and solar. The ability of hydrogen generation from electrolysis to satisfy all the requirements of ancillary services markets was also demonstrated. The economic analysis of hydrogen generation was discussed with particular reference to the cost of hydrogen fully loading all capital, energy and operating costs. The resulting reduction in the cost of hydrogen was compared to the existing markets for hydrogen, including use of hydrogen as a fuel for municipal bus fleets relative to the existing cost of fossil fuel fleets. Current industrial hydrogen merchant and bulk market prices were also compared