COPYRIGHT: HINICIO & LBST

J R C ∙ P t G ∙ W o r k s h o p

B r u s s e l s , 4 M a y 2 0 1 6

Hydrogen f rom

power-to-gas for

use in ref iner ies

P a t r i c k S c h m i d t

W e r n e r W e i n d o r f

L B S T ∙ M u n i c h

2

LBST

Regulatory

Hydrogen in refineries

Conclusions

Contents

Sole reference for information is the final report

LBST

Independent expert for sustainable energy and mobility for over 30 years

Bridging technology, markets, and policy

Renewable energies, fuels, infrastructure

Technology-based strategy

consulting,

System and technology studies,

Sustainability assessment

Global and long term

perspective

Rigorous system approach –

thinking outside the box

Serving international clients

in industry, finance, politics, and

NGOs

3

Sole reference for information is the final report

There is increasing interest in Germany from refiner’s side

Criteria EU

Fuel Quality Directive (FQD)

France

Code de l‘énergie

Germany

BImSchG/V

Lifetime 2020 2020 2020

GHG targets

-2 % by 2015

-4 % by 2017

-6 % by 2020

-10 % by 2020

-3.5 % by 2015

-4 % by 2017

-6 % by 2020

Responsibility Supplier Energy tax responsible

entity (usually the refinery)

Energy tax responsible

entity (usually the refinery)

Options

upstream: Flaring/venting

Flaring/venting –

refinery: – Refinery GHG emissions

reduction –

downstream: Biofuels and alternative

fuels from non-biological

sources

Biofuels, electricity Biofuels

Hydrogen

H2 eligible as transportation

fuel (2015/652/EU, ANNEX I),

not for use in refineries yet

H2 not yet eligible as

transportation fuel.

Reduction of refinery

emissions through use of

low carbon hydrogen is

eligible

H2 not yet eligible; ‘further

renewable fuels’ (e.g. PtG)

and ‘other measures’ are

subject to enforcement of

a legal ordinance (§37d

(2), point 13

Infringement

penalty

Subject to national

implementation, which shall

be ‘effective, proportionate

and dissuasive’

Not yet defined

(application decrees

to be published in 2017)

470 €/t CO2eq

Regulatory framework

Fuel greenhouse gas emission reduction

4

5

Refinery landscape Europe

Major refinery locations in Europe:

1. Germany

2. Italy

3. UK

4. France

5. Spain

6. The Netherlands

7. …

Source: LBST with data [E3M et al. 2015]

Sole reference for information is the final report

There is a trade-off between crude oil cost and quality

In Europe, a wide range of crude oil qualities is processed

French and German refiners source rather better qualities

Average crude oil quality [EXERGIA et al. 2015]:

France: 36.0 API gravity, 0.7 wt.-% sulphur

Germany: 37.3 API gravity, 0.5 wt.-% sulphur

Crude oil qualities in European refineries

Image: [EXERGIA et al. 2015] 6

Sole reference for information is the final report

Calculation: Net hydrogen demand = process sources – process uses

Desulphurisation is a sensitive parameter to net hydrogen demand

By tendency,

crude oil quality is further deteriorating increasing sulphur content

demand for heavy fuel fractions is decreasing maritime emission areas

Hydrogen sources and uses in a refinery

Refinery

H2 Sources Reformer/

Platformer

H2 Uses Desulphurisation Hydrotreating Hydrocracking

Crude oil

H2

H2

Gasoline

Kerosene

Diesel

Other

LBST, 27.10.2015

Net H2 demand

7

Sole reference for information is the final report

Life-cycle assessment (LCA)

Pathways for gasoline and diesel supply

Electrolysis Compression & storage

Photovoltaic

Wind power

Extraction Transport Distribution Refuelling station

H2

H2Electricity

Electricity

Crude oil Crude oilGasolineDiesel

GasolineDiesel

Re

new

. ele

ctri

city

Cru

de

oil

Refinery

LBST

, 20

15

-12-

09

NEA

R F

UTU

RE

(GR

EEN

H2)

Extraction Transport Refuelling station

Steam reforming

H2

Natural gas

Extraction & processing Transport

Natural gas

Crude oil Crude oilGasolineDiesel

GasolineDiesel

Nat

ura

l gas

Cru

de

oil

DistributionRefinery

LBST

, 20

15

-12-

09

TOD

AY

(SM

R H

2)

8

9

Scenario Refinery net H2 demand supplied from 100% green H2

Sole reference for information is the final report

FQD minimum target is -6% GHG emissions by 2020

Greenhouse gas emissions ‘well-to-tank‘

France and Germany [g CO2eq/MJfinal fuel]

94.1 93.4 93.7

0

10

20

30

40

50

60

70

80

90

100

Reference Renwable PtH2 Renwable PtH2

Fossil fuel comparator France Germany

GH

G (

g C

O2

equ

ival

ent/

MJ f

inal

fue

l) -0.70% -0.45%

LBST

, 20

15

-12

-15

10

Sole reference for information is the final report

Economic option for German refineries against 470 €/t CO2eq

To give an impression about the quantities, this is equivalent to annual GHG

emission of C segment cars in the order of

Tangible action for refinery corporate social responsibility (CSR)

Refinery GHG emission reduction (gate-to-gate)

France and Germany

France Germany

GHG mitigation of refinery emissions

1.33 Mt CO2eq/a 1.50 Mt CO2eq/a

14.1 % 7.2 %

331 €/t CO2eq 339 €/t CO2eq

Gasoline car @ 7.0l/100km 575,000 648,000

Diesel car @ 5.5l/100km 658,000 740,000

Sole reference for information is the final report

There is increasing interest in Germany from refiner’s side

Criteria EU

Fuel Quality Directive (FQD)

France

Code de l‘énergie

Germany

BImSchG/V

Lifetime 2020 2020 2020

GHG targets

-2 % by 2015

-4 % by 2017

-6 % by 2020

-10 % by 2020

-3.5 % by 2015

-4 % by 2017

-6 % by 2020

Responsibility Supplier Energy tax responsible

entity (usually the refinery)

Energy tax responsible

entity (usually the refinery)

Options

upstream: Flaring/venting

Flaring/venting –

refinery: – Refinery GHG emissions

reduction –

downstream: Biofuels and alternative

fuels from non-biological

sources

Biofuels, electricity Biofuels

Hydrogen

H2 eligible as transportation

fuel (2015/652/EU, ANNEX I),

not for use in refineries yet

H2 not yet eligible as

transportation fuel.

Reduction of refinery

emissions through use of

low carbon hydrogen is

eligible

H2 not yet eligible; ‘further

renewable fuels’ (e.g. PtG)

and ‘other measures’ are

subject to enforcement of

a legal ordinance (§37d

(2), point 13

Infringement

penalty

Subject to national

implementation, which shall

be ‘effective, proportionate

and dissuasive’

Not yet defined

(application decrees

to be published in 2017)

470 €/t CO2eq

Regulatory framework

Fuel greenhouse gas emission reduction

12

Sole reference for information is the final report

Green H2 in refineries is an attractive GHG mitigation option

Introduction of green H2 in an established bulk H2 application

Volume production of H2 reduces electrolyser costs

Electrolysers ‘valley of death’ is bridged by all fuel users

Deployment of power-to-hydrogen for refineries is a strategic

move entailing long-term benefits for all hydrogen uses.

Green hydrogen in refineries

CONCLUSIONS

13

Sole reference for information is the final report

Establish regulatory grounds for accountability at EU level Open FQD for greenhouse gas mitigation options in refineries

Sustainability criteria and certification for renewable/green hydrogen

Fast-track implementation rather at national level, e.g.

In Germany through legal ordinance BImSchG §37d (2)

In France through ordinances currently under development

Other EU Member States?

Avoid regulatory pitfalls, like Carbon leakage: RES-E deployment targets to reflect increasing demand

Double counting/residual mix between companies, sectors, geographies

Interventions ‘behind-the-fence’: Fees/taxes on RES-E own generation &

consumption raises the bar for early markets

Green hydrogen in refineries

RECOMMENDATIONS

14

15

Vanhoudt, W., Barth, F. (Hinicio), Schmidt, P., Weindorf, W. (LBST), et al.: Power-to-gas – Short term and long term opportunities to leverage synergies between the electricity and transport sectors through power-to-hydrogen; Brussels/Munich, 19 February 2016 Application A: Hydrogen from

power-to-gas for use in refineries

Application B: Semi-centralised power-to-hydrogen business cases

Download http://www.fondation-tuck.fr/jcms/r_16975/fr/hinicio-sa

Reference

Sole reference for information is the final report

Contact

Patrick Schmidt (Dipl.-Ing.)

LBST ∙ Ludwig-Bölkow-Systemtechnik GmbH

Daimlerstr. 15 ∙ 85521 Munich ∙ Germany

http://www.lbst.de

E: Patrick.Schmidt@LBST.de

Werner Weindorf ∙ LBST

Tetyana Raksha ∙ LBST

Jan Zerhusen ∙ LBST

Jan Michalski ∙ LBST

Wouter Vanhoudt ∙ Hinicio

Frédéric Barth ∙ Hinicio

COPYRIGHT: HINICIO & LBST

A N N E X

L B S T

LBST.de 16 March 2016 Ludwig-Bölkow-Systemtechnik GmbH

ludwig bölkow

systemtechnik

0

200

400

600

800

1000

1200

1400

1600

1800

2000G

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line

/ke

rose

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Liquid fuelsreference

Liquid fuels (PtL) Gaseous fuels (PtG) Electricity

FOSSIL RENEWABLE

GH

G a

void

an

ce c

ost

s (€

/tC

O2

eq

uiv

ale

nt)

2015 2020 2030 2040 2050

LBS

T,

20

16

-01

-08

Benchmarks: Fuels from

crude oil(0 €/t CO2)

-58%-57%

-67% -67%

-58%

-60%

-62%

-68%-70%

-22%

CO2 avoidance costs well-to-tank [€/t CO2eq] for PtX in EU

18

Least-cost short-term: Electricity

Least-cost long-term: Electricity and CGH2

CO2 from air

100 US$/bbl fossil liquids (IEA) 0 €/t C02

Source: LBST, Renewables in Transport 2050, FVV (ed.), 2016