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An Economic, Environmental and Safety Analysis of Using Hydrogen Enriched Natural Gas (HENG) in Industrial Facilities
The enrichment of natural gas with hydrogen has been identified as a promising pathway for power-to-gas technology with the potential to reduce emissions while achieving feasible return on investment. The evolving regulatory market in the province of Ontario motivates the analysis of business cases...
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Published in: | Energies (Basel) 2021-05, Vol.14 (9), p.2445 |
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description | The enrichment of natural gas with hydrogen has been identified as a promising pathway for power-to-gas technology with the potential to reduce emissions while achieving feasible return on investment. The evolving regulatory market in the province of Ontario motivates the analysis of business cases for hydrogen on the industrial microgrid scale. This paper aims to investigate the financial and environmental returns associated with producing and storing electrolytic hydrogen for injection into the natural gas feed of a manufacturer’s combined heat and power plants (CHPs). A mathematical methodology was developed for investigating the optimal operation of the integrated system (power-to-gas along with the current system) by considering hydrogen-enriched natural gas. The result of this simulation is an operation plan that delivers optimal economics and an estimate of greenhouse gas emissions. The simulation was implemented across an entire year for each combination of generation price limit and storage coefficient. Because the provincial grid imposes a lesser carbon footprint than that of a pure natural gas turbine, any offset of natural gas by hydrogen reduces the carbon intensity of the system. From an environmental perspective, the amount of carbon abated by the model fell within a range of 3000 ton CO2/year. From a policy perspective, this suggests that a minimum feasible carbon price of $60/ton CO2e must be set by applicable regulatory bodies. Lastly, a Failure Modes and Effects Analysis was performed for the proposed system to validate the safety of the design. |
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The evolving regulatory market in the province of Ontario motivates the analysis of business cases for hydrogen on the industrial microgrid scale. This paper aims to investigate the financial and environmental returns associated with producing and storing electrolytic hydrogen for injection into the natural gas feed of a manufacturer’s combined heat and power plants (CHPs). A mathematical methodology was developed for investigating the optimal operation of the integrated system (power-to-gas along with the current system) by considering hydrogen-enriched natural gas. The result of this simulation is an operation plan that delivers optimal economics and an estimate of greenhouse gas emissions. The simulation was implemented across an entire year for each combination of generation price limit and storage coefficient. Because the provincial grid imposes a lesser carbon footprint than that of a pure natural gas turbine, any offset of natural gas by hydrogen reduces the carbon intensity of the system. From an environmental perspective, the amount of carbon abated by the model fell within a range of 3000 ton CO2/year. From a policy perspective, this suggests that a minimum feasible carbon price of $60/ton CO2e must be set by applicable regulatory bodies. 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subjects | Capital expenditures Carbon Carbon dioxide Climate change Cogeneration combined heat and power unit (CHPs) Cost control Distributed generation Electricity Energy storage Enrichment Failure modes failure modes and effects analysis Fossil fuels Gas turbines Greenhouse effect Greenhouse gases Hydrogen hydrogen economy hydrogen enriched natural gas Hydrogen enrichment Incentives Industrial plants Industrial safety Infrastructure Natural gas Operating costs Power plants power-to-gas Renewable resources Return on investment Safety engineering Simulation Storage coefficient |
title | An Economic, Environmental and Safety Analysis of Using Hydrogen Enriched Natural Gas (HENG) in Industrial Facilities |
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