The German hydrogen and energy transition consulting firm, Profas Energy Consult, has partnered with Energy Exemplar to model the latest and most sophisticated needs of the hydrogen value chain using PLEXOS.
In a world first, Profas Energy Consult, who specialise in development support and implementation coaching for green hydrogen projects, will work with Energy Exemplar to build on its market-leading modelling software platform, PLEXOS, and optimise hydrogen and power-to-X projects. The hydrogen market being in early stages has previously been reliant on basic modelling including spreadsheets to model scenarios. This approach is reaching an end as multiple technology options, renewable weather scenarios, as well as optimal positioning in the grid are playing a key role in project profitability.
Profas Energy Consult and Energy Exemplar will bring their respective expertise in hydrogen and modelling to introduce transparency to hydrogen project value flows, making final investment decisions simpler. They will also ensure that capital is put into projects with the highest chance of success. Profas and Energy Exemplar will develop state-of-the-art project and asset models to simulate hydrogen projects and their commercial impact in the energy market.
Potential use cases for the specialised ‘hydrogen-only’ PLEXOS software include modelling cost-minimised power supply from volatile renewable energy sources, optimal power purchase agreements, energy market trading effects, as well as the value of ancillary services. The modelling will be of particular interest and appeal to hydrogen and power-to-X project developers, as well as financial institutions and investors.
Armin Schnettler, Managing Director of Profas Energy Consult, said: “Optimising the power-to-X value chain requires OEM-specific operating models, degradation effects, maintenance and replacement efforts, to calculate financial data over the desired lifetime – for instance, revenues and cash flows.”
Michael Schneider, SVP and Head of EMEA at Energy Exemplar, said: “By simulating renewable energy supply and its volatility, PPAs and market price forecasts, different hydrogen technology options, the optimal ratings of the electrolyser resp. power-to-X plant will be derived, ensuring the lowest cost of hydrogen and highest economic benefit.”
The news comes as the global energy transition enters its next phase. The ‘green’ hydrogen economy is accelerating the decarbonisation of sectors which are hard to electrify. More than 1000 renewable and low-carbon hydrogen projects requiring US$320 billion in investment by the end of 2030 have been announced globally.
According to the International Renewable Energy Agency’s (IRENA) 2023 1.5C scenario, global electricity demand is expected to triple compared with 2020 with direct and indirect electrification. Smart electrification and effective hydrogen usage will have to be combined to enable the effective integration of renewables.
PLEXOS has emerged as the market-leading simulation and optimisation platform for market players in need of the means to make intelligent decisions by processing and drawing insights from vast amounts of data. Energy Exemplar and Profas Energy Consult plan to have the first dedicated ‘hydrogen’ tool chain based on PLEXOS ready to use by 4Q23. They aim to have completed the power-to-X value chain simulation models in 2024.
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Read the article online at: https://www.worldpipelines.com/project-news/20072023/world-first-partnership-to-model-hydrogen-value-chain/
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