ITM Power (AIM: ITM), the energy storage and clean fuel company, is pleased to announce the cost structure of hydrogen generated by the Company’s HFuel electrolysis platform. Combining the capital cost along with operating efficiency gained from completed HOST trials enables a representative hydrogen price to be derived.
The hydrogen costs are best expressed in £/kg and reflect both capital cost amortisation and electricity cost. HFuel can be switched on/off in a second and can be demand side managed as a smart load which could potentially result in electricity costs of less than 4p/kWh and potentially as low as 0p/kWh or negative electricity prices in some parts of Europe utilising a high percentage of intermittent renewable power.
Based on a 100kg/day HFuel system, hydrogen cost ranges from £3.88/kg (based on 4p/kWh and a 20yr Capex amortisation) to £10.71/kg (based on 8p/kWh and a 5yr amortisation). This compares to €9.90/kg (£8.49/kg) which is the European target (McKinsey) for 2015 coinciding with the major roll out of fuel cell vehicles across Europe.
Key HFuel information:
The above analysis assumes 100% up time. The energy storage component (hydrogen storage unit) is quoted separately and is typically tailored to the user’s specific requirements. The maintenance scheme is developed to match the installation site and usage profile. The costs associated with shipping the unit to site are not included as they are location specific. Targets are quoted from the McKinsey analysis ‘A portfolio of power-trains for Europe: a fact-based analysis.’
ITM Power CEO, Graham Cooley, commented: “Hydrogen from HFuel costs less than EU targets and is competitive with fuel on the high street today. What could be more compelling than an economic fuel made from renewable power that has zero emissions?”
HFuel is a modular, transportable, low cost, on-site hydrogen production, storage and dispensing unit. HFuel can be operated as a demand side manageable load by power companies to store intermittent, renewable power.
Hydrogen On Site Trials are available to rent at a rate of £10,000 for the first week and £8,000 for subsequent weeks. The HOST scheme allows potential customers to see firsthand the operation and readiness level of the system on their own site in their own application.
The initiative to allows automotive OEMs to demonstrate the next generation of fuel cell vehicles alongside a sustainable hydrogen fuel supply at high profile events and will be launched at All-Energy in Aberdeen in 2012.
EcoIsland is a smart grid, hydrogen energy storage and clean fuel system based on the Isle of Wight. The partnership consists of (EcoIsland CIC, IBM, Toshiba, Scottish and Southern Energy, Southern Water and ITM Power) and constitutes a significant development in understanding the link between the storage of renewable power and its deployment as a clean transport fuel.