New EU Directives to Drive the Adoption of Power-to-Gas Energy Storage

1st December 2016
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ITM Power (AIM: ITM), the energy storage and clean fuel company, is pleased to note a new package of proposed directives announced yesterday by the European Commission – “Clean Energy for All Europeans – unlocking Europe’s growth potential”. The directives will have a significant effect on the uptake of Power-to-Gas (P2G) energy storage and green hydrogen fuel made by electrolysis across Europe.

A new definition of Energy Storage that includes Power-to-Gas
The energy storage definition specifically includes the conversion of electricity to another energy carrier such as hydrogen. Unlike many previous definitions of storage it is not restricted to power-in/power-out storage and so facilitates the adoption of the power-to-gas approach. The EC definition will enable P2G plant and electrolyser-Hydrogen Refuelling Stations (HRS) to offer storage facilities to the electricity market, while selling hydrogen to the mobility and gas sectors. It will broaden understanding of the needs of a flexible power system and dissuade the electricity industry from thinking only in terms of Power-to-Power (P2P) storage – e.g. batteries.

A level playing field for generation, storage and demand response
Storage technologies have previously suffered from a lack of identity and payment structure within the electricity market, often being seen simply as an electrical load or as a power generator. By providing a level playing field for generation, storage and demand response players can each participate in providing flexibility services to the grid operator. Electrolysers will be able to be instructed by grid operators to provide up/down response for grid services (including frequency regulation and excess energy absorption) and will receive balancing services payments across the EU – as they do already in the UK.

Guarantee of origin scheme for hydrogen
Guarantees of Origin are currently in place for renewable electricity and renewable heating/cooling. By extending them to renewable gases including hydrogen, a consistent means of proving the origin of the gas to consumers is provided so that they can be confident that they are using low-carbon gas. To implement this, a carbon intensity threshold for hydrogen will be applied and provided it is at or below the threshold value, it will be classified as low-carbon and certificates will be awarded to producers of low-carbon hydrogen.

ITM Power CEO, Dr. Graham Cooley, said: “These new EU directives are fundamentally important for unlocking the potential of rapid response grid balancing using electrolysis and for the deployment of Power-to-Gas energy storage across Europe. The guarantee of origin scheme also differentiates green hydrogen as a fuel for transport.”

About ITM Power plc
ITM Power manufactures integrated hydrogen energy solutions which are rapid response and high pressure that meet the requirements for grid balancing and energy storage services, and for the production of clean fuel for transport, renewable heat and chemicals. ITM Power plc was admitted to the AIM market of the London Stock Exchange in 2004.

The Company received £4.9m as a strategic investment from JCB in March 2015. The Company signed a forecourt siting agreement with Shell in September 2015. The Group currently has £18.27m of projects under contract and a further £2.79m of contracts in the final stages of negotiation, totaling £21.06m, subject to exchange rate variation. ITM Power is a founder member of the Social Stock Exchange.

About Power-to-Gas Energy Storage
Power-to-Gas is the process of converting surplus renewable energy into hydrogen gas by rapid response electrolysis and its subsequent injection into the gas distribution network. Rapid response electrolysis offers an effective route for assimilating renewable power and converting it to hydrogen which can be stored for long periods for subsequent use as a fuel for heat, mobility or power generation.

As the proportion of renewable energy in the electricity grid increases, the ability to match this unscheduled intermittent supply with the time– varying demand becomes increasingly problematic. In fact as the deployment meets and exceeds 20% capacity, as already experienced in many countries, grid balancing issues become acute leading to the curtailment of wind (wind turbines are switched off). This is driving the need for long term, large scale energy storage solutions. http://www.itm-power.com/sectors/power-to-gas-energy-storage



Rebecca Markillie
Marketing & Communications
E: rlm@itm-power.com
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