POSITIONPAPERINTEGRATIONOFELECTROLYSERSINTHEENERGYSYSTEM2IntegrationofelectrolysersintheenergysystemIntegrationofelectrolysersintheenergysystemExecutivesummary23Thispaperexplorestheopportunitiesandchallengesofintegratingelectrolytichydrogenproductionintopowersystemsincreasinglydominatedbyvariablerenewableelectricitygeneration;residentialandindustrialheatsystems;andindustrialsystemsrequiringhydrogenandpossiblyoxygen.IntegrationwithindustrySomeindustrialsectorsrequireacontinuous,uninterruptedhydrogensupply.Creatingthisfromvariablerenewablepowerproduction(e.g.windandsolar)requiresstoragesolutionssuchasabatteryenergystoragesystem(BESS)and/orcompressedhydrogenstoragesystem(CHSS)tocounterinherentvariabilityinthepowersupply.Inthispaper,weexplorethistopicbyevaluatingtwocasestudies,onebasedonEuropeanoffshorewindconditions,theotheronsolarconditionsinNamibia.ThesystemsaresimulatedandoptimizedusingDNV’sRenewables.Architectsoftwaretoprovideinsightintocostsrelatedtoacontinuous,uninterruptedhydrogensupply.OursimulationoutcomesforbothcasesindicatethatadesignapproachemployingbothBESSandCHSSyieldsthelowestlevelizedcostofhydrogen(LCOH).Additionally,weobservedthattheoptimaldesign’sBESScapacityishighlysensitivetothecostassumptionsassociatedwiththeelectrolyserplant.Ingeneral,BESSismoreexpensivethanCHSSandstoringenergybeforetheco...
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