Using restructured electricity markets in the hydrogen transition: The PJM case

Frank Felder, Attila Hajos

Research output: Contribution to journalArticle

12 Citations (Scopus)

Abstract

We examine a hydrogen transition strategy of using excess electric generation capacity in the U.S. midatlantic states during off-peak hours to produce hydrogen via electrolysis. Four different generation technologies are evaluated: combined-cycle natural gas, nuclear power, clean coal, and pulverized coal. We construct hydrogen-electricity price curves for each technology and evaluate the resulting air emissions of key pollutants. Substantial capital investments may be avoided by leveraging off generation assets that would otherwise be built to produce electricity. We also account for the interaction between the production of hydrogen and wholesale electricity prices and demand. Results show that off-peak electrolysis is a plausible but not dominant strategy for hydrogen production; however, there may be a substantial real option value in using the electric power system to transition to a hydrogen economy that may exceed the direct cost savings of producing hydrogen by less expensive methods.

Original languageEnglish
Pages (from-to)1864-1879
Number of pages16
JournalProceedings of the IEEE
Volume94
Issue number10
DOIs
Publication statusPublished - Oct 2006

Fingerprint

Hydrogen
Electricity
Electrolysis
Coal
Hydrogen production
Electric power systems
Nuclear energy
Power markets
Natural gas
Air
Costs

Keywords

  • Electricity markets
  • Hydrogen electrolysis
  • Pennsylvania-New Jersey-Maryland (PJM)
  • Tradeoff analysis

ASJC Scopus subject areas

  • Electrical and Electronic Engineering

Cite this

Using restructured electricity markets in the hydrogen transition : The PJM case. / Felder, Frank; Hajos, Attila.

In: Proceedings of the IEEE, Vol. 94, No. 10, 10.2006, p. 1864-1879.

Research output: Contribution to journalArticle

@article{1cf323fe083a49279ec1d9940482c01a,
title = "Using restructured electricity markets in the hydrogen transition: The PJM case",
abstract = "We examine a hydrogen transition strategy of using excess electric generation capacity in the U.S. midatlantic states during off-peak hours to produce hydrogen via electrolysis. Four different generation technologies are evaluated: combined-cycle natural gas, nuclear power, clean coal, and pulverized coal. We construct hydrogen-electricity price curves for each technology and evaluate the resulting air emissions of key pollutants. Substantial capital investments may be avoided by leveraging off generation assets that would otherwise be built to produce electricity. We also account for the interaction between the production of hydrogen and wholesale electricity prices and demand. Results show that off-peak electrolysis is a plausible but not dominant strategy for hydrogen production; however, there may be a substantial real option value in using the electric power system to transition to a hydrogen economy that may exceed the direct cost savings of producing hydrogen by less expensive methods.",
keywords = "Electricity markets, Hydrogen electrolysis, Pennsylvania-New Jersey-Maryland (PJM), Tradeoff analysis",
author = "Frank Felder and Attila Hajos",
year = "2006",
month = "10",
doi = "10.1109/JPROC.2006.883717",
language = "English",
volume = "94",
pages = "1864--1879",
journal = "Proceedings of the IEEE",
issn = "0018-9219",
publisher = "Institute of Electrical and Electronics Engineers Inc.",
number = "10",

}

TY - JOUR

T1 - Using restructured electricity markets in the hydrogen transition

T2 - The PJM case

AU - Felder, Frank

AU - Hajos, Attila

PY - 2006/10

Y1 - 2006/10

N2 - We examine a hydrogen transition strategy of using excess electric generation capacity in the U.S. midatlantic states during off-peak hours to produce hydrogen via electrolysis. Four different generation technologies are evaluated: combined-cycle natural gas, nuclear power, clean coal, and pulverized coal. We construct hydrogen-electricity price curves for each technology and evaluate the resulting air emissions of key pollutants. Substantial capital investments may be avoided by leveraging off generation assets that would otherwise be built to produce electricity. We also account for the interaction between the production of hydrogen and wholesale electricity prices and demand. Results show that off-peak electrolysis is a plausible but not dominant strategy for hydrogen production; however, there may be a substantial real option value in using the electric power system to transition to a hydrogen economy that may exceed the direct cost savings of producing hydrogen by less expensive methods.

AB - We examine a hydrogen transition strategy of using excess electric generation capacity in the U.S. midatlantic states during off-peak hours to produce hydrogen via electrolysis. Four different generation technologies are evaluated: combined-cycle natural gas, nuclear power, clean coal, and pulverized coal. We construct hydrogen-electricity price curves for each technology and evaluate the resulting air emissions of key pollutants. Substantial capital investments may be avoided by leveraging off generation assets that would otherwise be built to produce electricity. We also account for the interaction between the production of hydrogen and wholesale electricity prices and demand. Results show that off-peak electrolysis is a plausible but not dominant strategy for hydrogen production; however, there may be a substantial real option value in using the electric power system to transition to a hydrogen economy that may exceed the direct cost savings of producing hydrogen by less expensive methods.

KW - Electricity markets

KW - Hydrogen electrolysis

KW - Pennsylvania-New Jersey-Maryland (PJM)

KW - Tradeoff analysis

UR - http://www.scopus.com/inward/record.url?scp=33947329953&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=33947329953&partnerID=8YFLogxK

U2 - 10.1109/JPROC.2006.883717

DO - 10.1109/JPROC.2006.883717

M3 - Article

AN - SCOPUS:33947329953

VL - 94

SP - 1864

EP - 1879

JO - Proceedings of the IEEE

JF - Proceedings of the IEEE

SN - 0018-9219

IS - 10

ER -