Hydrogen storage in geological formations in the EU. An empirical assessment of cost and cost development

Table of Contents

1 Introduction

2 Literature Review

2.1 Methodology

2.2 Technical and geological aspects of salt cavern storage

2.3 Economics of salt cavern storage

2.4 European salt formations and storage potential

3 Specification and design of a storage facility

3.1 Structure

3.2 Scope and components

3.3 Utilization of storage facilities

3.4 Discussion

4 Levelized cost of hydrogen storage

4.1 Methodology

4.2 Construction cost of salt caverns

4.2.1 Salt caverns high-frequency cycling and seasonal cycling

4.2.2 Salt caverns high-frequency cycling and seasonal cycling - Retrofitted

4.2.3 Results and Discussion

4.3 Above-ground components - CAPEX and OPEX

4.3.1 Base case components

4.3.2 Industry and mobility components

4.3.3 Ng-grid injection components

4.3.4 Re-electrification components

4.4 LCOHS calculations

4.4.1 Further input data

4.4.2 Results and further aspects

4.4.3 LCOHS literature estimates

5 Future LCOHS developments

5.1 Methodology

5.2 Data input

5.3 Results and discussion

6 Conclusion

Research Objectives and Key Topics

The primary objective of this thesis is to investigate and determine the levelized cost of hydrogen storage (LCOHS) in salt caverns within the European Union, while analyzing how these costs are expected to develop in the future. The research focuses on the technical, structural, and economic parameters governing large-scale underground storage.

• Technical and geological feasibility of salt caverns for hydrogen storage.
• Detailed cost breakdown (CAPEX and OPEX) for various storage facility configurations.
• Impact of operational modes (high-frequency vs. seasonal cycling) on costs.
• Economic modeling of LCOHS, including sensitivity to learning rates and electricity prices.

Extract from the Book

Summary of Chapters

1 Introduction: Provides an overview of the European Green Deal and the necessity of large-scale hydrogen storage for a decarbonized economy.

2 Literature Review: Details the search methodology and reviews existing knowledge on the technical, geological, and economic aspects of underground hydrogen storage.

3 Specification and design of a storage facility: Outlines the structural requirements, components, and utilization modes of an underground hydrogen storage facility.

4 Levelized cost of hydrogen storage: Presents the mathematical methodology and empirical cost assessment for constructing and operating salt cavern storage.

5 Future LCOHS developments: Investigates the impact of technological learning rates and future demand forecasts on cost reductions.

6 Conclusion: Summarizes the major findings and reflects on the potential future role of salt cavern storage in the EU hydrogen economy.

Keywords

Hydrogen storage, Salt caverns, LCOHS, Levelized cost, Underground storage, Energy economics, Decarbonization, CAPEX, OPEX, Technological learning, EU energy policy, Hydrogen economy, Storage facility, Salt domes, Leaching.

Frequently Asked Questions

What is the core focus of this thesis?

This thesis examines the economic viability and cost structures associated with storing hydrogen in salt caverns within the European Union.

What are the primary fields of interest?

The work covers geology, engineering, and economics, specifically analyzing salt formation types, storage facility design, and investment cost estimations.

What is the main research question?

The study asks: What is the current levelized cost of hydrogen storage (LCOHS) in salt caverns in the EU, and how is this cost expected to evolve in the future?

Which methodology is employed?

The author uses empirical cost modeling based on literature data (CAPEX/OPEX) and applies Wright's Law to estimate cost reductions through technological learning.

What topics are covered in the main section?

The main section details the construction requirements for salt caverns, the necessity of cushion gases, the role of above-ground infrastructure (compressors, decompressors, purifiers), and LCOHS calculations across different scenarios.

Which keywords best describe the work?

Keywords include Hydrogen storage, Salt caverns, LCOHS, Levelized cost, Underground storage, Economic feasibility, and Technological learning.

How does the type of cushion gas affect the LCOHS?

The choice of cushion gas, such as nitrogen or CO2, is an influential factor in facility design and economics, as discussed regarding injection processes and purity requirements.

Why is convergence in salt caverns a relevant factor?

Convergence (the shrinking of the cavern volume over time) is a long-term technical phenomenon that reduces available storage space, thereby impacting the long-term cost-efficiency of the cavern.