SEN 556 - Techno-economic Optimization of Hydrogen Energy Storage System Assignment

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Assignment Task

1. Introduction

The primary focus of the project is the design and optimization of a hydrogen energy storage system (HES) capable of serving multiple energy delivery pathways and offering valuable grid services. This project aims to provide students with a practical understanding of HES and its potential applications, as well as the opportunity to develop and apply advanced optimization techniques to real-world energy challenges. By completing this project, you will deepen your knowledge and skills in the field of energy storage, preparing them for careers in the rapidly evolving clean energy sector. The project is based on the following reference paper:

Di Wu, Dexin Wang, Thiagarajan Ramachandran, Jamie Holladay, A techno-economic as- sessment framework for hydrogen energy storage toward multiple energy delivery pathways and grid services, Energy, Volume 249, 2022, 123638, ISSN 0360-5442

2. Objective

The objective of this project is to design a hydrogen energy storage system (HES) that optimizes its economic benefits from multiple energy delivery pathways and grid services. A techno- economic assessment framework will be developed, closely following the mathematical model presented in the reference paper. This framework will be used to evaluate and optimize the HES system, taking into account various operational constraints. By adhering to the methodology outlined in the reference paper, the project will provide a rigorous and systematic approach to understanding and addressing the challenges and opportunities associated with hydrogen energy storage.

3. Problem Description

A local energy network connected to the grid has a high penetration of renewable energy sources, leading to challenges associated with intermittency and grid stability. A hydrogen energy storage system (HES) is proposed to address these challenges and provide additional grid services. The project participants must develop a techno-economic assessment framework that evaluates and optimizes the HES system, considering multiple energy delivery pathways and grid services.

4. System Components

  • Electrolyzer: Converts electricity to
  • Hydrogen compression: Compresses hydrogen for
  • Hydrogen storage: Stores compressed
  • Enegy delivery pathways: Power-to-gas, power-to-power, and power-to-mobility.
  • Grid services: Frequency regulation, spinning reserve, demand response, and energy ar-

5. Optimization Problem

Develop an optimization model to maximize the economic benefits of the HES system over a representative year with an hourly time step. The model should consider the trade-offs among different value streams, operational capabilities, flexibility, and constraints associated with hydrogen production, compression, storage, and utilization as well as different grid services.

6. Deliverables

  • A detailed report describing the techno-economic assessment framework, optimization model, constraints, and solution approach. This should include comprehensive explana- tions of the input parameters, decision variables, objective function, and
  • A presentation of the results, including the optimal HES system design, economic benefits from different value streams, and sensitivity
  • A sensitivity analysis to study the impact of key parameters (e.g., electricity prices, component costs, efficiency, and grid service requirements) on the optimal
  • Source code and data files for the optimization model developed in GAMS or

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