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At least 703 records · Page 39

Development Strategy for Gas Turbines with Firebrick Resistance-Heated Energy Storage to Enable Nuclear-Renewable Grid Integration

The world is transitioning to a low-carbon energy system. Variable electricity and industrial energy demands have been met with storable fossil fuels-systems with low-capital costs and high-operating costs. In contrast, the low-carbon energy sources (nuclear, wind and solar) are characterized by high-capital-costs and low-operating costs. High utilization is required to produce economic energy. The addition of large quantities of wind or solar changes the market. The Massachusetts Institute of Technology (MIT) Future of Solar Energy study examined the solar option and the challenge of moving from an electricity grid dominated by fossil fuel generation to a grid with significant solar capacity. As more solar plants are built, electricity prices at times of high solar output collapse; thus, solar revenue collapses as solar production increases. This limits unsubsidized solar capacity to a relatively small fraction of total electricity production even if there are large decreases in solar capital costs. The same occurs with the large-scale use of wind. This results in increasing number of hours of near-zero wholesale prices for electricity that has been seen in multiple electricity markets in Europe and the United States. This is bad economic news for nuclear, wind and solar for revenue collapse limits the use of low-carbon technologies. It favors lower-capital-cost higher-operating-cost natural gas plants with their capability to cycle up and down quickly. New technologies are required to store or use this electricity at times of low prices to produce electricity at times of high prices. The use of gas-turbines with Firebrick Resistance-Heated Energy Storage (FIRES) is proposed herein to address this challenge as part of a broader strategy to develop nuclear power systems with three goals: (1) compete with natural gas, (2) prosper with subsidized wind and solar and (3) enable a low-cost low-carbon nuclear-renewable energy system.

25 ENERGY STORAGE↗

A stochastic techno-economic analysis of shrub willow production using EcoWillow 3.0S: A Stochastic Techno-Economic Analysis of Shrub Willow Production Using EcoWillow 3.0S

EcoWillow 3.0S is a techno-economic analysis (TEA) tool that calculates realistic willow biomass production costs using data from field trials of willow production in New York State. The model represents the input parameters for diesel fuel price, wood price, and willow yield as data-derived probability distributions rather than as single values. This study uses EcoWillow 3.0S with Oracle Crystal Ball to perform a stochastic TEA of shrub willow production in the Northeastern United States. Two outputs obtained from this model are a 24-year net present value (NPV) and minimum selling price (MSP) of shrub willow production under price and yield uncertainty. The MSP for dry willow ranges within a 95% confidence interval from $\$ 59$. -$\$ 102$/Mg. The NPV, also within a 95% confidence interval, ranges from -$\$ 153$ 819 to $\$ 207$ 129 for 40 ha of willow harvested seven times over 24 years. The relevance of this study is to utilize the TEA methodology to assess the financial feasibility of shrub willow production as a bioenergy feedstock. The results of this analysis provide the bioenergy field with NPV and MSP probability distributions on shrub willow production that have previously been absent from the refereed literature. Using data collected from field operations over a number of years, EcoWillow 3.0S captures some of the key inputs that influence the variation in the delivered cost of willow biomass crops.

09 BIOMASS FUELS↗

Economic comparative advantage of willow biomass in the Northeast USA

We evaluate the potential economic availability of willow ( Salix spp.) short-rotation woody crops in the Northeast USA. Based on results from a 20-year agronomic simulation, the Northeast USA could potentially provide between 2.1 and 9.7 million dry Mg year -1 , depending on farmgate price and competition with other energy crops. In a diversified biomass energy-crop scenario, willow outperforms other lignocellulosic energy crops in planted area and production at 91% of supply and 83% of planted area in a low-price scenario in the Northeast USA. In a high-price scenario, willow also outperforms competing energy crops at 47% of production and 51% of planted area. In contrast with the rest of the USA, willow comprises the greatest portion of energy crop potential in the Northeast. Furthermore, these results suggest that willow has an agronomic comparative advantage in this region as compared to herbaceous energy crops, with great potential to increase production given adequate market prices.

09 BIOMASS FUELS↗

Scale sensitivity of ethanol production via consolidated bioprocessing with consideration of feedstock cost

We examine feedstock cost and minimum selling price for ethanol production from corn stover as a function of scale, stover yield, participation rate, and price incentives for two conversion technologies: a conventional base case featuring thermochemical pretreatment with added cellulase, and an advanced case featuring consolidated bioprocessing with cotreatment (C-CBP). Delivered feedstock cost ranged from $\$85$ Mg −1 at small (10 million gallons year −1 or ~38 million L year −1 ) scale with high yield and participation rates to $\$124$ Mg −1 at large scale (60 million gallons year −1 or 227 million L year −1 ) and low yield and participation rates. The minimum ethanol selling price (MESP) was approximately twofold lower for the advanced case compared with the base case. The payback period was several times lower for the advanced case compared with the base case, with increasing disparity at smaller scales, and was highly sensitive to ethanol price supports. For both C-CBP and the conventional processing paradigm, MESP decreased with increasing scale, indicating that the cost penalty due to higher feedstock transport distances was more than outweighed by lower capital costs. However, the cost penalty for operation at small scale, expressed in $ gallon −1 ethanol, is lower for C-CBP than for the conventional paradigm by roughly twofold. Particularly for initial applications of C-CBP, we speculate that this cost penalty will likely be modest compared with the anticipated benefits of small-scale operation such as increased opportunity to use existing infrastructure, easier plant siting and supply chain establishment, and lower total investment required.

biorefinery scale↗

Renewable hydrogen and ammonia for combined heat and power systems in remote locations: Optimal design and scheduling

Abstract Using hydrogen (H ) and ammonia (NH ) for renewable energy storage has the potential to enable economical power and heat supply with high renewable penetrations, especially in remote locations which are characterized by high energy costs. In this work we assess the economic competitiveness of renewable combined heat and power (CHP) systems in Mahaka HI, Nantucket MA, and Northwest Arctic Borough (NWAB) AK by optimally designing these systems for scenarios in which power and heat can be purchased over a range of historical energy prices as well as when 100% renewable supply is required. We use a combined optimal design and scheduling model which minimizes annualized net present cost by determining optimal technology selection and size simultaneously with optimal schedules for each period of a system operating horizon aggregated from full year hourly resolution data via a consecutive temporal clustering algorithm. We find that renewable generation meets at least 85% of power demands and 75% of heat demands under the lowest energy prices investigated. Higher conventional energy prices lead to increased renewable penetration which is facilitated by renewable NH as a seasonal energy storage medium, as are 100% renewable CHP systems. NH is used for power generation with heat cogeneration in all three locations, as well as directly for heating in NWAB. On an annual cost basis, NH ‐enabled 100% renewable CHP is only 3% more expensive in Mahaka and NWAB than systems which can purchase energy at the lowest prices, while it is 15% more expensive in Nantucket.

Palys, Matthew J.↗

Climate Mitigation Policy Implications for Global Irrigation Water Demand

Energy, water and land are scarce resources, critical to humans. Developments in each affect the availability and cost of the others, and consequently human prosperity. Measures to limit greenhouse gas concentrations will inevitably exact dramatic changes on energy and land systems and in turn alter the character, magnitude and geographic distribution of human claims on water resources. We employ the Global Change Assessment Model (GCAM), an integrated assessment model to explore the interactions of energy, land and water systems in the context of alternative policies to limit climate change to three alternative levels: 2.5 Wm-2 (445 ppm CO2-e), 3.5 Wm-2 (535 ppm CO2-e) and 4.5 Wm-2 (645 ppm CO2-e). We explore the effects of alternative land-use emissions mitigation policy options—one which values terrestrial carbon emissions equally with fossil fuel and industrial emissions, and an alternative which places no penalty on land-use change emissions. We find that increasing populations and economic growth could be anticipated to lead to increased demand for water for agricultural systems (+200%), even in the absence of climate change. In general policies to mitigate climate change will increase agricultural demands for water, regardless of whether or not terrestrial carbon is valued or not. Burgeoning demands for water are driven by the demand for bioenergy in response to emissions mitigation policies. We also find that the policy matters. Increases in the demand for water when terrestrial carbon emissions go un-prices are vastly larger than when terrestrial system carbon emissions are prices at the same rate as fossil fuel and industrial emissions. Our estimates for increased water demands when terrestrial carbon systems go un-priced are larger than earlier studies. We find that the deployment of improved irrigation delivery systems could mitigate some of the increase in water demands, but cannot reverse the increases in water demands when terrestrial carbon emissions go un-priced. Finally we estimates that the geospatial pattern of water demands could stress some parts of the world, e.g. China, India and other countries in south and east Asia, earlier and more intensely than in other parts of the world, e.g. North America.

agriculture water↗

Evaluating grid stress and reliability in future electricity grids across a range of demand, generation mix, and weather trends

The reliability of power grids in the future will depend on how system planners account for the integration of new technologies, extreme weather events, and uncertainties in demand growth from increased electrification and data centers. This study introduces an open-source, multisectoral, multiscale modeling framework that projects grid stress and reliability trends between 2020 and 2055 in the Western Interconnection of the United States. The framework integrates global to national energy-water-land dynamics with power plant siting and hourly grid operations modeling. We analyze future wholesale electricity price shocks and unserved energy events across eight scenarios spanning a range of population growth and economic change, generation mixes, and weather conditions. Our results show future grids with high percentage of non-renewable generation and strong economic growth are characterized by higher reliability and lower wholesale electricity prices than lower growth scenarios because of larger reliance on dispatchable generators and lower fossil fuel extraction costs. Scenarios with high percentage of renewable resources have lower median but more volatile wholesale electricity prices as well as more frequent and severe unserved energy events compared to scenarios relying more on dispatchable generators. These events occur because higher proportion of solar and wind energy causes net demand curves to deepen during midday (duck curves get progressively severe), exacerbating the challenge of meeting demand during summer evening peaks. This study suggests that robust and co-optimized transmission and energy storage planning could help maintain low wholesale electricity prices and high reliability levels in future electricity grids across uncertainties in generation mixes.

Electric grid reliability↗

Distributed energy management for community microgrids considering network operational constraints and building thermal dynamics

A distributed energy management system for community microgrids is developed here. Unlike a centralized optimization-based energy management system, it schedules distributed energy resources and energy storage systems, as well as residential appliances, indirectly through iterative interaction between the microgrid central controller and home energy management systems, based on price signals. In each iteration, the microgrid central controller adjusts the scheduling of distributed energy resources and energy storage systems at the microgrid level. Meanwhile, the home energy management system of each house adjusts the scheduling of residential appliances. Then, the energy price at each bus is updated according to the unbalanced power between generation and demand. The optimization converges when the unbalanced power of all buses is close to zero, i.e., the microgrid central controller and home energy management systems reach an agreement on the energy price and generation/consumption. In particular, a detailed thermal dynamic model of the house is integrated into the HEMS scheduling for intelligent control of the heating, ventilation, and air-conditioning system by customers. Lastly, the distribution network is also considered to make the energy price signal locational. Results of case studies validate the efficacy of the proposed distributed energy management system.

24 POWER TRANSMISSION AND DISTRIBUTION↗

The Impacts of Demand Response Participation in Capacity Markets

Demand Response is capable of reducing the total amount of generation capacity investment required to ensure electricity system security. We utilise this fact to devise a novel methodology to estimate the contribution of a load-shifting demand response resource to system adequacy. We then simulate an electricity market using mixed complementarity models to determine how the participation of demand response in capacity markets impacts on market outcomes. Demand response primarily affects the equilibrium outcome through the energy market, however demand response also reduces both equilibrium prices and consumer costs through its capacity market contribution. The effect is particularly pronounced when there is a high level of variable renewable generation and initial undercapacity. In the absence of demand response, increased wind generation leads to higher capacity prices as generators seek to offset depressed energy prices. However, we find that demand response's participation in the capacity market can combat these increased capacity prices. These results suggest that demand response participation in capacity markets can mitigate some of the market challenges of renewable integration, particularly that of the 'missing money' problem.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Biodiesel production from engineered sugarcane lipids under uncertain feedstock compositions: Process design and techno-economic analysis

In this study, different process schemes were designed and evaluated for biodiesel production from engineered cane lipids with uncertain fatty acid compositions. Four different process schemes were compared under (i) thermal glycerolysis and (ii) enzymatic glycerolysis approaches. These schemes were based on the biodiesel yield and economic indicators such as the net present value (NPV) and the minimum selling price (MSP) of biodiesel. A scheme with polar lipid separation under thermal glycerolysis resulted in the maximum NPV ($\$96.5$ million) and minimum MSP ($\$1107$ /ton biodiesel), respectively. Through local sensitivity analysis, it was concluded that the cane lipid percentage is the most significant factor influencing process economics. A conjoint analysis of the lipid procurement price and cane lipid percent suggested that 15% cane lipids with a low lipid procurement price ($\$0.536$ /kg) results in a positive NPV. When the cane lipid price is higher (> $\$0.80$ /kg), a 20% lipid content should be considered to achieve a positive NPV. At 20% cane lipids, the worst-case and best-case scenarios were evaluated by analyzing the interplay of the three most important parameters, Here, the best-case scenario revealed that the minimum NPV under any process scheme could yield more than $\$100$ million (or MSP: $\$0.80$ /L), and the worst-case analysis showed that losses incurred by the plant could be as high as 80 million (MSP: $\$1.36$ /L). A Monte Carlo simulation indicated that there is a 70% chance of the plant being profitable (NPV > 0).

09 BIOMASS FUELS↗

Technoeconomic assessment of hydrogen cogeneration via high temperature steam electrolysis with a light-water reactor

Increased electricity production from renewable energy resources, coupled with low natural gas (NG) prices, has caused existing light-water reactors (LWRs) to experience diminishing returns from the electricity market. This reduction in revenue is forcing LWRs to consider alternative revenue streams, such as introduction hydrogen production or desalination, to remain profitable. This paper performs a technoeconomic assessment (TEA) regarding the viability of retrofitting existing pressurized-water reactors (PWRs) to produce green hydrogen (H 2 ) via high-temperature steam electrolysis (HTSE). Such an integration would allow nuclear facilities to expand into additional markets that may be more profitable in the long term and eliminate CO 2 emissions from the hydrogen production process. Here, to accommodate such an integration, a detailed single market levelized cost of hydrogen (LCOH) and multimarket analyses were conducted of HTSE process operation, requirements, costing, and flexibility. Alongside this costing analysis, market analyses were conducted on the electric and hydrogen markets in the PJM interconnect. Utilizing a novel stochastic, dispatch optimization approach results suggest that a positive gain is achievable, and by operating in multiple markets, the nuclear facility can avoid the sale of electricity during times of low electricity market pricing, while maintaining the ability to capitalize on the high electricity market pricing. It should be noted that the analysis conducted is a differential cash flow analysis and, as such, does not present profit levels. LCOH analysis results demonstrate the potential exists to produce hydrogen at a cost as low as $1.20/kg. This price is lower than traditional steam methane reforming (SMR) allowing nuclear based hydrogen production to disrupt the existing hydrogen production market.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗

The interaction of wholesale electricity market structures under futures with decarbonization policy goals: A complexity conundrum

Competitive wholesale electricity markets can help facilitate energy system decarbonization by incentivizing investments in clean energy technologies that meet evolving system needs. We explore market structure impacts on generator operations and deployment by risk-averse, heterogeneous investor firms using the Electricity Markets and Investment Suite - Agent-based Simulation (EMIS-AS) model. Here we apply clean energy targets of 45%-100% by 2035 considering energy, ancillary services, capacity, and clean energy credit products and pricing and eligibility rules. Results highlight a complexity conundrum, whereby finding the "right" market design to achieve decarbonization goals and avoid unintended consequences can be a highly-nuanced, non-incremental challenge. Carefully designed energy-only markets can achieve the same clean energy targets as capacity market structures but with different revenue and profitability outcomes. Operating reserve demand curve-based scarcity pricing can substitute capacity markets for similar deployment outcomes. Carbon pricing alone is most effective at achieving decarbonization levels at low clean energy targets, and clean energy credit markets and carbon pricing are substitutionary at high clean energy targets. Restricting technology participation in capacity and operating reserve markets can impact deployment and operations, even for nonrestricted technologies. Adding an inertia product with fast frequency response yields insufficient provision at high clean energy targets, but work is needed to understand frequency requirements and capabilities.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Benchmarking thermal energy storage cost for industrial process heat

Process heat accounts for roughly half of industrial energy demand, and currently 95% of process heat is derived from the combustion of natural gas, oil, and coal. Electrification of industrial heating could be an alternative, potentially expanding locations suitable for manufacturing; however, industrial facility owners may desire energy storage to stabilize energy costs. In this work, the economic benefits of pairing thermal storage with electrified process heat to reduce the average price paid for energy are analyzed. Cost savings focus on energy arbitrage, or leveraging flexible energy pricing schemes, alone. The cost of natural gas combustion across decades (2019-2060) is compared to the costs of electricity and thermal energy storage in four United States Independent System Operator (ISO) regions. Systems installed today may not yield positive net present value (NPV) compared to the use of natural gas. However, using estimated electricity prices, systems installed in 2030 using arbitrage alone could be profitable when compared to natural gas in some regions of the U.S. Furthermore, if capital expenditures could be reduced by 50% for sensible thermal storage systems by 2030, profitable systems are found across all regions. This implies that electrification of industrial process heat, when paired with inexpensive thermal energy storage systems, could be less expensive than brownfield natural gas systems, using arbitrage as the only source of revenue and without a dependency on any future policy drivers such as pricing externalities that could further incentivize the electrification of industrial process heat.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Electric-vehicle battery second-life and recycling pathways: How economics depend on chemistry, processing, and application

We assess the economics of repurposing and recycling electric vehicle (EV) batteries by estimating the maximum acquisition price repurposers and recyclers could pay for used EV packs across cathode chemistries, first-life conditions, second-life applications, and recycling processes. We develop a novel open-source process-based cost model of a UL-1974-certified repurposing facility and leverage battery degradation models to estimate the maximum acquisition price repurposers could pay for used EV batteries while producing second-life battery energy storage systems with life-adjusted costs equivalent to new systems. We compare these maximum price estimates to maximum prices for recyclers based on cost and revenue estimates from the EverBatt model. We find that repurposing is more economical than recycling for lithium iron phosphate (LFP) batteries, due to their relatively long life and low value materials; recycling is generally more economical than repurposing for lithium nickel cobalt aluminum oxide (NCA) batteries, due to their shorter life and higher value materials; and the economics for lithium nickel manganese cobalt oxide (NMC) batteries depend more heavily on first life retirement conditions and second life application intensity. These results suggest an overall strategy: reuse LFP, recycle NCA, and sort NMC into recycling or repurposing pathways based on state of health and second-life application.

25 ENERGY STORAGE↗

Adoption of switchgrass cultivation for biofuel under uncertainty: A discrete-time modeling approach

Production of biofuels from cellulosic sources, such as switchgrass, is being encouraged through man- dates, incentives, and subsidies. However, uncertainty in future prices coupled with large establishment costs often inhibit their cultivation. Owing to their inability to incorporate uncertainty and dynamic decision-making, standard discounted cash flow techniques are ineffective for analyzing such in- vestments. We formulate a discrete-time binomial framework to model output prices, allowing us to incorporate price uncertainty, stand age, and variable crop yields into the analytical framework. We analyze the feasibility of investments in switchgrass cultivation under varying price transition paths, evaluate the relationship between risk and profitability, and estimate the value of flexible decision- making options wherein the farmer can alter cultivation choices. Here, we find that switchgrass cultivation is only 32% likely to be profitable in the base model and infer that on-farm management could play an important role in entry and exit decisions. We also find that subsidies are important for project viability and policymakers could consider incorporating payments for ecosystem services to encourage adoption.

09 BIOMASS FUELS↗

Expanding the horizon of bio-naphtha beyond gasoline blend: property characterization and conversion opportunity assessment through technoeconomic and life-cycle analyses

Bio-naphtha, a common by-product of biorefineries, is expected to experience substantial growth in supply due to increasing demands for renewable diesel and synthetic aviation fuel (SAF). However, demand for bio-naphtha itself as a gasoline blendstock is limited because of the electrification of light-duty vehicles. This work investigated valorization opportunities for bio-naphtha from catalytic fast pyrolysis, hydrothermal liquefaction, Fischer–Tropsch synthesis, and hydrotreated esters and fatty acids pathways. These opportunities include producing polymer-grade olefin via steam cracking, SAF via steam cracking followed by olefin oligomerization, and renewable aromatics benzene, toluene, and xylene (BTX) and hydrogen via catalytic reforming. Process models were developed in Aspen Plus V14 and Aspen HYSYS V14 to calculate the mass and energy balances for each conversion step. Technoeconomic assessment and life-cycle analysis were conducted to evaluate the minimum fuel/product selling price, conversion cost, and life-cycle CO2 equivalent (CO2e) emission reduction. Technoeconomic assessment results suggest a minimum fuel/product selling price as low as $1.9/kg of olefins, $6.30/gal of gasoline-equivalent SAF, and $1.2/kg of BTX without any incentives. For all pathways, these prices are dominated by bio-naphtha feedstock costs, which account for at least 76% of the total cost. Compared with petroleum baselines, bio-naphtha-derived SAF, olefins, and BTX can achieve significant CO2e emission reductions from the use of renewable carbon resources. The results of life-cycle analysis and subsequent technoeconomic assessment, incorporating carbon credits, indicate the economic viability of using bio-naphtha for polymer-grade olefin and BTX production, with product costs comparable to market prices.

Xu, Shuang↗

Sensitivity of natural gas deployment in the US power sector to future carbon policy expectations

One option for reducing carbon emissions in the power sector is replacement of coal-fired generation with less carbon-intensive natural gas combined cycle (NGCC) generation. In the United States, where there is abundant, low-cost natural gas supply, increased NGCC deployment could be a cost-effective emissions abatement opportunity at relatively modest carbon prices. However, under scenarios in which carbon prices rise and deeper emissions reductions are achieved, other technologies may be more cost-effective than NGCC in the future. In this analysis, using a US energy system model with foresight (a version of the National Energy Modeling System or “NEMS” model), we find that varying expectations about carbon prices after 2030 does not materially affect NGCC deployment prior to 2030, all else equal. An important implication of this result is that, under the set of natural gas and carbon price trajectories explored here, myopic behavior or other imperfect expectations about potential future carbon policy do not change the natural gas deployment path or lead to stranded natural gas generation infrastructure. Lastly, we explain these results in terms of the underlying economic competition between available generation technologies and discuss the broader relevance to US climate change mitigation policy.

03 NATURAL GAS↗