Feasibility study and techno-economic assessment of power-to-gas (P2G) technology based on solid oxide electrolysis (SOE).

ABSTRACT

Power-to-Gas (P2G) is considered as a promising energy storage technology in a long-time horizon. The rapid growth in the share of intermittent renewables in the energy mix is driving forward research and development in large-scale energy storage. This paper presents a feasibility analysis of a power-to-gas system in terms of various operating points and capacities. The analysis was performed using a system model, which features a solid oxide electrolyzer (SOE), a CO2 separation unit, and a methanation reactor as the key components. For the purposes of the techno-economic assessment (TEA) of the system, the CAPEX/OPEX estimation was performed and the cost structure defined. The model proposed in the study enables system-level optimization, including technical and economic criteria, considering two nominal scales 10 kW and 40 GW, which corresponds to the nominal capacity of SOE in each case. According to the study, in an SOE-based P2G system, the cost of synthetic natural gas (SNG) production will fall by 15-21% by 2030 and 29-37% by 2050. SNG production would cost 3.15-3.75 EUR2023/kgSNG in 2030 and 2.6-3.0 EUR2023/kgSNG in 2050 for systems with SOE power >10 MW. Generally, product cost reductions occur as a result of material development and large-scale production, which influences the system's CAPEX. According to the research, the technology will break even by 2050. The large-scale power-to-gas system with a total of 40 GW installed capacity delivers a product price of 2.4 EUR2023/kgSNG with the average conversion efficiency of 68%.