Allocation of Ontario’s Surplus Electricity to Different Power-to-Gas Applications

Abstract

Power-to-Gas (PtG) is a potential means of managing intermittent and weather-dependent renewable energies to create a storable chemical energy form. Power-to-Gas is not only a storage technology; its role can be extended to many other applications including energy distribution, transportation, and industrial use. This study quantifies the hydrogen volumes upon utilizing Ontario, Canada’s surplus electricity baseload and explores the allocation of the hydrogen produced to four Power-to-Gas pathways in terms of economic and environmental benefits, focusing on the following Power-to-Gas pathways: Power-to-Gas to mobility fuel, Power-to-Gas to industry, Power-to-Gas to natural gas pipelines for use as hydrogen-enriched natural gas, and Power-to-Gas to renewable natural gas (i.e., Methanation). The study shows that the Power-to-Gas to mobility fuel pathway has the potential to be implemented. Utilization of hydrogen for refueling light-duty vehicles is a profitable business case with an average positive net present value of $4.5 billions, five years payback time, and 20% internal rate of return. Moreover, this PtG pathway promises a potential 2,215,916 tonnes of CO2 reduction from road travel.