LAPSE:2023.30830
Published Article

LAPSE:2023.30830
A Novel Scheme to Allocate the Green Energy Transportation Costs—Application to Carbon Captured and Hydrogen
April 17, 2023
Abstract
Carbon dioxide (CO2) and hydrogen (H2) are essential energy vectors in the green energy transition. H2 is a fuel produced by electrolysis and is applied in heavy transportation where electrification is not feasible yet. The pollutant substance CO2 is starting to be captured and stored in different European locations. In Denmark, the energy vision aims to use this CO2 to be reacted with H2, producing green methanol. Typically, the production units are not co-located with consumers and thus, the required transportation infrastructure is essential for meeting supply and demand. This work presents a novel scheme to allocate the transportation costs of CO2 and H2 in pipeline networks, which can be applied to any network topology and with any allocation method. During the tariff formation process, coordinated adjustments are made by the novel scheme on the original tariffs produced by the allocation method employed, considering the location of each customer connected to pipeline network. Locational tariffs are provided as result, and the total revenue recovery is guaranteed to the network owner. Considering active customers, the novel scheme will lead to a decrease of distant pipeline flows, thereby contributing to the prevention of bottlenecks in the transportation network. Thus, structural reinforcements can be avoided, reducing the total transportation cost paid by all customers in the long-term.
Carbon dioxide (CO2) and hydrogen (H2) are essential energy vectors in the green energy transition. H2 is a fuel produced by electrolysis and is applied in heavy transportation where electrification is not feasible yet. The pollutant substance CO2 is starting to be captured and stored in different European locations. In Denmark, the energy vision aims to use this CO2 to be reacted with H2, producing green methanol. Typically, the production units are not co-located with consumers and thus, the required transportation infrastructure is essential for meeting supply and demand. This work presents a novel scheme to allocate the transportation costs of CO2 and H2 in pipeline networks, which can be applied to any network topology and with any allocation method. During the tariff formation process, coordinated adjustments are made by the novel scheme on the original tariffs produced by the allocation method employed, considering the location of each customer connected to pipeline network. Locational tariffs are provided as result, and the total revenue recovery is guaranteed to the network owner. Considering active customers, the novel scheme will lead to a decrease of distant pipeline flows, thereby contributing to the prevention of bottlenecks in the transportation network. Thus, structural reinforcements can be avoided, reducing the total transportation cost paid by all customers in the long-term.
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Keywords
green energy, novel scheme, pipeline networks, transportation cost
Subject
Suggested Citation
Benetti MA, Iov F. A Novel Scheme to Allocate the Green Energy Transportation Costs—Application to Carbon Captured and Hydrogen. (2023). LAPSE:2023.30830
Author Affiliations
Journal Name
Energies
Volume
16
Issue
7
First Page
3087
Year
2023
Publication Date
2023-03-28
ISSN
1996-1073
Version Comments
Original Submission
Other Meta
PII: en16073087, Publication Type: Journal Article
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LAPSE:2023.30830
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https://doi.org/10.3390/en16073087
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[v1] (Original Submission)
Apr 17, 2023
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Apr 17, 2023
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