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Background In November 2009 NREL published a report titled “Lifecycle Cost Analysis of Hydrogen Versus Other Technologies for Electrical Energy Storage.”1 A variety of approaches to energy storage were evaluated on the basis of cost-per-kilowatt-hour for electricity delivered in an electricity arbitrage scenario. For example, in one case study, alkaline electrolysis was used to produce hydrogen using off-peak electricity. The hydrogen was compressed into above-ground steel cylinders and then used during peak demand to produce electricity using PEM fuel cells. The results from this case study were compared to other approaches including geologic storage of the hydrogen, a gas turbine instead of a fuel cell for electricity generation, three types of batteries, pumped hydro, and compressed air energy storage (CAES). Consistent financial and operational assumptions were used. Cost and performance parameters for the technologies used in the case studies were taken from literature sources and manufacturers' specification sheets. Aspen Plus was used to model portions of the systems where information was lacking or where existing technologies did not match up due to size or maturity, for example, a hydrogen expansion combustion turbine. The study was constrained by sizing all systems to deliver 300 megawatt-hours of electricity over a six-hour period and by fixing the cost of off-peak electricity at 3.8 cents per kilowatt-hour without regard to the method of generation. Figure 1 shows the results of the study in graphical form. Figure 1. Ranges of levelized cost of electricity delivered by various electricity storage systems 1PDF Image | Reversible Fuel Cells Workshop Summary Report
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