Partnership Between Profas Energy Consult and Energy Exemplar to Model Hydrogen Production and Utilization Processes, a Groundbreaking First
The energy sector is witnessing a significant shift as the global energy transition enters its next phase, with the 'green' hydrogen economy accelerating the decarbonisation of sectors which are hard to electrify. In this context, Profas Energy Consult, a German hydrogen and energy transition consulting firm, has partnered with Energy Exemplar to model the hydrogen value chain using PLEXOS, Energy Exemplar's specialized "hydrogen-only" software platform.
This collaboration aims to optimize hydrogen and power-to-X projects by leveraging the advanced modeling capabilities of PLEXOS. The partnership focuses on modeling the entire hydrogen value chain to enhance project design, operational efficiency, and economic viability through sophisticated simulation and optimization techniques.
Energy Exemplar's hydrogen-specific PLEXOS software is tailored to capture the unique technical and economic characteristics of hydrogen production, storage, and usage. This allows for detailed scenario analysis and optimization across complex hydrogen systems that interact with power grids and renewable energy sources.
Potential use cases for the hydrogen-specific PLEXOS software include optimizing electrolyzer operation to balance hydrogen production with variable renewable electricity supply, designing integrated power-to-X projects that convert excess renewable energy into hydrogen or other fuels, evaluating hydrogen storage strategies to ensure system reliability and cost-effectiveness, assessing market participation strategies for hydrogen producers and consumers in electricity and hydrogen markets, and planning infrastructure and supply chains for hydrogen distribution and utilization.
Armin Schnettler, Managing Director of Profas Energy Consult, stated that optimizing the Power-to-X value chain requires OEM-specific operating models, degradation effects, maintenance, and replacement efforts to calculate financial data over the desired lifetime. The first dedicated "hydrogen" tool chain based on PLEXOS is planned to be ready by Q4 of 2023, with the power-to-X value chain simulation models completed in 2024.
The partnership between Profas Energy Consult and Energy Exemplar is particularly significant as the hydrogen market, which has previously relied on basic modeling methods like spreadsheets, is transitioning to more sophisticated models due to the increasing complexity of project profitability. According to the International Renewable Energy Agency's (IRENA) 2023 1.5C scenario, global electricity demand is expected to triple compared with 2020 with direct and indirect electrification, requiring smart electrification and effective hydrogen usage for the effective integration of renewables.
In addition to Profas Energy Consult, potential users of the PLEXOS software include hydrogen and power-to-X project developers, financial institutions, and investors. Energy Exemplar's state-of-the-art modelling software, including the world-leading PLEXOS suite, empowers clients across 73 countries to run simulations, analyse scenarios, and make decisions.
FiveT Hydrogen, a company developing an investment fund family focusing exclusively on clean hydrogen, is also involved in this partnership. Natalia Westhaeuser (MBA) and Armin Schnettler (Univ.-Prof. Dr.-Ing.) are Managing Directors of Profas Energy Consult and Operating Partners of FiveT Hydrogen.
Energy Exemplar, the leading simulation software provider for the world energy market, headquartered in Australia but with a global presence, is excited about this partnership. By simulating renewable energy supply, PPAs, and market price forecasts, the optimal ratings of the electrolyser or power-to-X plant will be derived, ensuring the lowest cost of hydrogen and highest economic benefit. This partnership between Profas Energy Consult and Energy Exemplar marks a significant step forward in the optimization of hydrogen and power-to-X projects, bringing transparency to hydrogen project value flows and simplifying final investment decisions.
- The green hydrogen economy is accelerating the decarbonisation of sectors that are hard to electrify, signifying a new phase in the energy transition.
- Profas Energy Consult, a German hydrogen and energy transition consulting firm, has partnered with Energy Exemplar to optimize hydrogen and power-to-X projects through the use of PLEXOS, Energy Exemplar's specialized software platform.
- This collaboration aims to model the entire hydrogen value chain to enhance project design, operational efficiency, and economic viability, providing a pathway for the hydrogen economy in the industry.
- The hydrogen-specific PLEXOS software is designed to capture the unique technical and economic characteristics of hydrogen production, storage, and usage, enabling detailed scenario analysis and optimization.
- As the hydrogen market shifts towards more sophisticated models, this partnership between Profas Energy Consult and Energy Exemplar could benefit hydrogen and power-to-X project developers, financial institutions, investors, and companies like FiveT Hydrogen that focus on clean hydrogen investment funds.
- The hydrogen production cost and economic benefits are set to improve with this partnership, as PLEXOS will simulate renewable energy supply, PPAs, and market price forecasts to derive the optimal ratings of the electrolyser or power-to-X plant.
