1st Dec 2016 10:15
LONDON (Alliance News) - ITM Power PLC on Thursday said the European Union directives regarding clean energy announced on Wednesday will have a "significant effect" on the uptake of power-to-gas energy storage and green hydrogen fuel made by electrolysis across Europe.
Under the EU directives, a new definition of energy storage was supplied, specifically including the conversion of electricity to another energy carrier such as hydrogen. Previous definitions had been restricted to power-in/power-out storage, but the new definition facilitates the adoption of the power-to-gas approach.
ITM Power said this will enable power-to-gas plants and electrolyser hydrogen refuelling stations to offer storage facilities to the electricity market, while selling hydrogen to the mobility and gas sectors.
"It will broaden understanding of the needs of a flexible power system and dissuade the electricity industry from thinking only in terms of power-to-power storage," ITM said.
In addition, ITM said a "level playing field" can allow players to participate in providing flexibility services to the grid operator. Electrolysers will be able to be instructed by grid operators to provide up/down response for grid services and will receive balancing services payments across the EU, ITM noted.
Finally, the extension of the 'guarantee of origin' scheme to renewable gases including hydrogen will mean consumers can be confident that they are using low-carbon gas. The 'guarantee of origin' scheme had previously only been in place for renewable electricity and renewable heating/cooling.
"These new EU directives are fundamentally important for unlocking the potential of rapid response grid balancing using electrolysis and for the deployment of power-to-gas energy storage across Europe. The guarantee of origin scheme also differentiates green hydrogen as a fuel for transport," Chief Executive Graham Cooley said in a statement.
Shares in ITM were trading up 2.1% at 24.25 pence on Thursday.
By Karolina Kaminska; [email protected]; @KarolinaAllNews
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