Feasibility study on a potential pilot plant for SOEC completed

What did you investigate in the project?

To enable the chemical industry in Stenungsund to achieve climate neutrality, large amounts of fossil-free hydrogen will be required. Producing all the hydrogen through electrolysis would demand substantial amounts of electricity, but the current grid capacity in Stenungsund is limited, making less electricity-intensive solutions for hydrogen production essential to explore.

This study examines the technical and commercial feasibility of a pilot plant for high-temperature electrolysis (SOEC) in Stenungsund. It also analyzes various scenarios to understand how SOEC and ammonia cracking can complement each other for large-scale hydrogen production from a techno-economic perspective and enhance supply security.

What were the key findings?

Interviews with stakeholders reveal a growing demand for hydrogen and strong interest in SOEC technology within the industrial cluster in Stenungsund and other industries along the West Coast. A concept for a pilot plant has been developed, primarily based on inquiries made to three suppliers of commercially available SOEC equipment. Two plant sizes were considered—5 MW and 10 MW—with the larger size being preferred due to economies of scale, although the investment cost (CAPEX) was higher than expected.

The study also examines synergies between SOEC and ammonia cracking, showing that integrating these technologies enhances supply security and reduces costs, provided favorable agreements for ammonia and electricity are in place. The integrated system’s hydrogen production cost (LCOH) ranges from €3.7 to €6.5 per kg, depending on ammonia and electricity prices. A comparison between SOEC and ammonia cracking as separate technologies for meeting Stenungsund’s future hydrogen demand indicates that very low ammonia prices are required for ammonia cracking to be economically competitive with SOEC, assuming the corresponding electricity and steam requirements for SOEC are available.

How can the results be utilized moving forward?

To advance the project for an SOEC pilot plant, a sustainable business case is required. This involves securing funding, exploring partnerships, and continuing dialogue with the grid operator regarding expanded grid capacity.

Given the importance of low hydrogen production costs to encourage stakeholders to develop their operations, future studies should explore ways to improve the plant’s profitability. This could include utilizing the oxygen stream, generating revenue from ancillary service markets, and managing conditional grid connections. Additionally, addressing the challenge of integrating existing fuel gas into current processes will support increased hydrogen usage and strengthen the project’s feasibility. These steps are crucial for ensuring the project’s economic and technical viability.

Project partners were RISE, Vattenfall, Chalmers, Uniper, Borealis and Preem.