Grid-Scale Hydrogen Energy Storage : A Techno-Economic Cost-Benefit Analysis for Sweden

The transition to a 100% renewable-based energy system in Sweden requires investments in large-scale energy storage to balance the variable output from renewable energy sources. Currently, many energy storage technologies exist and their feasibility and effectiveness needs to be critically evaluated for every particular location with different sets of parameters. Underground hydrogen storage has been suggested by many researchers as one such viable option. This study explores the potential costs and benefits of developing the technological framework and investing in a grid-scale hydrogen energy storage, from the point of view of electricity distribution system operators in Sweden. A tool called StorageVET was used for the analysis, to simulate three potential scenarios for the implementation of hydrogen energy storage in Sweden, such as: a) offshore underground storage in saline aquifers; b) underground storage in geological formations onshore; and c) liquid hydrogen storage in large steel vessels on land. All three scenarios were calculated to have a NPV of just over $100 million, for the specific parameters selected, suggesting that investing in hydrogen energy storage could be economically feasible for the case of Sweden. It is believed that this work would lead to increased focus on hydrogen as a grid-scale energy storage technology and to further detailed feasibility evaluation studies by distribution system operators and energy researchers