HYDROGEN DESIGN COMPETITION 2017

DESIGN A POWER TO GAS SYSTEM

Power To Gas Solar Generation to Develop Future

Hydrogen Industries in Moquegua, Peru

Team Members Enzo Ochoa Energy Engineering Student

Alejandra Valdivia Energy Engineering Student

Claudia Ames chemical Engineering Student

Luz Cirineo Chemical EngineeringStudent

Faculty Advisor Dr. José Ramos-Saravia

Executive Summary

The environmental impact produced by conventional fuels is a problem of great concern at

present. Likewise, the traditional fuels used in Peru are from non-renewable energy sources,

therefore new alternatives must be sought to generate low emission energy and renewable

sources. A great alternative is hydrogen, which can be obtained from renewable energy and

water. Hydrogen, due to its high calorific value, is more efficient to produce thermal energy

than traditional fuels. In addition, the only products emitted after combustion are water and

oxygen resulting in zero carbon emissions to the environment. For these reasons, hydrogen

is now considered as an important fuel and with a high potential for development in new

markets.

The development of our project is located in the province of Mariscal Nieto, department of

Moquegua, whose altitude is 1410 meters above sea level. These locations were selected

due to their high potential in renewable energy resources such as solar and wind energy.

Likewise, an increase in the demand for energy, oxygen and demineralized water is

projected for future projects of mineral smelting and mining processes.

The first objective is to design a system that uses electrical energy to produce hydrogen,

such as:

- Energy storage (Backup) for Smelter of Ilo that is part of the company Southern Peru

Cooper Corporation (SPCC).

- Fuel for transportation (Natural Gas + Hydrogen) for Smelting and Mining Processes

of Southern Peru Cooper Corporation (SPCC)

- Auxiliary services (Provide desalinated water and Demineralized water) to cover the

shortage of water resources of the department.

A contract will be made with the Panamericana Solar S.A.C. who is the concessionaire of

the solar park called "Panamericana Solar". The park has the technology of photovoltaic

solar generation of mobile modules. It has an installed capacity of 20 MW and an investment

of 94 588 MM $ [1]. Currently, it delivers a power of 16 MW to the National Interconnected

System (SEIN). The electric connection supply point is located at the Ilo ELP bar of 138kv

and the price of the offered energy is 0.215 $ / kwh.

A contract will be made with the company Fenosa, which is present in the cities of Arequipa,

Moquegua, Ilo and Tacna, which together generate 18% of Peru's GDP (excluding Lima).

The urban population is more than 1,500,000 inhabitants and 358 thousand homes, as well

as a fleet of more than 93 thousand vehicles. This area is characterized by having important

industrial developments including Smelting and Mining. Therefore Fenosa will be the

supplier of Natural Gas that will be used to enrich hydrogen.

Table of contents

Executive Summary 1

Table of contents Error! Bookmark not defined.

Sitting and local problematic 3

Future Energy Demand 3

Water Stress 4

Environmental Contamination 5

Transport and commercialization of Natural Gas 5

Propuesta de solución 5

Ubicación de la Planta 6

Layout 7

Design Data and Equipment Drawings 8

First Subsystem: Desalination 8

Second Subsystem: Electrolysis 8

Third Subsystem: Hydrogen Enrichment of Natural Gas 8

Fourth System: Backup Energy with fuel cell 9

Cost and Economics 9

Safety Analysis & Codes and Standards 10

Internacional

Operation and Maintenance 10

Environmental Analysis 10

Huella de carbono 11

Policy/Regulatory Analysis

National 11

References 12

Solar Park

Ilo Copper Smelter

Electrolysis Plant

20 km

I. Sitting and local problematic

In this section, mining activity and copper smelting in the city of Ilo are shown as the main industries

that project positive growth in the demand for energy, backup energy systems and water for its

internal process. The city of Ilo is located in the department of Moquegua, south of Peru. The

reasons for the selection of this city is explained in the following paragraphs where the local

problematic and utility are shown. Location of Copper Smelter and Solar Park is shown in figure.

FIG.1. Location of the plant, city of Ilo, department of Moquegua.

A. Future Energy Demand

In the period between 2003 and 2013, the electricity production increased by 92%, while

hydrocarbon production increased by 260%. During the same period, national final consumption of

these energy resources increased by 92% for the electricity sector and 100% for both liquid

hydrocarbons and natural gas. This percentages show that this period is said to be the mayor growth

in economic activity and energy demand in the last decades.

Also, mining activity in Ilo has increased notably and well established mining companies have

invested in expansion projects. Such is the case of Southern Peru Copper Corporation (SPCC), a

mining company that has invested $ 1,200 million in the Toquepala Expansion Project (Peru-

Moquegua) to increase copper production capacity in 100,000 ton per year. Likewise, is projected to

increase the production in 2019 reaching 260,000 ton/year. However, it was calculated that cost of

energy consumption amounts to 60% of total mining production cost. Hence, an increase in energy

demand is estimated, growing from 388 MW in 2016 up to 534 MW in 2019.

The SPCC has a smelter located in the outside of Ilo, approximately 17 km north of Ilo, as is shown in

figure 2 (FIG.2. ), the smelter receives energy supply from the Ilo1 Electric Substation. On the

western side of the city, a Solar Energy Power Plant “Panamericana Solar” operates 1.190 km from

the Ilo Smelter and belongs to the private company Panamerica Solar S.A.C. The Solar Park

technology is supplied in mobile modules and has a installed power of 20 MW whose investment

was of 94 588 MM $.

However, the plant delivers a power of 16 MW to the National Interconnected System (SEIN, for its

Spanish initials), which means the plant is not working at its maximum capacity. Also, at this time,

SEIN is at oversupply of energy, this excess of energy can be storage in form of hydrogen gas from

water electrolysis. Furthermore, the energy stored shall be used in backup energy systems.

FIG.2. Expansion project Southern Copper Corporation

[https://www.convencionminera.com/perumin31/encuentros/topmining/miercoles18/16

00-oscar-gonzales.pdf ]

A. Water Stress

Availability of water resources in the department of Moquegua, Ilo has been reduced due to new to

new weather conditions. Against this backdrop, National Water Authority (ANA, for its Spanish

initials) has implemented a new contingency plan for water deficit risk in Moquegua-Ilo watershed.

From the industrial side, this situation also affects many industries that request for water in their

internal process. Such is the case of the Ilo Smelter, where heat exchangers need around 11 000

m3/h of water to operate.

B. Environmental Contamination

Even though our country has a high potential for renewable energy , natural gas and oil still

constitute 46.88% of total fuel production in Peru. This fact, together with oil importations, shows

that Peru is still dependent from fossil fuels to satisfy energy demand in the country. Also,

combustion of fossil fuels has an enormous impact in carbon dioxide emissions (CO2), being liquid

hydrocarbons the ones which produce the most quantity of CO2 [7].

C. Transport and commercialization of Natural Gas

Currently, a gas pipeline transports Natural Gas from Cusco (south countryside of Peru) to Lima

(central coast) and future pipelines are projected to be constructed to deliver natural gas to all

regions of the country. In 2005, the first Natural Gas pipelines where constructed in Lima and by

2010, around 30 thousand residential consumers where satisfied. In the south, Natural Gas is arrives

from Lima in form of Natural Gas Liquified (GLP), then four cities in the south were selected to have

its own regasification plant, where it is converted back to its gas form and delivered through the new

gas pipeline within the city. Ilo regasification plant is located in the southeast side of the city. Fenosa

Company is the concessionary company in charged of distributing and commerzialiting the Natural

Gas in pipelines in the south of the country.

FIG.3.TRANSPORTATION AND DISTRIBUTION OF NATURAL GAS

II. Proposed Solution

A. Plant location

FIG.4. PLANT LOCATION (3D)

The dimension of the plant is about 1500 m2. It will be divided in different sections, those are:

Desalination plant, Electrolysis plant, Storage and distribution of products and subproducts , the fuel

cell backup and mixer of natural gas and hydrogen which will be result as hydrogas as the main

product destined for the Ilo Thermoelectric Plant.

FIG.5. Measures of the area destined to the installation of the plant which borders the

highway Costanera Nte.

A. Layout

FIG. 6. DESIGN OF THE PLANT, DRAWING IN AUTOCAD.

III. Design Data and Equipment Drawings

The power plant is composed in four subsystems, these subsystems are developed in the following

paragraphs.

A. First Subsystem: Desalination

A Reversed Osmosis (RO) water desalination is a technology already used in the Southern Peru

Company. Currently, the company has two desalination plants in operation which produce 110m3/h

in total of sweet water. This water is used in the oven ISASMELT for the smelting copper process in

the Smelter of Ilo. Likewise, our team proposes the addition of a new desalination module to

sufficient the water consumption from the electrolysis subsystem.

For the water desalination process, a PS-RO 1018 was chosen. This module will have a capacity of

1000 - 1800 L/day of sweet water.. The technology used is RO and is capable of reducing up to 40

000 ppm of TDS, this way the output water is near demineralised. This desalination module was

chosen due to the purity of its output water. Water purity was considered for the correct operation

of the electrolyzer, which will use the produced demineralised water, in order to avoid component

damages. Another desalination technologies is distillation.

FIG. 7. DESIGN OF THE PLANT DESALINATION

B. Second Subsystem: Electrolysis

In order to supply energy for all the electricity consumption, Desalination and Electrolysis

subsystems, a contract of 4 MW will be formed with the company Panamericana Solar S.A.C. The

Solar Energy Power Plant “Panamericana Solar” was selected as the renewable energy supplier. The

Solar Park technology is supplied in mobile modules and has a installed power of 20 MW whose

investment was of 94 588 MM $ [10]. At this time, the plant delivers a power of 16 MW to the

National Interconnected System (SEIN). The point of offer of the electric connection is located in the

Barra Ilo ELP of 138 kv and the price of the power bid is 0.215 $kWh.

For the electrolysis process, the HyStat 10 was chosen, it has a water storage capacity of 10 m3, with

these specifications the energy consumed is calculated which is 4,9 kWh. This way, this power

installed and 10 m3 of water the electrolyzer will produce 10Nm3/h of hydrogen with a purity of

99,8 % .

C. Third Subsystem: Hydrogen Enrichment of Natural Gas

The Natural Gas Enrichment will be made by the Natural Gas Mixer. The gas produced will be natural

gas blended with up to 10 v/v% hydrogen. The calorific value of the Natural Gas supplied by Fenosa

Company is 11,7 kwh/m3. Finally, the blending of Natural Gas and Hydrogen shall be named

Hidrogas. The final product will have a calorific value of 1267,4. The results of the proprieties of the

produced Hydrogas were calculated by the software Promax y Bryan Research & Engineering, LLC.

FIG.8. Hydrogas Production_Bryan Research Promax Simulation

FIG.9. Hydrogas Properties

FIG.10. Conceptual Design of the system.

IV. Cost and Economics

Initial Investment

Item Inventory Cost $/ Units Units Total

1 Seawater $0.500 10000 m3 $5,000

2 Desalinization module $10,093.570 1 unit $10,094

3 Seawater Storage $20,000.000 1 unit $20,000

4 Transport $100,000.000 1 unit $100,000

5 Electrolyser $227,088.000 1 unit $227,088

6 Hydrogen Storage $5,000.000 20 unit $100,000

7 Gas Natural ($/MMBTU) $2.848 406967 MMBTU $1,159,042

8 Natural Gas Storage $10,000.000 2 unit $20,000

9 Compresor $10,000.000 3 unit $30,000

10

Natural Gas + Hydrogen =

Hydrogas $10,000.000 2 unit $20,000

11 Hydrogas Storage $30,000.000 2 unit $60,000

12 Natural Gas Package $25,000.000 2 unit $50,000

13 Balones de Gas (10kg) $13.000 3000 unit $39,000

14 Ground of the plant $100.000 15000 m2 $1,500,000

16 Equip Fuel Cell $34,000.000 10 unit $340,000

17 Energy Consume $/kwh $0.215 8760000 kwh $1,883,400

15 Installation $1,105,376

Investment $6,669,000.00

Sales Analysis 1st Year

SALES

Form of Product Price Units

Quantity

Hydrogen (m3)

Quantity

NG (m3)

Hydrogas

Sold (m3) Total ($)

Container

>200m3 5.10

$/m3 120000 1200000 1,320,000 $ 6,732,000.00

Container

<200m3 7.14

$/m3 120000 1200000 1,320,000 $ 9,424,800.00

Premium Gas

10kg (GN + H) 3.03

$/m3 240000 2400000 2,640,000 $ 7,999,200.00

Standar Gas

10kg (GN + H) 2.53

$/m3 120000 1200000 1,320,000 $ 3,333,000.00

- 600000

Oxygen (O) 0.18 $/m3 300,000 $ 54,540.00

Water 0.02 $/m3 900,000 $ 18,180.00

Total Sales $ 27,561,720.00

Costs Analysis 1st Year

COST

Price Units

Quantity

Hydrogen

(m3)

Quantity

NG (m3)

Quantity

Sales (m3) Total ($)

Container

>200m3 4.75 $/m3 120000 1200000 1,320,000 $ (6,270,000.00)

Container<20

0m3 6.65 $/m3 120000 1200000 1,320,000 $ (8,778,000.00)

Premium Gas

10kg (GN + H) 2.85 $/m3 240000 2400000 2,640,000 $ (7,524,000.00)

Standar Gas

10kg (GN + H) 2.38 $/m3 120000 1200000 1,320,000 $ (3,135,000.00)

- 600000

Oxygen (O) 0.17 $/m3 300,000 $ (51,300.00)

Water 0.02 $/m3 900,000 $ (17,100.00)

Total Cost $ (25,775,400.00)

Total Sales - Total Cost = Total Profit $ 1,786,320.00

Analysis of VAN, TIR in 15 years

Annual Cost and Income Chart

Time Cost Income Profit % Price

Variation Time (Years) $ $ $

0 ($6,669,000.00) $ - ($6,669,000.00)

1 ($25,775,400.00) $ 27,561,720.00 $ 1,786,320.00 0%

2 ($26,033,154.00) $ 27,837,337.20 $ 1,804,183.20 1%

3 ($26,548,662.00) $ 27,837,337.20 $ 1,288,675.20 1%

4 ($26,290,908.00) $ 27,837,337.20 $ 1,546,429.20 1%

5 ($25,775,400.00) $ 27,837,337.20 $ 2,061,937.20 1%

6 ($25,259,892.00) $ 27,010,485.60 $ 1,750,593.60 -2%

7 ($24,486,630.00) $ 26,734,868.40 $ 2,248,238.40 -3%

8 ($23,971,122.00) $ 25,632,399.60 $ 1,661,277.60 -7%

9 ($25,002,138.00) $ 26,734,868.40 $ 1,732,730.40 -3%

10 ($25,259,892.00) $ 27,286,102.80 $ 2,026,210.80 -1%

11 ($25,775,400.00) $ 28,664,188.80 $ 2,888,788.80 4%

12 ($26,033,154.00) $ 28,939,806.00 $ 2,906,652.00 5%

13 ($26,290,908.00) $ 28,388,571.60 $ 2,097,663.60 3%

14 ($26,548,662.00) $ 27,561,720.00 $ 1,013,058.00 0%

15 ($26,806,416.00) $ 27,286,102.80 $ 479,686.80 -1%

Total ($392,526,738.00) $ 413,150,182.80 $ 20,623,444.80

Calculation of Net Present Value (NPV) and Internal Rate of Return (IRR)

Calculation del NPV:

Pasive interest rate (COK): 15% per year

Period: 15 years

NPV $3,850,944.06

NPV > 0. The project is feasible

Cálculo del IRR:

IRR COK

25.7% > 15%

The project is viable

V. Safety Analysis & Codes and Standards

A. International

NFPA 10: Standard for Portable Fire Extinguishers.

NFPA 55: Compressed Gases and Cryogenic Fluids Code.

NFPA 55 - National Fire Protection Association.

NFPA 853: Standard for the Installation of Stationary Fuel Cell Power Systems, 2015 Edition.

ANSI/CSA FC 1-2014 - Fuel cell technologies - Part 3-100: Stationary fuel cell power systems -

Safety (Adopted IEC 62282-3-100:12, first edition, 2012-02 with U.S. deviations).

CGA P-1: Safe Handling of Compressed Gases.

ASTM D760 Standard Practice for Sampling of High Pressure Hydrogen and Related Fuel Cell

Feed Gases.

National Fire Protection Association (NFPA) 2 Hydrogen Technologies Codes 2. ISO Draft

International.

Standard (DIS) 26142 Hydrogen Detection Apparatus.

International Building Code (International Code Council, 2009)

VI. Operation and Maintenance

A. Electrolyzer

Life expectancy of the electrolyzer is estimated to be __ years considering __. After this period of

time, cost of replacement or maintenance service is equivalent to _% of the original cost, this service

will be coordinated with Hydrogenics. HyStat 10 electrolyzer was chosen due to its integrated design

which includes a purification system, closed loop refrigeration system, feed water treatment. Also,

the electrolyzer posses operational autonomy because this equipment is driven by a control panel,

which converts it into a whole autonomous unit.

A. Desalination Module

Daily use of the desalination module brings benefits to the maintenance of the equipment because,

while is operating, it prevents the accumulation of salts and minerals that sea water brings. For this

reason, life expectancy of the desalination module is 3 to 5 years and the equipment maintenance is

only membrane cleaning with chemicals.

VII. Environmental Analysis

FIG.11. National CO2 EMISSIONS

In 2014, more than 161, 000 gigagrams of COe were calculated to be produced in the country. Peru,

as many countries, is witness of alarming effects that Greenhouse Emissions have on the earth,

which urges us to develop new sustainable energy sources. For this reason, our plant was designed

to have a zero direct emission impact in the production of hydrogen. Desalination and electrolysis

will consume solar energy. Hence, the consumption of hydrogen in the fuel cells installed in the SPCC

Ilo Smelter will have no emissions. Currently, SPCC has a contract for 240 MW that proceeds from a

hydroelectric and a thermal power plant. However, when the energy consumed exceeds energy

supplied, the company needs to buy more energy from the national grid SEIN. With the backup

energy system, the mining company will not need to consume energy from the national grid and

Carbon Dioxide emissions will be reduced.

For the production of Enriched Natural Gas, tanks will transport the natural gas to the hydrogen

production plant and after the enrichment process the new gas will be transported to the thermal

power plant. The type of fuel consumed will depend on the type of tank. However, a vehicular fuel

emission factor is detailed in the following table.

Emissions kg CO2

GLP 6,326907019

Gas Natural 1,615544366

Emissions kg CH4

GLP 0,0005013397004

Gas Natural 0,0001439879114

Emissions kg N2O

GLP 0,00001002679401

Gas Natural 0,000002879758228

FIG.12. Calorific Value

VIII. Policy/Regulatory Analysis A. National

Law 29783 – (Ministry of Labour) Law on Safety and Health at Work.

DS 005-2012-TR (Ministry of Labour) Act Regulations on Safety and Health at Work.

RM N111-2013-MINEM (Ministry of Energy and Mines) Electrical Safety Regulation.

RM 161-2007-MINEM (Ministry of Energy and Mines) Electrical Safety Regulation.

Law 26896 – Evaluation Environmental Impact.

Law 27314 – Law solid waste handling.

National Building Regulations of Perú.

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Universidad de Ingenieria y Technologia Final Submission Links

https://www.youtube.com/watch?v=-aEbZ8A6Z_E&feature=youtu.be