Profas Energy Consult and Energy Exemplar Collaborate to Optimize Hydrogen Value Chain Using PLEXOS

Profas Energy Consult, a leading German hydrogen and energy transition consulting firm, has joined forces with Energy Exemplar to leverage their advanced modeling software platform, PLEXOS, in order to enhance the modeling of the hydrogen value chain. This pioneering partnership aims to optimize hydrogen and power-to-X projects by utilizing cutting-edge modeling capabilities, a significant advancement from the previous reliance on basic spreadsheet models.

As the hydrogen market is still in its early stages, the need for sophisticated modeling has become imperative. The complexity of multiple technology options, renewable weather scenarios, and optimal integration within the grid requires a more comprehensive and accurate approach to modeling for project profitability.

The collaboration between Profas Energy Consult and Energy Exemplar will bring together their expertise in hydrogen and modeling to introduce transparency to value flows in hydrogen projects, facilitating simplified investment decision-making processes. The partnership will develop state-of-the-art project and asset models to simulate hydrogen projects and their commercial impact in the energy market.

The specialized “hydrogen-only” PLEXOS software has a wide range of potential use cases, including modeling cost-minimized power supply from volatile renewable energy sources, optimizing power purchase agreements, analyzing energy market trading effects, and evaluating the value of ancillary services. The modeling capabilities will be particularly appealing to hydrogen and power-to-X project developers, as well as financial institutions and investors.

Armin Schnettler, Managing Director of Profas Energy Consult, highlighted the importance of optimizing the Power-to-X value chain by taking into account various factors such as operating models, degradation effects, and maintenance efforts. These considerations enable the calculation of financial data over the desired lifetime of the project, including revenues and cash flows.

Michael Schneider, SVP and Head of EMEA at Energy Exemplar, emphasized the significance of simulating renewable energy supply and volatility, power purchase agreements, market price forecasts, and different hydrogen technology options. The objective is to derive optimal ratings for electrolyzers and power-to-X plants, ensuring the lowest cost of hydrogen production and maximizing economic benefits.

This collaboration comes at a critical juncture in the global energy transition, with the acceleration of the “green” hydrogen economy facilitating the decarbonization of hard-to-electrify sectors. More than 1,000 renewable and low-carbon hydrogen projects requiring a total investment of $320 billion by 2030 have been announced worldwide.

As global electricity demand is expected to triple by 2030, smart electrification and effective hydrogen usage will play vital roles in integrating renewable energy sources, as stated in the International Renewable Energy Agency’s 1.5C scenario.

PLEXOS has established itself as the leading simulation and optimization platform for market players seeking to make intelligent decisions by processing and extracting insights from vast amounts of data.

Energy Exemplar and Profas Energy Consult aim to deliver the first dedicated “hydrogen” tool chain based on PLEXOS by Q4 of 2023. They plan to complete the power-to-X value chain simulation models by 2024.

 

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