grid energy storage

=energy =global warming =technology

 

 

Here are most of the cheapest grid energy storage systems, with costs per kWh output assuming input energy costs $0.03/kWh, and approximate efficiencies. Note that these are wholesale electricity prices; consumer prices are typically $0.06/kWh higher, with a larger surcharge in some relatively corrupt locales such as California. These estimates include the cost and inefficiency of electricity conversion, and assume 8-hour constant discharge once per day.

If the goal is mitigating global warming, approaches can be compared using CO2 avoidance cost. Replacing natural gas, $100/ton CO2 is ~$0.03/kWh. In general, anything above $100/ton isn't worth considering; reasonable approaches are typically ~$65/ton CO2. At $65, complete mitagation of US CO2 emissions would be about 10% of federal tax revenue, which is probably more than people are willing to spend. As for China, it's willing to spend ~$10/ton.

As such, energy output costs should be <= $0.09/kWh for a method to be worth pursuing, and should be <= $0.07/kWh for a method to be a competitive large-scale CO2 mitigation approach. Anything >$0.09/kWh is only relevant for a small amount of peaking power (if it's cheap per power output) and backup systems for buildings (if it works on that scale and isn't location-dependent) - assuming that cheap natural gas is available.

What if natural gas isn't available? Coal emits ~3x the CO2 per kWh of combined cycle natural gas generation, so we can increase the CO2 mitigation value by $0.04/kWh. If the only alternative to solar + wind + storage is nuclear power, relative costs are unclear: LCOE (levelized cost of energy) for new nuclear plants has a very wide range of estimates, from $0.03 to $0.20/kWh.

One of the more-accurate evaluations of grid energy storage is a government report series funded by the US Department of Energy, hereafter "DOE Reports". Here's the 2020 version, and here's the 2019 version. Some of the below estimates are extrapolated from the DOE Reports.

 

 

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pumped hydro: $0.09 / 80%

This is the main form of grid energy storage today, but the locations are limited to where 2 reservoirs can be made with a substantial height difference. Most good locations are already in use.

In theory, water tanks could be built on mountains, which would make more pumped hydro possible, but that would obviously increase costs significantly, and the economics of pumped hydro are already questionable where cheap natural gas is available.

 

 

diabatic compressed air energy storage (CAES): $0.09 / 60%

In gas turbines, air is compressed, heated by burning natural gas, and expanded. In diabatic CAES, the compressed air is stored for a while first. The amount of electricity output is about 40% more than just burning the natural gas would generate.

This is even cheaper per kWh stored than pumped hydro, but the efficiency is lower.

The cheapest way to store the compressed air is in underground caverns. There are many places where underground space has been made or can be made by solution mining, so the availability of them isn't a major problem, but they do leak a bit of air. Storing it in tanks is too expensive. There was once a startup that got significant funding for CAES in tanks on the basis that the raw materials needed for the tanks aren't too expensive, but that was silly and that startup has failed.

 

 

adiabatic compressed air energy storage (CAES): $0.15 / 60%

Compressing gas increases its temperature. If that heat was stored, CAES could be done without burning natural gas, but storing that heat would increase costs significantly. In theory, the efficiency could be about 70%. In practice, every attempt at doing that commercially has failed, and the cost estimates by proponents have been inaccurate.

Of the companies trying to do this now, Hydrostor seems to have the best approach.

 

 

electrically heated molten salt: $0.17 / 40%

It's possible to use electricity to heat molten salt, then use that heat to run turbines. Malta Inc is a startup using this approach.

Malta claimed to be able to reach 60% efficiency, which is a threshold Breakthrough Energy Ventures set. That's the efficiency of combined cycle gas turbines, which use far higher temperatures than are feasible to use molten salts at, and they will not reach it.

Good efficiency requires high temperatures, but molten salts are corrosive, which makes heat exchangers for them expensive. Higher temperatures make this a bigger problem.

The numbers I'm using here are with a slightly better thermodynamic cycle design than Malta is using, and there's little room for improvement.

 

 

gravitational energy storage: >$0.20 / 85%

There are some startups (such as Energy Vault) trying to store electricity by lifting solid blocks up and down with cranes. If grid energy storage using concrete blocks lifted up 100m towers was done on a large enough scale for 100% renewable energy for the world, the amount of concrete required would be many times the world's annual concrete production. That's a problem, but the bigger problem is that building towers for this is constructing buildings, which is hundreds of times as expensive as the concrete used for them. Estimating construction costs is hard, but I don't expect this to be competitive with water tanks on mountains or LiFePO4.

 

 

hydrogen: ~$0.22 / 40%

This is electrolysis of water to make hydrogen, storing compressed hydrogen in underground caverns, and then using a gas turbine or fuel cell to generate electricity from hydrogen.

The cost assumptions for electrolysis and fuel cells in the DOE Reports are a bit too low. Economically, for large applications, a combined cycle gas turbine is preferable to a hydrogen fuel cell. A better methodology is to look at the cost of hydrogen from electrolysis, adjust that for part-time electrolyzer usage, and consider the efficiency and cost of combined-cycle gas turbines.

 

 

lithium-ion batteries: ~$0.26 / 85%

The battery cost estimates in the DOE Reports are too low, because they're using BloombergNEF survey results, which are heavily weighted towards subsidized Chinese batteries which are only for use in China. The actual batteries are <50% of the initial purchase cost according to the DOE Reports, which reduces the impact of this inaccuracy, but the batteries need replacement more often than other items.

The cycle life of LiFePO4 batteries is pretty good, but the negative side is the same as in other lithium-ion batteries, and the electrolyte slowly decomposes at the negative side, forming a solid SEI layer that gradually increases in thickness. So, the degradation over time is similar to that of other lithium-ion batteries. Part of the reason why the cost estimate for this in the DOE Reports is higher than some other sources is less-optimistic battery life estimates.

One proposed approach is using the batteries of electric cars to store energy. One problem with this is that people don't want to charge their cars according to schedules set by electric power availability. Proposals for things like scheduling dryer usage have the same problem. Another problem is that the current battery technologies with relatively high specific energy are degraded by charging them and discharging them, and the cost of that degradation is greater than the value of the electricity stored. If LiFePO4 batteries are used, then the cycle life is good enough to use them for grid energy storage, but those are also much heavier for the same capacity, and carrying more mass around in cars is bad.

 

 

sodium-sulfur batteries: ~$0.35 / 75%

These are high-temperature batteries with a ceramic (sodium beta-aluminate) between liquid sodium and liquid sulfur. The main problem is that making lots of thin special ceramic with no cracks is expensive; solid-state lithion-ion batteries have the same problem, but even more so.

Sodium, sulfur, and beta-aluminate are probably all optimal, so the prospects for better materials for these are poor, but theoretically the manufacturing costs could be reduced significantly.

 

 

vanadium flow batteries: ~$0.37 / 60%

These used to be a viable backup power solution, because vanadium was cheaper and lithium-ion batteries were more expensive. Regardless of current vanadium prices, there's simply not enough vanadium to use these for grid energy storage. Even if vanadium was cheap, the membranes are also too expensive.

The membranes for these are already made on a large scale for NaOH production, so simply scaling up production isn't enough.

Some other flow battery chemistries have been tried. EnerVault was a company that tried to commercialize iron-chromium flow batteries and went bankrupt. There's also been a relatively large amount of university research on flow batteries, mostly because there are many possible variations of membranes and organic solutes, which makes it easy to find a novel thing to publish. Scientists are incentivized to pretend their ideas are useful industrially when publishing, so it's not easy for non-experts to judge designs based on the scientific literature.

 

 

salinity gradient energy storage: ~$0.40 / 60%

Reverse osmosis uses pressure to remove salt from water. It's possible to store energy that way. The equivalent of 10km of height is possible.

If you look at normal reverse osmosis, the efficiency of this looks bad. However, with a closed system, you can choose salts that cross over membranes much less than NaCl does. With an infinite amount of membrane, the efficiency would then be similar to that of pumped hydro. Unfortunately, the membrane isn't free.

In general, a bit less than half the cost of reverse osmosis is electricity. If you only generate power from it 1/3 of the time, then the equipment costs >3x the value of the electricity used, and less electricity is output than is input. Reverse osmosis is typically 50% efficient; higher efficiency requires even more membrane.

A closed-loop system does reduce the need for pre-filtering water, but still, this doesn't seem economically viable due to the membrane costs. However, if there was a breakthrough in reverse osmosis membrane design or manufacturing, then this could theoretically be viable, but reverse osmosis has already been researched a lot.

 

 

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Looking at the above list, there are multiple conclusions you might come to:

A) Grid energy storage is hopeless, so invest in natural gas production. This is the petrochemical companies' conclusion.
B) Compressed air systems are the closest to viability, so invest in those. This is the DOE's main conclusion.
C) Radically new technology is needed, so invest in something that hasn't been tried before. This is the Silicon Valley investors' conclusion.

 

All of those conclusions are wrong. The correct conclusion is that somewhere in the pile of flow battery research, there are pieces that can be put together and extended into a viable system. Otoro Energy has part of a solution (although their ligand selection is still slightly suboptimal) and I've talked with them, but better membranes are also needed, and no startups are currently working on a good approach for that.

 

 

 

 

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