Distributed e-fuel hubs: Concept and case study

This paper introduces the concept of Distributed E-Fuel Hubs (DEFHs), which are small units, highly integrated in their environment and distributed across an area for local e-fuel production. In particular, they aim to take full advantage of local commodities such as unused by-products of local industries or local renewable energy. They can also benefit from local market opportunities, for example, by selling by-products of e-fuel synthesis, such as waste heat, through district heating networks. In addition, because of their distributed nature, DEFHs can reduce transportation costs by being located close to energy demand centers.

We assess the e-fuel production cost of this concept through a techno-economic analysis involving a DEFH synthesizing Fischer–Tropsch liquids, located near a lime plant in Belgium. Our analysis is based on a Linear Programming (LP) model for system sizing and operation planning, using hourly resolution data over one year. We consider a range of scenarios, from a low integrated DEFH with minimal local commodities integration and no by-products valorization, to a highly integrated scenario where the DEFH takes full advantage of local commodities and valorizes all of its by-products. These various scenarios highlight the impact of integration on e-fuel production cost. Our results show that DEFH integration can significantly reduce e-fuel production costs, achieving up to a 45% cost reduction in the highly integrated scenario compared to the low-integrated one.