Quote:
Originally Posted by DoubleK
I'll float you a different idea.
Find a wind developer to partner with and offer them ~$40/MWH for a 200MW windfarm for 20 years. Developer is free to sell offtake credits at their discretion. Any excess electricity produced is returned to the government via Contract for difference scheme like the first REP contracts.
Partner with a company like Linde or Plug Power or whatever company has best of breed electrolysis tech to make green hydrogen. Locate the facility close to some oil and gas processing facility that requires steam and is currently burning Nat Gas to create it. Catch is that processing facility needs to be located somewhere proximal to a sufficient wind resource, Joffre comes to mind.
Grant the process facility the funds to convert to cogen (if not already doing so) and to convert to burn hydrogen, and generate electricity with the waste heat. This would be a market generator so would have to bid into the merit order, otherwise the big generators would scream bloody murder. Investigate installing a second electrolyzer to locate at the facility to utilize undispatched electricity and feed back into the system.
This solves several problems. "Greens" the O&G processing, generates green power and develops the hydrogen know-how.
|
So what increase gets passed on to the consumer in this model, rate payer increases or additional taxes? Also how do you deal with the possibility that they don't reach a certain amount of MW of delivery?