Hydrogenics Corporation, a leading developer and manufacturer of hydrogen generation and hydrogen-based power modules, was selected by the Independent Electricity System Operator (IESO) for Ontario as one of five grid storage projects. The Hydrogenics project, which will use PEM electrolyzers in a Power-to-Gas system, will deliver 2MW of storage capacity and be located in the Greater Toronto Area.
Hydrogenics will supply the facility’s next-generation PEM electrolyzers and is partnering with Enbridge Inc. to develop, build and operate the energy storage facility to provide regulation services to the IESO under contract.
We are very excited to have been awarded this Power-to-Gas project, the first of its kind in North America. We have already experienced the positive impact of having a highly visible reference site with E.ON in Germany, and our partnership with Enbridge will make this application an excellent reference site closer to home. We appreciate the leadership of the Ontario Ministry of Energy to invest in clean energy storage technologies and the IESO for providing this platform for energy innovation.—Daryl Wilson, CEO of Hydrogenics
IESO will finalize contracts with Hydrogenics and the four other organizations by the end of the summer.
|IESO grid storage projects|
|Canadian Solar Solutions Inc.||Battery||4|
|Convergent Energy and Power LLC||Battery
|Dimplex North America LTD||Thermal||0.74|
The IESO issued a request for proposals in March for up to 35 MW of storage capabilities to provide:
regulation service which acts on a second-to-second basis to match generation to demand and helps correct variations in power system frequency; and/or
reactive support and voltage control which are needed to maintain voltages and support the flow of electricity along power lines.
These projects were evaluated on numerous criteria including cost, diversity of technology options, and geographic location. While most of projects will be connected to the high-voltage transmission grid, the selection criteria also included a requirement for some projects to be connected to local distribution networks.
The cost of these contracts is expected to be approximately $14 million per year for three years and is very competitive relative to comparable storage projects.