A power-to-methanol-based chemical industry system-aided decarbonization approach for power distribution networks

Zhixue Yang, Hui Li and Hongcai Zhang

Applied Energy, 2025, vol. 384, issue C, No S0306261925001254

Abstract: Renewable hydrogen-based chemical industry systems hold great promise for decarbonizing the power grid by facilitating the integration of renewable energy and carbon dioxide utilization. However, effectively leveraging the regulation potential of power-to-hydrogen-to-methanol-based chemical industry systems for decarbonizing the power grid presents an interdisciplinary challenge. This involves intricate carbon dioxide trading, as well as modeling and optimization of the hydrogen-based chemical industry network (CIN). This study proposes a power-to-hydrogen-to-methanol-based CIN-aided method for decarbonizing power distribution networks. Initially, we propose an approach to optimize carbon and electricity demands from CIN, guiding carbon procurement through marginal carbon dioxide pricing. This approach determines time-varying prices for carbon dioxide commodities with a clear physical interpretation, integrating duality theory and the Karush–Kuhn–Tucker condition. Subsequently, we design a precise CIN with dynamic operational capabilities and formulate an optimal mass flow model to enhance the CIN’s interaction with the power grid. Finally, numerical experiments conducted on 33-bus and 141-bus test systems confirm that our proposed method reduces carbon emissions by 5%–10% through coordinated interaction, carbon dioxide pricing, and modeling of CIN.

Keywords: Renewable methanol; Power to hydrogen; Marginal carbon dioxide price; Chemical industry network; Decarbonization (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1016/j.apenergy.2025.125395

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