Othersphere Explorer 101 - Offtakers

Blog
4.26.2024

Ensuring sufficient market demand is essential for any infrastructure project, and hydrogen is no different.

But a key challenge facing project developers today is finding and engaging offtakers for lower GHG hydrogen, especially those willing to sign long-term offtake agreements.

At Othersphere, we're focused on simplifying this complex challenge. Our Othersphere Explorer tool is designed to empower developers by providing instant assessments of potential offtakers accessible from any project site around the globe, and how competitive various hydrogen production technologies will be in serving them.

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🌍 Today

Our tool currently models delivered prices to over 8,000 industrial facilities, including refineries, ammonia plants, methanol plants, ports, and steel mills (yellow points).

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πŸš€ In progress

We are currently adding fueling stations and airports (white points), adding over half a million emerging hydrogen demand locations.

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πŸ” Future

We have a number of other offtaker types queued up for integration, and so please reach out if you have suggestions or simply want to learn about how we source and process this complex data.

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🀝 Collaboration

If you're a project developer or offtaker navigating these challenges, we're here to help. Please reach out to explore@othersphere.io or schedule a demo to learn more.

Source:

Original data source:

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The data provided herein is made available on an "as-is" basis, without warranty of any kind, either expressed or implied. The provider does not guarantee the accuracy, completeness, or usefulness of the information. By downloading this data, the user acknowledges that the provider shall not be held liable for any errors, inaccuracies, or omissions in the data, nor for any damages, losses, or consequences arising from the use, misuse, or reliance on this data. The user assumes full responsibility for the use of the information provided and agrees to use it with caution and at their own risk.

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At Othersphere we are constantly working to make it easier for our users to site, design, and vet infrastructure assets. For example, we recently integrated our Global Land Cost Model 🌍 , which estimates land values globally. This 5-tier ensemble model is trained on terabytes of data, considering factors such as infrastructure, land use, topography, population density, and GDP.

Included within our Explorer tool, this new data helps users more quickly assess one of the many (many) considerations that go into infrastructure developments. In this case, land cost can have a significant impact on project economics, especially for assets with large physical footprints and more modest hardware or operating costs.

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πŸ” The challenge

Equipment sizing and operating strategy LCOH optimizations for hydrogen electrolysis plants are cumbersome and time-consuming. It can take days to weeks to get the data, with each optimization run often taking hours. This limits analytical efforts to a handful of potential sites, leaving many opportunities unexplored.

The result β€” sub-optimal capital allocation and higher risks, with countless missed opportunities.The difference between initial cost calculations versus hourly optimizations can be dramatic, and highlights location as a critical element of project success.

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πŸ›  Our solution

Othersphere has revolutionized this process by combining the power of our underlying spatial economics platform with neural networks for dimensionality reduction and surrogate modeling.

Our global search engine now recommends pre-optimized projects in seconds, having already run an hourly optimization considering:

1) Hourly day-ahead wholesale power market pricing

2) Grid upgrade CAPEX (developed with a global leader in grid transmission engineering and equipment)

3) Grid fees associated with transmission connections

4) Variable stack efficiency by load, incorporating operational ranges

5) System economies of scale, as well as commercial and technical nuances between PEM and alkaline plants

6) Hourly carbon intensity data

7) Demand profiles and cost of storage

8) Co-located renewables CAPEX

9) High-spatial resolution hourly solar and wind capacity factor data

All of this is delivered through the Othersphere Explorer tool, which provides a novel, bottom-up view of potential hydrogen projects, evaluating key factors such as production costs, emissions, available offtakers, and fit with local surroundings.

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Please reach out if you would like to learn more about Othersphere, our products, and opportunities to partner in accelerating global industrial decarbonization.

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