The complementary role of utility-scale battery energy storage systems and bioenergy in future German transportation

The transport sector is experiencing a massive transformation by detaching itself from fossil fuels, resulting in more entanglement and competition among various technologies across the entire supply chain. Unfortunately, solely relying on the electrification of transportation will not be adequate to de-fossilize the whole transport sector; therefore, consuming emission-free alternative fuels will be required. Furthermore, the intermittency of renewable energy sources (e.g., wind and solar) demands extensive investment in energy storage technologies. Thus, this study investigates the mutual impact and the synergy between energy storage technologies and bioenergy in providing flexibility for the German transport sector. To this end, we develop an extended version of the bioenergy optimization model (BENOPTex) that regards various biofuel and synthetic fuel technologies while considering the possibility of storing renewable electricity using utility-scale battery energy storage systems (BESS) in order to achieve low-emission targets set by policymakers. The optimization model maximizes the greenhouse gas (GHG) abatement level until 2050 for various settings, while reporting the total system cost of the respective strategies. Finally, we conduct a sensitivity analysis of the results and exhibit the significance of energy vectors in improving the system's flexibility. Although BESS can improve the GHG abatement level, their exorbitant storage costs make them economically infeasible without considering the intermittency of renewable sources. To make this technology more viable, alternative business strategies must be pursued, such as leveraging the storage capacity of electric vehicles. However, when renewable sources' variability necessitates electricity storage, our optimization model uses stored electricity to produce hydrogen. The outcomes can provide insights for policymakers in developing effective investment strategies.