Marketing the flexibility of a power-to-heat unit

Site visit at LUKOIL Lubricants
June 12, 2024

With our state-of-the-art software solution 'CyberNoc', LUKOIL is substituting oil for green electricity while earning money and cutting fuel consumption at the same time. Our customer is one of the world's largest international vertically integrated oil and gas companies, operating in more than 30 countries globally. 

With their power-to-heat unit and through CyberGrid's flexibility management platform, operated by EVN trading desk, they will participate in the electricity markets, providing ancillary services to the grid and benefiting from additional revenue streams. This strategic approach offers several benefits, including improved efficiency, sustainability, and profitability.  

By effectively managing flexibility, we help energy-intensive industry clients, like oil and gas companies, to navigate the complexities of the energy markets, profiting from substituting oil with electricity. CyberGrid supports the transition to a more sustainable energy model, making the green visions of our clients a commercial success.  

“The main target is to receive a large amount of electric power via the automatic Frequency Restoration Reserve (aFRR), also known as secondary reserve. This is a reserve in the power grid that helps to keep the grid frequency stable. The electric power will be transformed to thermal power by the power to heat unit.” - Martin Resch, Head of Production at LUKOIL Lubricants Company.  

Q: Can you briefly describe EVN and PBEG’s role in the project?

A: EVN is the parent company of CyberGrid and PBEG is our long-term partner company since more than 15 years. They have a lot of experience on renewable energy projects and on energy trading. PBEG gives support on our DCS System, which is controlling the whole plant, since a very long time. Additionally, they take care of more than 75% of the biogas plants in Austria. They give support to different types of plants to allow the participation on the grid balancing market (aFRR).

Q: What kinds of assets are under your control and operation?

A: It’s a 400kW Power to Heat Unit. The unit is variable controlled and can handle setpoints in the range of 0-400kW. The maximum output capacity delivered by the power-to-heat unit is 400kW on electric power and ~400kW on thermal power. The unit is fully scalable in the range up to 400kW and can deliver thermal energy within a half-minute.

Q: How do you envision this partnership benefiting your business?

A: The P2H unit is used to receive cheap electric power from the grid without grid cost. Besides that, we can use the unit to transform surplus energy from our 1MWP plant into thermal energy. In the near future, we plan to have a battery system, which we will use to participate on the aFRR market. Additionally, we can store surplus energy on the battery storage system from our PV-plants.

Q: How does your power-to-heat unit contribute to reducing carbon emissions?

A: Lukoil has a very strong focus on renewable energy sources since years. We have a 1MWp PV-installation on our roofs. 60% of the electrical power is used for the production itself. Besides that, the office building is supplied with thermal power by a woodchip heating system.

About Lukoil

LUKOIL ranks among the largest publicly traded, vertically integrated oil and gas companies globally, with operations in over 30 countries. The company employs over 100,000 people, and is dedicated to sustainable growth, emphasizing socio-economic and environmental development. LUKOIL's operations are guided by stringent environmental standards and a commitment to ethical business practices, aiming to balance resource development with community well-being and environmental stewardship​.

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