Policy & Socio-Economics
Optimising Air Quality Co-benefits in a Hydrogen Economy: A Case for Hydrogen-specific Standards for NOx Emissions
Jun 2021
Publication
A global transition to hydrogen fuel offers major opportunities to decarbonise a range of different energyintensive sectors from large-scale electricity generation through to heating in homes. Hydrogen can be deployed as an energy source in two distinct ways in electrochemical fuel cells and via combustion. Combustion seems likely to be a major pathway given that it requires only incremental technological change. The use of hydrogen is not however without side-effects and the widely claimed benefit that only water is released as a by-product is only accurate when it is used in fuel cells. The burning of hydrogen can lead to the thermal formation of nitrogen oxides (NOx – the sum of NO + NO2) via a mechanism that also applies to the combustion of fossil fuels. NO2 is a key air pollutant that is harmful in its own right and is a precursor to other pollutants of concern such as fine particulate matter and ozone. Minimising NOx as a by-product from hydrogen boilers and engines is possible through control of combustion conditions but this can lead to reduced power output and performance. After-treatment and removal of NOx is possible but this increases cost and complexity in appliances. Combustion applications therefore require optimisation and potentially lower hydrogen-specific emissions standards if the greatest air quality benefits are to derive from a growth in hydrogen use
Evaluation of Zero-Energy Building and Use of Renewable Energy in Renovated Buildings: A Case Study in Japan
Apr 2022
Publication
Following the Paris Agreement in 2015 the worldwide focus on global warming countermeasures has intensified. The Japanese government has declared its aim at achieving carbon neutrality by 2050. The concept of zero-energy buildings (ZEBs) is based on measures to reduce energy consumption in buildings the prospects of which are gradually increasing. This study investigated the annual primary energy consumption; as well as evaluated renewed and renovated buildings that had a solar power generation system and utilized solar and geothermal heat. It further examines the prospects of hydrogen production from on-site surplus electricity and the use of hydrogen fuel cells. A considerable difference was observed between the actual energy consumption (213 MJ/m2 ) and the energy consumption estimated using an energy simulation program (386 MJ/m2 ). Considerable savings of energy were achieved when evaluated based on the actual annual primary energy consumption of a building. The building attained a near net zero-energy consumption considering the power generated from the photovoltaic system. The study showed potential energy savings in the building by producing hydrogen using surplus electricity from on-site power generation and introducing hydrogen fuel cells. It is projected that a building’s energy consumption will be lowered by employing the electricity generated by the hydrogen fuel cell for standby power water heating and regenerating heat from the desiccant system.
Impacts of Greenhouse Gas Neutrality Strategies on Gas Infrastructure and Costs: Implications from Case Studies Based on French and German GHG-neutral Scenarios
Sep 2022
Publication
The European Union’s target to reach greenhouse gas neutrality by 2050 calls for a sharp decrease in the consumption of natural gas. This study assesses impacts of greenhouse gas neutrality on the gas system taking France and Germany as two case studies which illustrate a wide range of potential developments within the European Union. Based on a review of French and German GHG-neutral scenarios it explores impacts on gas infrastructure and estimates the changes in end-user methane price considering a business-as-usual and an optimised infrastructure pathway. Our results show that gas supply and demand radically change by mid-century across various scenarios. Moreover the analysis suggests that deep transformations of the gas infrastructure are required and that according to the existing pricing mechanisms the end-user price of methane will increase driven by the switch to low-carbon gases and intensified by infrastructure costs.
A Recent Review of Primary Hydrogen Carriers, Hydrogen Production Methods, and Applications
Mar 2023
Publication
Hydrogen is a promising energy carrier especially for transportation owing to its unique physical and chemical properties. Moreover the combustion of hydrogen gas generates only pure water; thus its wide utilization can positively affect human society to achieve global net zero CO2 emissions by 2050. This review summarizes the characteristics of the primary hydrogen carriers such as water methane methanol ammonia and formic acid and their corresponding hydrogen production methods. Additionally state-of-the-art studies and hydrogen energy applications in recent years are also included in this review. In addition in the conclusion section we summarize the advantages and disadvantages of hydrogen carriers and hydrogen production techniques and suggest the challenging tasks for future research.
Ammonia: Zero-carbon Fertiliser, Fuel and Energy Storage
Feb 2020
Publication
This briefing considers the opportunities and challenges associated with the manufacture and future use of zero-carbon ammonia which is referred to in this report as green ammonia. The production of green ammonia has the capability to impact the transition towards zero-carbon through the decarbonisation of its current major use in fertiliser production. Perhaps as significantly it has the following potential uses: • As a medium to store and transport chemical energy with the energy being released either by directly reacting with air or by the full or partial decomposition of ammonia to release hydrogen. • As a transport fuel by direct combustion in an engine or through chemical reaction with oxygen in the air in a fuel cell to produce electricity to power a motor. • To store thermal energy through the absorption of water and through phase changes between material states (for example liquid to gas).
Smart Power-to-gas Deployment Strategies Informed by Spatially Explicit Cost and Value Models
Oct 2022
Publication
Green hydrogen allows coupling renewable electricity to hard-to-decarbonize sectors such as long-distance transport and carbon-intensive industries in order to achieve net zero emissions. Evaluating the cost and value of power-to-gas is a major challenge owing to the spatial distribution and temporal variability of renewable electricity CO2 and energy demand. Here we propose a method based on geographic information system (GIS) and techno-economic modeling to: (i) compare the levelized cost and levelized value of power-to-gas across locations; (ii) identify potential hotspots for their future implementation in Switzerland; and (iii) set cost improvement targets as well as smart deployment strategies. Our method accounts for the spatial and temporal (both hourly and seasonal) availability of renewable electricity and CO2 sources as well as the presence of gas infrastructure heating networks oxygen and gas demand centers. We find that only green hydrogen plants connected directly to run-of-river hydropower plants are currently profitable in Switzerland (with NPV per CAPEX ranging between 2.3-5.6). However considering technological progress by 2050 a few green hydrogen plants deployed in the demand centers and powered by rooftop PV electricity will also become economically attractive. Moreover a few synthetic methane plants connected to run-of-river hydropower plants currently show slight profitability (NPV per CAPEX reaching values up to 1.3) and in 2050 (NPV per CAPEX up to 3.1) whereas those connected to rooftop PV will remain uneconomical even in 2050. Based on our findings we devise a long-term roadmap for policy makers and project developers to plan future green hydrogen projects. The proposed methodology which is applied to Switzerland can be extended to other countries.
A Positive Shift in the Public Acceptability of a Low-Carbon Energy Project After Implementation: The Case of a Hydrogen Fuel Station
Apr 2019
Publication
Public acceptability of low-carbon energy projects is often measured with one-off polls. This implies that opinion-shifts over time are not always taken into consideration by decision makers relying on these polls. Observations have given the impression that public acceptability of energy projects increases after implementation. However this positive shift over time has not yet been systematically studied and is not yet understood very well. This paper aims to fill this gap. Based on two psychological mechanisms loss aversion and cognitive dissonance reduction we hypothesize that specifically people who live in proximity of a risky low-carbon technology—a hydrogen fuel station (HFS) in this case—evaluate this technology as more positive after its implementation than before. We conducted a survey among Dutch citizen living nearby a HFS and indeed found a positive shift in the overall evaluation of HFS after implementation. We also found that the benefits weighed stronger and the risks weaker after the implementation. This shift did not occur for citizens living further away from the HFS. The perceived risks and benefits did not significantly change after implementation neither for citizens living in proximity nor for citizens living further away. The societal implications of the findings are discussed.
Net Zero and Geospheric Return: Actions Today for 2030 and Beyond
Sep 2020
Publication
In a report co-authored by Columbia University’s Centre on Global Energy Policy (CGEP) and the Global CCS Institute titled ‘Net Zero and Geospheric Return: Actions today for 2030’ findings reveal that climate finance policies and the development of carbon dioxide removal technologies need to grow rapidly within the next 10 years in order to curb climate change and hit net-zero targets.
The report unveils key climate actions required to avoid climate catastrophe:
With 2020 set to close the hottest decade on record CO2 emissions need to drop by 50% to achieve net-zero climate goals by 2030 The rapid deployment of climate mitigating infrastructure needs to occur including the expansion of CO2 pipelines from the current 8000 km to 43000 km by 2030 Clear climate polices which reduce the financial and regulatory risk of CO2 capture and storage and increase CO2 storage options need to be quickly developed and implemented.
Link to document on Global CCS Institute Website
The report unveils key climate actions required to avoid climate catastrophe:
With 2020 set to close the hottest decade on record CO2 emissions need to drop by 50% to achieve net-zero climate goals by 2030 The rapid deployment of climate mitigating infrastructure needs to occur including the expansion of CO2 pipelines from the current 8000 km to 43000 km by 2030 Clear climate polices which reduce the financial and regulatory risk of CO2 capture and storage and increase CO2 storage options need to be quickly developed and implemented.
Link to document on Global CCS Institute Website
Regional Insights into Low-carbon Hydrogen Scale Up: World Energy Insights Working Paper
May 2022
Publication
Following the release of the “Hydrogen on the Horizon” series in July and September 2021 the World Energy Council in collaboration with EPRI and PwC led a series of regional deep dives to understand regional differences within low-carbon hydrogen development. These regional deep dives aimed to uncover regional perspectives and differing dynamics for low-carbon hydrogen uptake.<br/>Although each region presents its own distinctive challenges and opportunities the deep dives revealed that the “regional paths” provide new insights into the global scaling up of low-carbon hydrogen in the coming years. In addition each region holds its own unique potential in achieving the Sustainable Development Goals.<br/>Key Takeaways:<br/>1. Our new regional insights indicate that low-carbon hydrogen can play a significant role by 2040 across the world by supporting countries’ efforts towards achieving Paris Agreement goals whilst contributing to the diversity and security of their energy portfolios. This would require significant global trade flows of hydrogen and hydrogen-based fuels.<br/>2. The momentum for hydrogen-based fuels is continuing to grow worldwide but differences are seen between regions – based on differing market activities and opportunities.<br/>3. Today moving from “whether” to “how” to develop low-carbon hydrogen highlights significant uncertainties which need to be addressed if hydrogen is to reach its full potential.<br/>Can the challenges in various supply chain options be overcome?<br/>Can hydrogen play a role in tackling climate change in the short term?<br/>Can bankable projects emerge and the gap between engineers and financers be bridged? Can the stability of supply of the main low-carbon hydrogen production sources be guaranteed?<br/>4. Enabling low-carbon hydrogen at scale would notably require greater coordination and cooperation amongst stakeholders worldwide to better mobilise public and private finance and to shift the focus to end-users and people through the following actions:<br/>Moving from production cost to end-use price<br/>Developing Guarantees of Origin schemes with sustainability requirements<br/>Developing a global monitoring and reporting tool on low-carbon hydrogen projects<br/>Better consideration of social impacts alongside economic opportunities
Methane Cracking as a Bridge Technology to the Hydrogen Economy
Nov 2016
Publication
Shifting the fossil fuel dominated energy system to a sustainable hydrogen economy could mitigate climate change through reduction of greenhouse gas emissions. Because it is estimated that fossil fuels will remain a significant part of our energy system until mid-century bridge technologies which use fossil fuels in an environmentally cleaner way offer an opportunity to reduce the warming impact of continued fossil fuel utilization. Methane cracking is a potential bridge technology during the transition to a sustainable hydrogen economy since it produces hydrogen with zero emissions of carbon dioxide. However methane feedstock obtained from natural gas releases fugitive emissions of methane a potent greenhouse gas that may offset methane cracking benefits. In this work a model exploring the impact of methane cracking implementation in a hydrogen economy is presented and the impact on global emissions of carbon dioxide and methane is explored. The results indicate that the hydrogen economy has the potential to reduce global carbon dioxide equivalent emissions between 0 and 27% when methane leakage from natural gas is relatively low methane cracking is employed to produce hydrogen and a hydrogen fuel cell is applied. This wide range is a result of differences between the scenarios and the CH4 leakage rates used in the scenarios. On the other hand when methane leakage from natural gas is relatively high methane steam reforming is employed to produce hydrogen and an internal combustion engine is applied the hydrogen economy leads to a net increase in global carbon dioxide equivalent emissions between 19 and 27%.
Hydrogen for Net Zero - A Critical Cost-competitive Energy Vector
Nov 2021
Publication
The report “Hydrogen for Net Zero” presents an ambitious yet realistic deployment scenario until 2030 and 2050 to achieve Net Zero emissions considering the uses of hydrogen in industry power mobility and buildings. The scenario is described in terms of hydrogen demand supply infrastructure abatement potential and investments required and then compared with current momentum and investments in the industry to identify the investment gaps across value chains and geographies.
The report is based on the technoeconomic data of cost and performance of hydrogen technologies provided by Hydrogen Council members and McKinsey & Company as well as the Hydrogen Council investment tracker which covers all large-scale investments into hydrogen globally.
Link to their website
The report is based on the technoeconomic data of cost and performance of hydrogen technologies provided by Hydrogen Council members and McKinsey & Company as well as the Hydrogen Council investment tracker which covers all large-scale investments into hydrogen globally.
Link to their website
Determinants of Consumers’ Purchasing Intentions for the Hydrogen-Electric Motorcycle
Aug 2017
Publication
In recent years increasing concerns regarding the energy costs and environmental effects of urban motorcycle use have spurred the development of hydrogen-electric motorcycles in Taiwan. Although gasoline-powered motorcycles produce substantial amounts of exhaust and noise pollution hydrogen-electric motorcycles are highly energy-efficient relatively quiet and produce zero emissions features that suggest their great potential to reduce the problems currently associated with the use of motorcycles in city environments. This study identified the significant external variables that affect consumers’ purchase intentions toward using hydrogen-electric motorcycles. A questionnaire method was employed with a total of 300 questionnaires distributed and 233 usable questionnaires returned yielding a 78% overall response rate. Structural equation modeling (SEM) was applied to test the research hypothesis. The research concluded that (1) product knowledge positively influenced purchase intentions but negatively affected the perceived risk; (2) perceived quality via hydrogen-electric motorcycles positively influenced the perceived value but negatively affected the perceived risk; (3) perceived risk negatively affected the perceived value; and (4) the perceived value positively affected purchase intentions. This study can be used as a reference for motorcycle manufacturers when planning their marketing strategies.
Interlinking the Renewable Electricity and Gas Sectors: A Techno-Economic Case Study for Austria
Oct 2021
Publication
Achieving climate neutrality requires a massive transformation of current energy systems. Fossil energy sources must be replaced with renewable ones. Renewable energy sources with reasonable potential such as photovoltaics or wind power provide electricity. However since chemical energy carriers are essential for various sectors and applications the need for renewable gases comes more and more into focus. This paper determines the Austrian green hydrogen potential produced exclusively from electricity surpluses. In combination with assumed sustainable methane production the resulting renewable gas import demand is identified based on two fully decarbonised scenarios for the investigated years 2030 2040 and 2050. While in one scenario energy efficiency is maximised in the other scenario significant behavioural changes are considered to reduce the total energy consumption. A techno-economic analysis is used to identify the economically reasonable national green hydrogen potential and to calculate the averaged levelised cost of hydrogen (LCOH2) for each scenario and considered year. Furthermore roll-out curves for the necessary expansion of national electrolysis plants are presented. The results show that in 2050 about 43% of the national gas demand can be produced nationally and economically (34 TWh green hydrogen 16 TWh sustainable methane). The resulting national hydrogen production costs are comparable to the expected import costs (including transport costs). The most important actions are the quick and extensive expansion of renewables and electrolysis plants both nationally and internationally
The Role of Hydrogen in a Greenhouse Gas-neutral Energy Supply System in Germany
Sep 2022
Publication
Hydrogen is widely considered to play a pivotal role in successfully transforming the German energy system but the German government’s current “National Hydrogen Strategy” does not specify how hydrogen utilization production storage or distribution will be implemented. Addressing key uncertainties for the German energy system’s path to greenhouse gas-neutrality this paper examines hydrogen in different scenarios. This analysis aims to support the concretization of the German hydrogen strategy. Applying a European energy supply model with strong interactions between the conversion sector and the hydrogen system the analysis focuses on the requirements for geological hydrogen storages and their utilization over the course of a year the positioning of electrolyzers within Germany and the contributions of hydrogen transport networks to balancing supply and demand. Regarding seasonal hydrogen storages the results show that hydrogen storage facilities in the range of 42 TWhH2 to 104 TWhH2 are beneficial to shift high electricity generation volumes from onshore wind in spring and fall to winter periods with lower renewable supply and increased electricity and heat demands. In 2050 the scenario results show electrolyzer capacities between 41 GWel and 75 GWel in Germany. Electrolyzer sites were found to follow the low-cost renewable energy potential and are concentrated on the North Sea and Baltic Sea coasts with their high wind yields. With respect to a hydrogen transport infrastructure there were two robust findings: One a domestic German hydrogen transport network connecting electrolytic hydrogen production sites in northern Germany with hydrogen demand hubs in western and southern Germany is economically efficient. Two connecting Germany to a European hydrogen transport network with interconnection capacities between 18 GWH2 and 58 GWH2 is cost-efficient to meet Germany’s substantial hydrogen demand.
Methanol as a Renewable Energy Carrier: An Assessment of Production and Transportation Costs for Selected Global Locations
Jun 2021
Publication
The importing of renewable energy will be one part of the process of defossilizing the energy systems of countries and regions which are currently heavily dependent on the import of fossil-based energy carriers. This study investigates the possibility of importing renewable methanol comprised of hydrogen and carbon dioxide. Based on a methanol synthesis simulation model the net production costs of methanol are derived as a function of hydrogen and carbon dioxide expenses. These findings enable a comparison of the import costs of methanol and hydrogen. For this the hydrogen production and distribution costs for 2030 as reported in a recent study for four different origin/destination country combinations are considered. With the predicted hydrogen production costs of 1.35–2 €/kg and additional shipping costs methanol can be imported for 370–600 €/t if renewable or process-related carbon dioxide is available at costs of 100 €/t or below in the hydrogen-producing country. Compared to the current fossil market price of approximately 400 €/t renewable methanol could therefore become cost-competitive. Within the range of carbon dioxide prices of 30–100 €/t both hydrogen and methanol exhibit comparable energy-specific import costs of 18–30 €/GJ. Hence the additional costs for upgrading hydrogen to methanol are balanced out by the lower shipping costs of methanol compared to hydrogen. Lastly a comparison for producing methanol in the hydrogen’s origin or destination country indicates that carbon dioxide in the destination country must be 181–228 €/t less expensive than that in the origin country to balance out the more expensive shipping costs for hydrogen.
Future Electricity Series Part 3 - Power from Nuclear
Mar 2014
Publication
This independent cross-party report highlights the key role that political consensus can play in helping to reduce the costs of nuclear power in the UK as well as other low carbon technologies. This political consensus has never been more important than in this ‘defining decade’ for the power sector. The report highlights that an immediate challenge facing the UK’s new build programme is agreeing with the European Commission a regime for supporting new nuclear power. Changing the proposed support package would not be an impossible task if made necessary but maintaining broad political consensus and considering the implications of delay are also important. The State Aid process is an important opportunity for scrutiny with the report demonstrating that shareholders for Hinkley Point C could see bigger returns (19-21%) than those typically expected for PFI projects (12-15%). However it is too early to conclude on the value for money of the Hinkley Point C agreement. Both the negotiation process and the resulting investment contract are important but there has been little transparency over either so far and the negotiations were not competitive. The inquiry calls for more urgency and better coordination in seizing the opportunity to reuse the UK’s plutonium stockpile.
The UK’s stockpile of separated plutonium presents opportunities to tackle a number of national strategic priorities including implementing long term solutions for nuclear waste developing new technologies that could redefine the sector laying the ground for new nuclear power and pursuing nuclear non-proliferation. Government has identified three ‘credible solutions’ for reuse and the report recommends that it now sets clearer criteria against which to assess options and identifies budgetary requirements to help expediate the process. The report also argues that Government should do more on new nuclear technologies that could redefine the sector – such as considering smaller reactors nuclear for industrial heat or hydrogen production and closed or thorium fuel cycles. The Government’s initial response to a review of nuclear R&D a year ago by the then Chief Scientific Advisor Sir John Beddington has been welcome and it needs to build on this. In particular the UK should capitalise upon its existing expertise and past experience to focus efforts where there is most strategic value. Nulcear waste. Having failed to date the Government must urgently revisit plans for finding a site to store nuclear waste underground for thousands of years. Implementing this is a crucial part of demonstrating that nuclear waste is a manageable challenge. Despite being rejected by Cumbria County Council the continuing strong support amongst communities in West Cumbria for hosting a site is a promising sign.
On affordability the report finds that it is not yet clear which electricity generation technologies will be cheapest in the 2020s and beyond. Coal and gas could get more expensive if fossil fuel and carbon prices rise whilst low carbon technologies could get cheaper as technology costs fall with more deployment. This is the main reason for adopting an ‘all of the above’ strategy including nuclear power until costs become clearer and there is broad consensus behind this general approach.
On security of supply the inquiry says that deployment of nuclear power is likely to be influenced more by the economics of system balancing rather than technical system balancing challenges which can be met with greater deployment of existing balancing tools. The cost of maintaining system security is likely to mean that the UK maintains at least some baseload capacity such as nuclear power to limit system costs.
On sustainability the report finds that the environmental impacts of nuclear power are comparable to some generation technologies and favourable to others although the long lived nature of some radioactive nuclear waste and the dual use potential of nuclear technology for civil and military applications create unique sustainability challenges which the UK is a world leader in managing.
It is the final report of the Future Electricity Series an independent and cross party inquiry into the UK power sector sponsored by the Institution of Gas Engineers and Managers
The UK’s stockpile of separated plutonium presents opportunities to tackle a number of national strategic priorities including implementing long term solutions for nuclear waste developing new technologies that could redefine the sector laying the ground for new nuclear power and pursuing nuclear non-proliferation. Government has identified three ‘credible solutions’ for reuse and the report recommends that it now sets clearer criteria against which to assess options and identifies budgetary requirements to help expediate the process. The report also argues that Government should do more on new nuclear technologies that could redefine the sector – such as considering smaller reactors nuclear for industrial heat or hydrogen production and closed or thorium fuel cycles. The Government’s initial response to a review of nuclear R&D a year ago by the then Chief Scientific Advisor Sir John Beddington has been welcome and it needs to build on this. In particular the UK should capitalise upon its existing expertise and past experience to focus efforts where there is most strategic value. Nulcear waste. Having failed to date the Government must urgently revisit plans for finding a site to store nuclear waste underground for thousands of years. Implementing this is a crucial part of demonstrating that nuclear waste is a manageable challenge. Despite being rejected by Cumbria County Council the continuing strong support amongst communities in West Cumbria for hosting a site is a promising sign.
On affordability the report finds that it is not yet clear which electricity generation technologies will be cheapest in the 2020s and beyond. Coal and gas could get more expensive if fossil fuel and carbon prices rise whilst low carbon technologies could get cheaper as technology costs fall with more deployment. This is the main reason for adopting an ‘all of the above’ strategy including nuclear power until costs become clearer and there is broad consensus behind this general approach.
On security of supply the inquiry says that deployment of nuclear power is likely to be influenced more by the economics of system balancing rather than technical system balancing challenges which can be met with greater deployment of existing balancing tools. The cost of maintaining system security is likely to mean that the UK maintains at least some baseload capacity such as nuclear power to limit system costs.
On sustainability the report finds that the environmental impacts of nuclear power are comparable to some generation technologies and favourable to others although the long lived nature of some radioactive nuclear waste and the dual use potential of nuclear technology for civil and military applications create unique sustainability challenges which the UK is a world leader in managing.
It is the final report of the Future Electricity Series an independent and cross party inquiry into the UK power sector sponsored by the Institution of Gas Engineers and Managers
A Review on Ports' Readiness to Facilitate International Hydrogen Trade
Jan 2023
Publication
The existing literature on the hydrogen supply chains has knowledge gaps. Most studies focus on hydrogen production storage transport and utilisation but neglect ports which are nexuses in the supply chains. To fill the gap this paper focuses on ports' readiness for the upcoming hydrogen international trade. Potential hydrogen exporting and importing ports are screened. Ports' readiness for hydrogen export and import are reviewed from perspectives of infrastructure risk management public acceptance regulations and standards and education and training. The main findings are: (1) liquid hydrogen ammonia methanol and LOHCs are suitable forms for hydrogen international trade; (2) twenty ports are identified that could be first movers; among them twelve are exporting ports and eight are importing ports; (3) ports’ readiness for hydrogen international trade is still in its infancy and the infrastructure construction or renovation risk management measures establishment of regulations and standards education and training all require further efforts.
Moving Toward the Low-carbon Hydrogen Economy: Experiences and Key Learnings from National Case Studies
Sep 2022
Publication
The urgency to achieve net-zero carbon dioxide (CO2) emissions by 2050 as first presented by the IPCC special report on 1.5°C Global Warming has spurred renewed interest in hydrogen to complement electrification for widespread decarbonization of the economy. We present reflections on estimates of future hydrogen demand optimization of infrastructure for hydrogen production transport and storage development of viable business cases and environmental impact evaluations using life cycle assessments. We highlight challenges and opportunities that are common across studies of the business cases for hydrogen in Germany the UK the Netherlands Switzerland and Norway. The use of hydrogen in the industrial sector is an important driver and could incentivise large-scale hydrogen value chains. In the long-term hydrogen becomes important also for the transport sector. Hydrogen production from natural gas with capture and permanent storage of the produced CO2 (CCS) enables large-scale hydrogen production in the intermediate future and is complementary to hydrogen from renewable power. Furthermore timely establishment of hydrogen and CO2 infrastructures serves as an anchor to support the deployment of carbon dioxide removal technologies such as direct air carbon capture and storage (DACCS) and biohydrogen production with CCS. Significant public support is needed to ensure coordinated planning governance and the establishment of supportive regulatory frameworks which foster the growth of hydrogen markets.
Comparative Cost Assessment of Sustainable Energy Carriers Produced from Natural Gas Accounting for Boil-off Gas and Social Cost of Carbon
Jun 2020
Publication
As a result of particular locations of large-scale energy producers and increases in energy demand transporting energy has become one of the key challenges of energy supply. For a long-distance ocean transportation transfer of energy carriers via ocean tankers is considered as a decent solution compared to pipelines. Due to cryogenic temperatures of energy carriers heat leaks into storage tanks of these carriers causes a problem called boil-off gas (BOG). BOG losses reduce the quantity of energy carriers which affects their economic value. Therefore this study proposes to examine the effects of BOG economically in production and transportation phases of potential energy carriers produced from natural gas namely; liquefied natural gas (LNG) dimethyl-ether (DME) methanol liquid ammonia (NH3) and liquid hydrogen (H2). Mathematical approach is used to calculate production and transportation costs of these energy carriers and to account for BOG as a unit cost within the total cost. The results of this study show that transportation costs of LNG liquid ammonia methanol DME and liquid hydrogen from natural gas accounting for BOG are 0.74 $/GJ 1.09 $/GJ 0.68 $/GJ 0.53 $/GJ and 3.24 $/GJ respectively. DME and methanol can be more economic compared to LNG to transport the energy of natural gas for the same ship capacity. Including social cost of carbon (SCC) within the total cost of transporting the energy of natural gas the transportation cost of liquid ammonia is 1.11 $/GJ whereas LNG transportation cost rises significantly to 1.68 $/GJ at SCC of 137 $/t CO2 eq. Consequently liquid ammonia becomes economically favored compared to LNG. Transportation cost of methanol (0.70 $/GJ) and DME (0.55 $/GJ) are also lower than LNG however liquid hydrogen transportation cost (3.24 $/GJ) is still the highest even though the increment of the cost is about 0.1% as SCC included within the transportation cost.
Can Industrial-Scale Solar Hydrogen Supplied from Commodity Technologies Be Cost Competitive by 2030?
Sep 2020
Publication
Expanding decarbonization efforts beyond the power sector are contingent on cost-effective production of energy carriers like H2 with near-zero life-cycle carbon emissions. Here we assess the levelized cost of continuous H2 supply (95% availability) at industrial-scale quantities (100 tonnes/day) in 2030 from integrating commodity technologies for solar photovoltaics electrolysis and energy storage. Our approach relies on modeling the least-cost plant design and operation that optimize component sizes while adhering to hourly solar availability production requirements and component inter-temporal operating constraints. We apply the model to study H2 production costs spanning the continental United States and through extensive sensitivity analysis explore system configurations that can achieve $2.5/kg levelized costs or less for a range of plausible 2030 technology projections at high-irradiance locations. Notably we identify potential sites and system configurations where PV-electrolytic H2 could substitute natural gas-derived H2 at avoided CO2 costs (%$120/ton) similar to the cost of deploying carbon capture and sequestration.
No more items...