Hydrogen Production

Summary

US-REGEN includes an explicit representation of hydrogen production, which can be either consumed for power generation or supplied directly to the non-electric sectors. Hydrogen is an energy carrier produced by primary processes using other energy inputs. These could include fossil sources such as coal or gas, biomass, or through electrolysis. Fossil and biomass hydrogen technologies could be used with carbon capture. Hydrogen from electrolysis that is converted back into electricity functions as a form of seasonal storage.

Hydrogen is currently used in the U.S. for hydrotreating in petroleum refineries and as an industrial gas in the chemical industry. It is also produced as an intermediate step in ammonia production via the Haber-Bosch process. Virtually all hydrogen currently produced in the U.S. is from natural gas via steam methane reforming, either as part of a refinery's operations, integrated with ammonia production in fertilizer manufacturing, or at merchant hydrogen production facilities. US-REGEN represents existing hydrogen production capacity and demands as well as the potential for new capacity additions over time. Both the supply and demand side of hydrogen could evolve significantly over time depending on the scenario, including new investments in alternative hydrogen production technologies and increased demand as either a generation fuel, direct use as a non-electric fuel, or indirect use in fuel synthesis.

Similar to electricity, the model's optimization chooses both the level of production capacity and the dispatch of hydrogen production, as well as its consumption for either generation or non-electric use, in each load segment, so that the capacity or utilization factor of the production technology is endogenously determined. This implementation is particularly important for electrolysis, which will have strong economic incentives to operate in a flexible manner following intermittent renewable output. Supply and demand must balance in each load segment, which implies a potential need for physical hydrogen storage, as described in the Fuel Delivery and Storage section. The realized levelized costs of electrolytic hydrogen depend endogenously on a balance between the capacity factor of the electrolyzer and the price of the electricity during the production segments, as well as on the costs for storage to balance supply and demand.

Technology Cost and Performance

US-REGEN model assumptions for the costs and efficiency of candidate hydrogen production technologies over time are shown in the chart and table below. Use the buttons to choose a parameter to compare. Descriptions of each technology can be found under the "Data Definitions" panel. Note that while both electrolysis and steam-methane reforming require water inputs, these are represented as costs and are included in variable operating cost; US-REGEN does not currently assume any regional constraints on water availability.

Capital Cost by Hydrogen Production Technology and Year
  • Chart
  • Table
Data Definitions

Measures

  • Capital Cost ($ per kBtu/h): Cost to bring a new hydrogen production system into operation, normalized to the system's output capacity
  • Fixed Cost ($/year per kBtu/h): Annual fixed cost to operate and maintain the hydrogen production system, normalized to the system's output capacity
  • Variable Cost ($/MMBtu): Non-fuel variable cost to operate and maintain the system per unit of hydrogen produced
  • Energy Efficiency: Ratio of hydrogen energy output to total energy input

Hydrogen Production Technology

  • SMR: Steam methane reforming without carbon capture
  • SMR+99%CC: Steam methane reforming with 90% carbon capture
  • Coal: Coal gasification without carbon capture
  • Coal+90%CC: Coal gasification with 90% carbon capture
  • Bio: Biomass gasification without carbon capture
  • Bio+55%CC: Biomass gasification with 55% carbon capture
  • PEM (central): Polymer electrolyte membrane (PEM) electrolysis, central scale
  • PEM (distributed): Polymer electrolyte membrane (PEM) electrolysis, distributed scale
  • Alkaline: Alkaline electrolysis
  • HTSE: High-temperature steam electrolysis (solid oxide)