PTQ Q3 2024 Issue

7.0

2500

ATR-CCS SMR-85%

SMR-52% NGD-CCS

y = 17.869x 0.6773 R = 0.9976

6.0

2000

y = 46.601x 0.5378 R = 0.9911

5.0

4.0

1500

y = 27.713x 0.5815 R = 0.9798

3.0

1000

2.0

y = 14.871x 0.6663 R = 0.9983

500

1.0

0.0

50

250

450

650

850

1050

0

0

200

400

600

800

1000

1200

Capacity (tonnes/day)

Capacity (tonnes/day)

ATR-CCS SMR-85%

Power Power

SMR-52% NGD-CCS

Power Power

with the lowest and highest costs, respectively. ATR-CCS and SMR 52% have lower blue hydrogen production costs and are economically preferable to NGD-CCS and SMR- 85%. These cost figures may change with sensitivity analysis involving hydrogen storage and internal rate of return (IRR). w Scale factors and the effect of plant capacity on blue hydrogen cost Two plant capacities of 50 to 1,000 tons/day of hydrogen production were investigated by the research - ers. The capital cost of each was estimated to determine the plant scale factor using process simulation models for each plant. Figure 1 presents the economic feasibility of increasing plant capacity. It further shows the plots of capital cost vs plant capacity for the four hydrogen tech - nologies. For all the cases considered, the scale factor value indicates that to lower the hydrogen cost, plant capacity needs to be increased. Figure 2 presents the economic feasibility of increasing plant capacity. Hydrogen costs decrease as plant capacity increases. It is worth mentioning that decreasing ATR-CCS hydrogen production cost is steeper because of its lower operating costs. ATR-CCS and NGD-CCS are more attrac - tive economically for large-scale hydrogen production. Since economies of scale exist for all blue hydrogen technologies, operating the plants at a higher capacity will be beneficial. Figure 2 Hydrogen costs at different plant capacities (tons/ day) for the four blue hydrogen technologies

emission rate within the natural gas supply chain, the CO₂ removal rate at the hydrogen production plant, and the spe- cific global warming metric employed. Advanced reform - ing techniques, characterised by high CO₂ capture rates, in conjunction with a natural gas supply featuring minimal methane emissions, result in a substantial reduction in GHG emissions compared to conventional natural gas reforming. Under these optimised conditions, blue hydrogen aligns with low-carbon economies and demonstrates climate change impacts towards the upper spectrum of those asso - ciated with hydrogen production from renewable-based electricity. Typical GHG emissions and the cost of producing hydro - gen 1 for 607 tonnes of hydrogen production per day are shown in Table 1 . Blue hydrogen from ATR has the lowest life cycle GHG emissions, followed by NGD SMR-85% and SMR-52%, with the longest life cycle GHG emissions of 8.20 kg CO₂eq/kg H₂. Data relating to blue hydrogen production cost for 607 tonnes of hydrogen production per day, as shown in Table 1, suggest that ATR-CCS and NGD-CCS produce hydrogen Figure 1 Capital costs at different plant capacities for the four blue hydrogen technologies1

120

ATR

SGP

106

100

100

100

100

100

83

78

80

66

60

Levellised cost of hydrogen 22% lower owing to a: 17% lower capital expenditure 34% lower operating expenditure (not including natural gas feedstock price)

Plant capital expenditure Potentially higher operating pressure leading to a smaller: Hydrogen compressor; and CCS plant Minimal feed gas pretreatment

Plant capital expenditure Reduced compression duties More steam for internal power generation

Plant capital expenditure 6% greater natural gas consumption but oset by having more steam available for power generation

Figure 3 The cost of SGP technology relative to ATR (Source: Shell)

83

PTQ Q3 2024

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