Decarbonisation Technology - November 2023 Issue

Project

Process

Location

410,000 (annual) Capacity MT of H 2

Investment

Date of

Remarks

commissioning

Aqua Aerem Desert Boom

Aqua Aerem

Northern Territory, Australia

$10.75 billion

2027

Modular hydrogen production units. H 2

WE

Hydrogen

price: $2/kg

Shell Hydrogen

WE by TUCE

Rotterdam, Netherlands

200 MW,

2025

2.4 MMT of CO 2 will be

20MW

Alkaline WE 50-60 TPD H 2 /day

saved

GreenHyScale

WE P2X

Denmark,

6 MW

30 million

2022 2024

project by

multi MW range consortium of

100 MW 30 TPD H 2

Euros

GreenLab Skive alkaline electrolyser 11 entities*

Shell Zhangjiakou Green Hydrogen JV

WE by Shell Power to H 2

Zhangjiakou Hubei, China

20 MW in Ph 1 60 MW in Ph 2

2023 2025

NEOM Green Hydrogen - Air Products,

WE by TUCE

S. Arabia

2 GW

2026

1.2 MMT of green NH 3 annually

20 MW AWE

ACWA Power, NEOM

* GreenLab Skive A/S, Green Hydrogen Systems A/S, Energy Cluster Denmark, Lhyfe, Siemens Gamesa Renewable Energy, Equinor Energy A/S, Technical University of Denmark, Imperial College London, Everfuel, Quantafuel, and Euroquality WE - Water electrolysers, MT - Metric tonnes , MMT - Million MT, TUCE - thyssenkrupp Uhde Chlorine Engineers

Table 1 Major green hydrogen projects under implementation

major sectors will witness an accelerated shift towards green hydrogen (see Table 1 ). Process economics Even though capital costs for methane pyrolysis are high, operating costs are certainly lower. Additionally, the elemental carbon by-product represents a secondary income stream. The availability of water and the outlets for oxygen co-produced pose challenges for the economics of water electrolysis, while the added capital and operating cost incurred towards building CCS infrastructure are disadvantages for SMR (see Table 2 ). The cost of clean hydrogen production varies as each of the processes uses different designs, technologies, feedstock, and utilities. The economics of various hydrogen production processes avoiding GHG emissions is also better understood through the levelised cost of hydrogen (LCOH). LCOH considers the costs to produce one kilogram of clean hydrogen, including Capex and Opex components. The

Capex for blue hydrogen includes the complete SMR/ATR unit with an associated CCS facility, and that for green hydrogen includes the electrolyser unit with the essential ancillaries. Storage and transport are excluded. Researchers, technology providers, and process operators have studied the economics of blue, green, and turquoise hydrogen production. Today, the average LCOH is $2-3kg for an SMR with CCS, $5-6/kg for water electrolysis (WE), and $2.8-3/kg for methane pyrolysis (see Table 3 ). If a credit is given to the carbon by-product, the LCOH for methane pyrolysis may be as low as $1.8/kg. These figures are based on an average gas price of $9 per MMBTU and renewable power at $45/MWh. The levelised cost of blue hydrogen will vary in line with oil and gas prices but will likely fall as independent CCS facilities come on stream. Similarly, the LCOH of green hydrogen is expected to fall by 2030 due to a reduction in the cost of renewable power, as well as

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