Impact of Natural Gas Cost on Hydrogen Cost

November 12, 2021

Impact of natural gas cost on hydrogen production cost, at varying natural gas price levels, via the steam methane reforming (SMR) process.

This process results in carbon emissions as hydrogen is released from CH4 molecules – grey hydrogen, where carbon is released into the atmosphere, and green hydrogen with carbon capture and storage (CCS).

Renewable Identification Numbers (RIN) Pricing

November 12, 2021

Historical renewable identification numbers (RIN) credits for cellulosic biofuel (classified as D-3) and advanced biofuel (assigned D-5).

RIN’s are tradable credits generated when a gallon of renewable fuel is produced. To generate RIN’s, the renewable gas must be used for transportation purposes.

Hydrogen Transportation

November 12, 2021

Schematic of hydrogen transportation for pure hydrogen and utilizing a carrier for both ammonia (NH3) and Methylcyclohexane (MCH).

Hydrogen has high energy per weight, however, has a low density, therefore, low energy per volume. Low density coupled with having a low boiling point creates challenges in storage and ransportation.

Cost of Hydrogen in Western Canada

November 12, 2021

Cost of hydrogen in Western Canada under thee scenarios; Hydrogen Case, Low Carbon Ammonia (CH3) Case, and methylcyclohexane (MCH) Case.

The ability to convert natural gas and sequester carbon near tidewater would improve overall economics.

Transportation Pathways to Hydrogen Export

November 12, 2021

Transportation pathways to export hydrogen from Edmonton, AB to the West Coast via hydrogen gas pipeline and CN and CP rail routes.

Hydrogen can be shipped via pipeline (similar to natural gas) while Ammonia (NH3) and methylcyclohexane (MCH) would be shipped by rail (similar to Natural Gas Liquids ((NGL) and crude oil, respectively)

Marine Transportation Competitiveness to Asia

November 12, 2021

Schematic of the cost to transport hydrogen, Ammonia (CH4), and Methylcyclohexane (MCH) to Asia from Canada, Australia, and the US. Additional table of shipping rates for each product.

Generally, cost of marine transportation is a function of shipping distance and vessel capacity. Shipping from the West Coast of Canada or Australia would be similar while the US Gulf Coast would be about double.

Hydrogen Steam Methane Reforming (SMR)

November 12, 2021

Cost components (CAPEX, OPEX, natural gas input, and CCS) of hydrogen stream methane reforming (SMR), including carbon capture and storage (CCS), known as Blue Hydrogen.

Using natural gas via the steam methane reforming (SMR) process results in carbon emissions as hydrogen is released from methane (CH4) molecules. Grey Hydrogen is hydrogen created via SMR with carbon released into the atmosphere.

Carbon Capture and Storage of Hydrogen

November 13, 2021

Cost components (CAPEX and OPEX) of carbon capture and storage (CCS) of hydrogen.

Carbon Capture and Storage (CCS) is the process of capturing and storing carbon dioxide from industrial processes thereby preventing release into the atmosphere.

Low Carbon Ammonia Plant

November 13, 2021

Cost components (CAPEX and OPEX) of a low carbon ammonia plant.

Low Carbon Ammonia utilizes blue hydrogen to create NH3, which than can be used in fertilizer production, as a hydrogen carrier, or directly as fuel.

Hydrogen Pipeline

November 13, 2021

Cost components (CAPEX and OPEX) of a hydrogen pipeline.

Hydrogen can be transported by pipeline from Alberta to the Canadian West Coast. The Northern Gateway 1,150 km Right of Way was used as a proxy to deliver hydrogen gas to Kitimat.

Methylcyclohexane (MCH)-Toluene Hydrogenation

November 13, 2021

Cost components (CAPEX and OPEX) for a Methylcyclohexane (MCH)-Toluene hydrogenation plant.

Toluene hydrogenation creates MCH which can be shipped similar to natural gas liquids (NGL) where it undergoes a dehydrogenation process.