H2Tech - Q1 2022 - 34

SPECIAL FOCUS ADVANCES IN HYDROGEN TECHNOLOGY
consumption required to capture CO2
given its low concentration in the atmosphere
(around 440 ppm). Industrialscale
business cases for e-fuel production
are only viable when both electricity and
CO2
costs are favorable.
As illustrated in FIG. 3, with a favorable
LCoE and cost for CO2
supply, e-methanol
and e-ammonia can be produced at
almost the same cost as their gray counterparts.
In the case of e-methanol, production
costs are within the range of biofuel.
FIG. 2. Green H2 can compete with gray and blue H2
at low LCoE. Green H2
a
.
production costs
for various electricity prices and load factors of electrolyzers in comparison to blue H2
(using carbon capture, utilization and storage) and gray H2
Takeaway. The current major obstacle
to the accelerated build-out of green H2
production is the availability of clean electricity.
In Europe alone, it is estimated that
1,100 GW-1,300 GW of dedicated renewable
generating capacity and up to 550 GW
of electrolyzer capacity will be needed to
fulfill the green H2
demand forecasted by
2050.3
Current trends are heartening. Despite
the pandemic, the world managed to
add a record 260 GW of renewable energy
capacity in 2020, more than four times the
additional capacity from other sources. By
2030, according to IRENA, global renewable
energy capacity could reach 10,770
GW, nearly quadruple the current capacity.
H2
FIG. 3. Given favorable conditions, e-methanol and e-ammonia can compete with gray
and bio counterparts.
ity generated by the plant's wind turbines
to break water (H2
O) into O2
and H2
,
the PEM will prevent the two product
gases from mixing. The splitting of water
molecules will occur via electrodes connected
to the voltage source's positive and
negative poles and sited on the front and
back of the membrane. The electrolyzer
will not require preheating before being
switched on or off, making it well suited
for the load profiles of renewable power
sources such as wind and solar, which are
volatile by nature.
Downstream of the electrolyzer, the
green H2 will be combined with CO2
filtered
from the air to produce synthetic
methanol. This, in turn, will be converted
into e-gasoline, providing a decarbonization
solution for mobility applications.
Project economics. While levelized
cost of energy (LCoE) has a greater impact
than any other variable on the economics
of green H2
and e-fuel production,
the capacity factor (full-load hours)
of the electrolyzer used takes a strong sec34
Q1 2022 | H2-Tech.com
ond place-it defines the capital efficiency
of the electrolysis and synthesis plant.
With a favorable LCoE of $20/MWh and
6,000 full-load hr availability for some
locations, green H2
with gray and blue H2
can already compete
produced from
steam-methane reforming or autothermal
reforming of natural gas (see FIG. 2).
Since the costs for green H2
also affects
the production costs for derivatives in regions
such as Chile, the prices for e-fuels
are lower than for other environmentally
sustainable fuels used in the mobility sector,
including ethanol.
For carbon-based e-fuels such as emethanol,
the cost of CO2
also impacts
project economics. Currently, the most
efficient and cost-effective method of carbon
capture utilizes industrial sites with
high-CO2
concentration flue gases; this
is particularly the case when oxy fuels
are combusted. As was previously mentioned,
the Haru Oni project will utilize
direct air capture (DAC)-it will capture
CO2
a
is positioned to become an essenproduced
tial
component of a decarbonized world.
While approximately 95% of H2
today is gray, this is changing as blue and
green production capacity rises. There is
still a long way to go, but the question is
no longer if energy transition can be accomplished
but rather how quickly.
NOTES
Assuming 50-MW electrolyzer, WACC 8.9%,
CAPEX electrolyzer 640 $/kW, electrolyzer
efficiency 75%, 20-yr lifetime, OPEX 5% of CAPEX
(including exchange of electrolyzer module).
LITERATURE CITED
Complete literature cited available online at
www.H2-Tech.com.
STEFAN DIEZINGER is the Vice
President of Sustainable Energy
Systems at Siemens Energy. In his
current capacity, he works with
companies to assess, develop and
implement decarbonization
strategies. Prior to the spinoff of
from the atmosphere. The particular
challenge of DAC lies in the high energy
Siemens Energy, Dr. Diezinger held several executive
sales positions with Siemens AG, including Vice
President of Sales: Industrial Business. He has also
worked in project management and engineering
capacities. Dr. Diezinger earned a Bch degree
in business administration from the University of
California at Berkley, an MS degree in process
engineering and a Ph.D. in mechanical engineering,
both from FAU Erlangen-Nürnberg.
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