H2Tech - Q3 2021 - 26

SPECIAL FOCUS HYDROGEN INFRASTRUCTURE DEVELOPMENT
TABLE 1. Utility costs
Utility
Natural gas, USD/kWh1
Power, USD/kWh2
Demineralized water, USD/metric t
Cooling water, USD/m3
Toluene, USD/metric t3
LNG, USD/GJ4
LH2, USD/GJ5
3,000
2,500
2,000
1,500
1,000
500
Specific operating cost = OPEX ($MM/yr) /
metric t H2
Qatar
0.0082
0.0351
2.5
0.1
424
5.93
12
UK
0.012
0.064
1.875
0.064
-
-
-
CAPEX
OPEX
The total process-specific cost per metric t of H2
is normally
calculated as the sum of the specific CAPEX and OPEX. An exception
to this is made for the LNG value chain. Since the LNG
value chain is already established on a much larger scale than
the 500-metric-tpd H2
the specific H2
requirement used for this study, CAPEX
and OPEX attributed to the LNG capacity was simply prorated
on the installed capacity.
The CAPEX and OPEX were calculated for each option, and
value was calculated simplistically by dividing
the CAPEX by 30 yr, adding the annual OPEX and diving the
result by the final H2
production (0.171 MMtpy in all cases).
This specific H2 value ($/metric t) is used to compare the overall
value chains, as well as individual aspects of each option.
Part 2. This article continues in Parts 2 and 3, to be published
in consecutive issues, to illustrate the results shown in FIG. 2.
NOTES
This article was presented at the GPA Europe Virtual Conference on May 25,
LNG
LH2
FIG. 2. CAPEX/OPEX comparison.
Here, n is the scale factor. In this study, a scale factor of 0.6
is used. Capital investment is typically reported as USD $MM,
and the capacity is reported in metric tpy of the corresponding
energy vector.
The specific CAPEX per year is calculated by dividing the
capital investment (S) by the plant lifetime in years. For a specific
capital cost per metric t of H2
target H2 is considered as shown in Eq. 9:
Specific capital cost = CAPEX ($MM/yr) / metric t H2
As mentioned previously, the OPEX splits into a fixed
OPEX, which is represented by a percentage of the CAPEX and
variable OPEX, as shown in Eq. 10:
Fixed OPEX = O&M (%) × Capital investment (S) (10)
Here, fixed OPEX is reported as $MM/yr. Variable operating
costs are calculated by multiplying utility data by a corresponding
price, as calculated in Eq. 11:
Variable OPEX = Utility data × Price
(11)
The utility data refers to the feed and utility consumption
(e.g., natural gas feed, power consumption, fuel consumption,
etc.) in a process reported as kWh or metric t. Prices are represented
in various ranges, depending on the type of energy
source, typically reported as USD/kWh or USD/metric t. Variable
OPEX is then determined as $MM/yr, using Eq. 11.
To determine the specific operating cost per metric t of H2
,
the same approach to that of specific capital investment is applied,
as shown in Eq. 12:
26 Q3 2021 | H2-Tech.com
(9)
, the annual capacity of the
2
3
LH2
Future
NH3
MCH
2021.
The information and data contained herein is provided by Wood, solely in
respect of the paper itself and should not be considered to have consequence
outside of this hypothetical study. Wood makes no representation or warranty,
express or implied, and assumes no obligation or liability, whatsoever, to any third
party with respect to the veracity, adequacy, completeness, accuracy or use of any
information contained herein. The information and data contained herein is not,
and should not be construed as, a recommendation by Wood that any recipient of
this document invest in or provide finance to any similar project. Each recipient
should make its own independent evaluation to determine whether to extend
credit to projects with which they are involved.
LITERATURE CITED
1
ITM Power, " Sale to Linde of world's largest PEM electrolyser, " online: https://
www.itm-power.com/news/sale-to-linde-of-world-s-largest-pem-electrolyser
ITM Power, " HyDeploy: UK gas grid injection of hydrogen in full operation, "
online: https://www.itm-power.com/news/hydeploy-uk-gas-grid-injection-ofhydrogen-in-full-operation
South
Hook LNG, " Operations: The supply chain, " online: https://www.
southhooklng.com/liquefied-natural-gas/the-supply-chain/how-it-works
4 Ports.com, " Sea route and distance, " online: http://ports.com/sea-route
5 Wikipedia, " Q-Max, " online: https://en.wikipedia.org/wiki/Q-Max
6
7
8
South Hook LNG, " Operations: What we do, " online: https://www.
southhooklng.com/operations/what-we-do
National Grid UK, " Gas prevailing view, " online: http://mip-prd-web.
azurewebsites.net
Kawasaki, " World's first liquefied hydrogen carrier Suiso Frontier launches
building an international hydrogen energy supply chain aimed at carbon-free
society, " December 11, 2019, online: https://global.kawasaki.com/en/corp/
newsroom/news/detail/?f=20191211_3487
9
Quatargas, " Operations: The trains, " online: https://www.qatargas.com/english/
operations/lng-trains
NICOLA CHODOROWSKA is a Managing Consultant in the
specialist engineering and consulting group at Wood in
Reading, UK. She holds a BEng degree in chemical engineering
and is a Fellow of the Institution of Chemical Engineers.
(12)
MARYAM FARHADI is a Process Engineer in process
engineering and capital projects at Wood in Reading, UK.
She holds an MSc degree in process systems engineering
from the University of Surrey.
$/metric t of H2

https://www.itm-power.com/news/sale-to-linde-of-world-s-largest-pem-electrolyser https://www.itm-power.com/news/sale-to-linde-of-world-s-largest-pem-electrolyser https://www.itm-power.com/news/hydeploy-uk-gas-grid-injection-of-hydrogen-in-full-operation https://www.itm-power.com/news/hydeploy-uk-gas-grid-injection-of-hydrogen-in-full-operation https://www.southhooklng.com/operations/the-supply-chain/ https://www.southhooklng.com/operations/the-supply-chain/ http://www.Ports.com http://www.ports.com/sea-route https://en.wikipedia.org/wiki/Q-Max https://www.southhooklng.com/operations/what-we-do/ https://www.southhooklng.com/operations/what-we-do/ http://mip-prd-web.azurewebsites.net/ http://mip-prd-web.azurewebsites.net/ https://global.kawasaki.com/en/corp/newsroom/news/detail/?f=20191211_3487 https://global.kawasaki.com/en/corp/newsroom/news/detail/?f=20191211_3487 https://www.qatargas.com/english/operations/lng-trains https://www.qatargas.com/english/operations/lng-trains http://www.H2-Tech.com

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