Emerging Economics of Hydrogen Production and Delivery - PREPARED BY - Frank Graves Josh Figueroa Ragini Sreenath

leakage) on bulk shipping and storing The clean power requirements for making the The small size of H2 molecules makes remote delivery and quantities of H2 that are sometimes projected for 2040- storage challenging 2050 (30-50 million metric tons per year) could be There are regional hydrogen pipeline networks in the huge: perhaps as much as 700GW of renewable power Southeast, and some hub pro. [...] the outsized clean production tax credits for H2 are One critical area is the resolution of the proposed 45V stimulating the development of a US H economy.[4]2 regulations which aims to ensure that power used for 45V clean H2 tax credits can be $3/kg – about half the making H2 is not inducing new GHG emissions, deemed size of recent production costs, or $22.30/MMBtu, and the “additionality pro. [...] The blue *Total Costs shown for solar + storage power scenario *Total Costs shown for solar power scenario section of the “Total: Pre-IRA” bar matches the full height of the corresponding portion in the bar to its left. [...] brattle.com | 18$/kg H2 $/kg H2 $/kg H2 By 2030, green, pink and blue H2 could be competitive with conventional natural gas By 2030, hydrogen costs could decline to between $0.9 and $2.4 per kg, or $6.7 to $17.8 per MMBtu • In comparison, the average natural gas citygate costs in the three regions ranged from $3.60 to $4.80 per MMBtu from 2020 to May 2023, and the current cost is around $3 to $4.5. [...] predicts a H2 demand of 50 MMT/yr for all need ~321 GW of electrolyzers and ~350 GW of • Enough for about 66 GW of CTs operating sectors.[26] PV with storage (≈920 TWh) at 20% CF (≈116 TWh) • If 75% of this is produced via electrolysis and • This 321 GW of electrolyzer capacity would be • Equivalent to about 2-4%[26] of then-expected half of that demand is met by baseload H , 107 flexible load (4..