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Current Hydrogen Cost
30 October 2013
DOE Hydrogen and Fuel Cell Technical Advisory Committee
Brian Bonner
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Who is Air Products?
• Global $10B atmospheric, process and specialty gases, performance materials, equipment and services provider
• Serving industrial, energy, and technology markets worldwide
• Fortune 300 company
• Operations in over 40 countries
• 18,900 employees worldwide
• Known for our innovative and diverse culture , operational excellence and reliable supply
• Leader in sustainability
• Recognized industry leader in safety
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50+ Years of Hydrogen Experience • World’s largest producer of merchant hydrogen
• >5.0 million kg per day H2 production
• Bulk, liquid, and pipeline distribution
• Onsite generation - SMR, POX, CPOX, ATR, EHTR, electrolysis - Waste gas clean-up technologies
• Extensive experience from 40 plus worldwide central plants, ~50 small onsite generators and 500 plus customers
• H2 energy projects since 1993 > 160 hydrogen station projects > 850,000 fuelings/year
• Provide the lowest cost molecule
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Infrastructure Vision • End game is clear, transition to date has been
murky
• Lessons Learned -Improve delivery technologies -Reduced maintenance costs -Simple, modular, expandable -Piggyback on existing assets -Drive to high variable , low fixed cost option
•Consider three components of supply chain: -Infrastructure requirement at point of use -Means of hydrogen production -Delivery from point of production to point of use
Duplicate the proven gasoline forecourt 4
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Supply Options Cost Elements
• Onsite - SMR - Electrolysis
• Delivered - BHY (gas) - LHY (liquid)
• Feedstock
• Production
• Distribution
• Station Equipment
• Operations
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1kg hydrogen = 1 gasoline gallon; LHV basis
$-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Nom
inal
$U
SD p
er G
asol
ine
Gal
lon
Equi
vale
nt
Hydrogen Energy Feedstock Cost to Gasoline CostEIA 2013 Energy Outlook - Reference Case
Gasoline (gallon)
Electricity (WE kg H2 - Commercial $)
Natural Gas (SMR kg H2 - Commercial$)
Electricity (WE kg H2 - Industrial $)
Natural Gas (SMR kg H2 - Industrial $)
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Hydrogen competes with gasoline using latest BHY technology advancements
$ -
$5
$10
$15
$20
0 250 500 750 1000 1250 1500
Hydrogen Station (kg/day)
Fuel price parity with 30mpg car
$/k
g
reta
il
LHY
Onsite SMR
Onsite Electrolysis
Pipeline
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Commercial Delivered Hydrogen
Cost 200-400kg/day
Production
Distribution
Refueling Station
Operations
0
5
10
15
H2 (
$/kg
)
1- NREL, Ruth et al 2009. Central SMR production 2- US DOE 10/2010. Infrastructure (Station with Tube Trailer Delivery) 3- APCI 2011 ($1.5 million hydrogen refueling station at 250 kg/day) 4- UCD 2011 ($250k/year.; Land rent, Operations & Maintenance, Insurance, Excise Tax)
1
2
3
4
$7/kg
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Comparative Economics (200-400kg/day)
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BHY1 LHY2 WE Cent. WE Dist. SMR Dist. Pipeline
Feedstock $ 0.82 ~2X ~4X ~8X ~2X 1X
Production $ 0.68 ~2X ~1.5X ~4X ~4X 1X
Distribution $ 1.50 ~1/2X Same - - ~0.5X
Station Equipment $ 2.50 ~1.25X Same ~1.5X ~1.5X <1X
Operations $ 1.80 ~1.5X Same ~1.5X ~1.5X <1X Dispensed Price $ 7.30 $ 10.00 $ 10.50 $ 16.00 $ 10.50 $ 6.00
Feed, Prod., Dist. $ 3.00 $ 4.50 $ 6.00 $ 10.00 $ 4.25 $ 2.25
Plot space, standoff distances , utilization issues aside
1- BHY (gaseous H2) 2 –LHY (liquid H2)
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City Gate Hydrogen Is Low Cost
Hydrogen / Power / Steam to other customers
Natural Gas
Biogas
Hydrogen
Power
Steam Air Products Hydrogen Plant
• World-scale, highest efficiency hydrogen network located on a host refinery sites supplying products to multiple customers via pipeline – hydrogen, power and steam
• Efficiency significantly improved by scale and technology development to allow maximum recovery of excess process heat to produce steam and/or power
• Infrastructure offers a safe, reliable, and cost-effective platform for development of the hydrogen economy
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Hydrogen can be made efficiently with renewable biogas in significant quantities and is sustainable
US Biogas Resources
Biogas can fuel ~ 210 Million cars
• 40,000 anaerobic digester facilities: 10.8 TCF of H2 ( 128 Million cars) - Operating at OCSD today and
dispensing
• Landfill gas facilities: 7 TCF ( 82 Million cars) - Used today in AP’s CA facilities to
meet SB1505 renewable requirements to serve H2 stations
• 150 waste streams used for heat value vs. hydrogen
• Biogas adds ~$1/kg to the dispensed price.
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Summary
• End markets Total Cost of Ownership of vehicle and fuel will influence market acceptance and market scale of hydrogen as an alternative fuel. Gaseous delivered hydrogen will seed the early market.
• Other options come into play as mega stations and full deployment occur.
• Biogas conversion is the lowest cost renewable hydrogen and eliminates an existing GHG issue.
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Thank you… tell me more www.airproducts.com/h2energy
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Supporting Information
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40
45
50
55
60
65
70
75
80
0 1 10 100 1,000
Spec
ific
Ener
gy (k
Wh/
kg H
2)
Hydrogen (kg/day)
Specificy Energy (kWh/kg) Consumption of Electrolyzers
A WE (with BOP)A WE (without BOP)PEM WE (with BOP)PEM WE (without BOP)Linear (A WE (with BOP))Linear (A WE (without BOP))Linear (PEM WE (with BOP))Linear (PEM WE (without BOP))
Sources: WE manufacturer’s listed data; NREL: Danish electrolyzer study NEI-DK-5057 15
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40%
50%
60%
70%
80%
90%
100%
0 1 10 100 1,000
Spec
ific
Ener
gy (k
Wh/
kg H
2)
Hydrogen (kg/day)
Efficiency of Electrolyzers - LHV H2 Basis (33.3 kWh/kg H2)
A WE (with BOP)A WE (without BOP)PEM WE (with BOP)PEM WE (without BOP)Linear (A WE (with BOP))Linear (A WE (without BOP))Linear (PEM WE (with BOP))Linear (PEM WE (without BOP))
Sources: WE manufacturer’s listed data; NREL: Danish electrolyzer study NEI-DK-5057 16
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$-
$0.50
$1.00
$1.50
$2.00
$- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00
H2 C
ost I
mpa
ct ($
/kg)
BioMethane Cost Premium to Natural Gas ($/MM BTU)
SMR H2 Cost Premium for Biogas (Biomethane)(60% SMR efficiency; LHV H2)
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$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
$- $0.01 $0.02 $0.03 $0.04 $0.05
H2 C
ost I
mpa
ct ($
/kg)
REC Cost Premium to Electricity Cost ($/kWh)
WE Cost Premium for REC's (60% WE Efficiency; LHV H2)
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Hydrogen can make a significant contribution to energy independence
• Hydrogen can be made from multiple Hydrocarbon feedstocks. Any feedstock that can generate electricity can generate hydrogen. US natural gas reserves are: - Natural gas 238 TCF - Unconventional gas streams 400 TCF Shale formations expected 1,200 TCF
• If all U.S. transportation 300MM vehicles where to convert to hydrogen it would require ~10 TCF natural gas. - Current NG consumption is 25 TCF.
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