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November 2002 • NREL/SR-540-32525

Hydrogen Supply: Cost


Estimate for Hydrogen
PathwaysScoping Analysis

January 22, 2002July 22, 2002

D. Simbeck and E. Chang


SFA Pacific, Inc.
Mountain View, California

National Renewable Energy Laboratory


1617 Cole Boulevard
Golden, Colorado 80401-3393
NREL is a U.S. Department of Energy Laboratory
Operated by Midwest Research Institute • Battelle • Bechtel
Contract No. DE-AC36-99-GO10337
November 2002 • NREL/SR-540-32525

Hydrogen Supply: Cost


Estimate for Hydrogen
PathwaysScoping Analysis

January 22, 2002July 22, 2002

D. Simbeck and E. Chang


SFA Pacific, Inc.
Mountain View, California

NREL Technical Monitor: Wendy Clark


Prepared under Subcontract No. ACL-2-32030-01

National Renewable Energy Laboratory


1617 Cole Boulevard
Golden, Colorado 80401-3393
NREL is a U.S. Department of Energy Laboratory
Operated by Midwest Research Institute • Battelle • Bechtel
Contract No. DE-AC36-99-GO10337
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Table of Contents
Table of Contents............................................................................................................................. i
Acronyms and Abbreviations ......................................................................................................... ii
Introduction..................................................................................................................................... 1
Summary ......................................................................................................................................... 3
Consistency and Transparency ....................................................................................................... 5
Ease of Comparison .................................................................................................................... 5
Flexibility Improvements............................................................................................................ 6
Potential Improvements for Hydrogen Economics......................................................................... 6
Central Plant Hydrogen Production ............................................................................................ 6
Hydrogen Distribution ................................................................................................................ 6
Hydrogen Fueling Stations ..................................................................................................... 7
Hydrogen Economic Module Basis ................................................................................................ 7
Hydrogen Production Technology.................................................................................................. 8
Reforming ................................................................................................................................... 9
Gasification ................................................................................................................................. 9
Electrolysis................................................................................................................................ 10
Central Plant Hydrogen Production .............................................................................................. 11
Hydrogen Handling and Storage............................................................................................... 13
Hydrogen Liquefaction ......................................................................................................... 13
Gaseous Hydrogen Compression.......................................................................................... 14
Hydrogen Storage ..................................................................................................................... 14
Hydrogen Distribution .............................................................................................................. 15
Road Delivery (Tanker Trucks and Tube Trailers)............................................................... 16
Pipeline Delivery .................................................................................................................. 17
Hydrogen Fueling Station ......................................................................................................... 17
Liquid Hydrogen Based Fueling........................................................................................... 19
Gaseous Hydrogen Based Fueling ........................................................................................ 19
Forecourt Hydrogen Production ............................................................................................... 19
Sensitivity ..................................................................................................................................... 21
Special Acknowledgement............................................................................................................ 22
References..................................................................................................................................... 22
General...................................................................................................................................... 22
Gasification ............................................................................................................................... 22
Large Steam Methane Reforming............................................................................................. 23
Small Steam Methane Reforming............................................................................................. 26
Electrolysis................................................................................................................................ 26
Pipeline ..................................................................................................................................... 27
High Pressure Storage............................................................................................................... 27
High Pressure Compression...................................................................................................... 27
Delivery..................................................................................................................................... 27

i
Acronyms and Abbreviations
ASU air separation unit
ATR autothermal reforming
BDT bone-dry ton
Btu British thermal unit
EOR enhanced oil recovery
FC fuel cell
gal gallon
GPS global positioning system
H2 molecular hydrogen
ICE internal combustion engine
IHIG International Hydrogen Infrastructure Group
kg kilogram
kg/d kilograms per day
O&M operating and maintenance
PO partial oxidation
PSA pressure swing adsorption
psig pounds per square inch gauge
SMR steam methane reforming

ii
Introduction
The International Hydrogen Infrastructure Group (IHIG) requested a comparative “scoping”
economic analysis of 19 pathways for producing, handling, distributing, and dispensing
hydrogen for fuel cell (FC) vehicle applications. Of the 19 pathways shown in Table 1, 15 were
designated for large-scale central plants and the remaining four pathways focus on smaller
modular units suitable for forecourt (fueling station) on-site production. Production capacity is
the major determinant for these two pathways. The central hydrogen conversion plant is sized to
supply regional hydrogen markets, whereas the forecourt capacity is sized to meet local service
station demand.

Table 1
IHIG Hydrogen Pathways

Original Feedstocks Revised Feedstocks Location of H2 Production


Biomass Biomass Central
Natural gas Natural gas Central and forecourt
Water Water Central and forecourt
Coal Coal Central
Petroleum coke Petroleum coke Central
Methanol Methanol Forecourt
Gasoline Gasoline Forecourt
H2 from ethylene or refinery Residue/pitch Central

The by-product source of hydrogen defined by IHIG in the original proposal has been replaced
with residue/pitch. For all practical purposes, by-product hydrogen from ethylene plants and
naphtha reforming is fully utilized by petrochemical and refining processes. In the future, the
demand for hydrogen will increase at a higher rate than the growth of by-product production.
Since the mid-1990s, the demand for hydrogen in refineries has been growing at an annual rate
of 5%-10%. More hydroprocessing treatment of feedstocks and products are required to meet
increasingly stringent clean fuel specifications for gasoline and diesel. Meanwhile, by-product
hydrogen production has been declining during the same period. Specifically:
• Hydrogen yields from naphtha reforming have been declining as refineries adjust their
operational severity downward to reduce the aromatic content in the reformat; a major
gasoline blending stock.
• Most of the new ethylene capacities are based on less hydrogen-rich liquid feedstocks
such as naphtha.

Hydrogen could be extracted from the eight feedstocks listed in Table 3 using the following five
commercially proven technologies.

Steam methane reforming


Methanol reforming
Gasoline reforming
Gasification/partial oxidation
Electrolysis

1
Table 2 shows feedstocks, associated conversion technologies, and distribution methods for the
14 central facility pathways. For central production plants, there are several intermediate steps
before the hydrogen could be dispensed into FC vehicles. The purified hydrogen has to be either
liquefied or compressed before it can be transported by cryogenic trucks, pipelines, or tube
trailers. In the base case, the delivered hydrogen has to be pressurized to 400 atmospheres (6,000
psig) to be dispensed into FC vehicles outfitted with 340 atmospheres (5,000 psig) on-board
cylinders.

Table 5 shows four forecourt hydrogen production pathways. On-site production eliminates the
need for intermediate handling steps and distribution infrastructure.

Table 2
Central Hydrogen Production Pathways

Case No. Feedstock Conversion Process Method of Distribution


C4 Natural gas Steam methane reforming Liquid H2 via truck
C11 Natural gas Steam methane reforming Gaseous H2 via tube trailer
C3 Natural gas Steam methane reforming Gaseous H2 via Pipeline
C9 Coal Partial oxidation Liquid H2 via truck
C15 Coal Partial oxidation Gaseous H2 via tube trailer
C8 Coal Partial oxidation Gaseous H2 via Pipeline
C6 Water Electrolysis Liquid H2 via truck
C12 Water Electrolysis Gaseous H2 via tube trailer
C5 Water Electrolysis Gaseous H2 via Pipeline
C2 Biomass Gasification Liquid H2 via truck
C10 Biomass Gasification Gaseous H2 via tube trailer
C1 Biomass Gasification Gaseous H2 via Pipeline
C7 Petroleum coke Gasification Gaseous H2 via Pipeline
C13 Residue Gasification Gaseous H2 via Pipeline

Table 3
Forecourt Hydrogen Production Pathways

Case No. Feedstock Conversion Process


F1 Methanol Methanol reforming
F2 Natural gas Steam methane reforming
F3 Gasoline Gasoline reforming
F4 Water Electrolysis

2
Summary
SFA Pacific has developed consistent and transparent infrastructure cost modules for producing,
handling, distributing, and dispensing hydrogen from a central plant and forecourt (fueling
station) on-site facility for fuel cell (FC) vehicle applications. The investment and operating costs
are based on SFA Pacific’s extensive database and verified with three industrial gas companies
(Air Products, BOC, and Praxair) and hydrogen equipment vendors.

The SFA Pacific cost module worksheets allow users to provide alternative inputs for all the
cells that are highlighted in light gray boxes. Flexibilities are provided for assumptions that
include production capacity, capital costs, capital build-up, fixed costs, variable costs,
distribution distance, carrying capacity, fueling station sales volume, dispensing capacity, and
others. Figure 1 compares the costs of hydrogen produced from a 150,000 kg/d central plant
based on natural gas, coal, biomass, and water, delivered to forecourt by either liquid truck, gas
tube trailer, or pipeline with a 470 kg/d forecourt production based on natural gas and water. The
base case capacity was chosen at the beginning of the project to represent infrastructure
requirements for the New York/New Jersey region.

Figure 1
Central Plant and Forecourt Hydrogen Costs

Pipeline

Water Gas Trailer

Liquid Tanker

Forecourt

Biomass Pipeline

Gas Trailer

Liquid Tanker

Pipeline

Coal Gas Trailer

Liquid Tanker
Production

Pipeline
Delivery
Gas Trailer
Natural Gas
Liquid Tanker Dispensing

Forecourt

0 2 4 6 8 10 12 14
Hydrogen Cost, $/kg

Source: SFA Pacific, Inc.

3
Generally, the higher costs of commercial rates for feedstock and utilities coupled with lower
operating rates lead to higher hydrogen costs from forecourt production. Regardless of the
source for hydrogen, the above comparison shows the following trends for central plant
production.
• The energy intensive liquefaction operation leads to the highest production cost, but
incurs the lowest transportation cost
• The high capital investment required for pipeline construction makes it the most
expensive delivery method
• The cost for gas tube trailer delivery is also high, slightly less than the pipeline cost,
because the low hydrogen density limits each load to about 300 kg.

Other findings from this evaluation could facilitate the formulation of hydrogen infrastructure
development strategies from the initial introductory period through ramp-up to a fully developed
market.

• Advantages of economy of scale and lower industrial rates for feedstock and power
compensate for the additional handling and delivery costs needed for distributing
hydrogen to fueling stations from central plants.
• Hydrocarbon feedstock-based pathways have economic advantages in both investment
and operating costs over renewable feedstocks such as water and biomass.
• Economics of forecourt production suffer from low utilization rates and higher
commercial rates for feedstock and electricity. For natural gas based feedstock, the
hydrogen costs from forecourt production are comparable to those of hydrogen produced
at a central plant and distributed to fueling stations by tube trailer, and are 20% higher
than the liquid tanker truck delivery pathway.
• To meet the increasing demand during the ramp-up period, a “mix and match” of the
three delivery systems (tube trailers, tanker trucks, and pipelines) is a likely scenario.
Tube trailers, which haul smaller quantities of hydrogen, are probably best suited for the
introductory period. As the demand grows, cryogenic tanker trucks could serve larger
markets located further from the central plant. As the ramp-up continues, additional
production trains would be added to the existing central plants, and ultimately a few
strategically placed hydrogen pipelines could connect these plants to selected stations and
distribution points.
• On-board liquid (methanol or naphtha) reforming or direct FC technology could leverage
the existing liquids infrastructure. It would eliminate costly hydrogen delivery and
dispensing infrastructures, as well as avoid regulatory issues regarding hydrogen
handling.

4
Consistency and Transparency
The SFA Pacific cost modules are “living documents.” The flexible inputs allow revisions for
infrastructure adjustments and future improved capital and operating cost bases.

Ease of Comparison
Table 4 shows that, at comparable capacity, SFA Pacific’s models yield cost estimates similar to
those developed by Air Products for the Hydrogen Infrastructure Report [1] sponsored by Ford
and the U.S. Department of Energy (DOE). Key findings from the Air Products evaluation were
also published in the International Journal of Hydrogen Energy [2].

Table 4
Comparison of Hydrogen Costs Developed by SFA Pacific and Air Products

Investment ($million) Hydrogen Cost ($/kg)


H2 Capacity SFA Air SFA Air
Feedstock (t/d) H2 Source Pacific Products Pacific Products
Natural Gas 27 Liquid 102 63 4.34 3.35
Natural Gas 27 Pipeline a 71 82 3.08 2.91
Natural Gas 2.7 Forecourt 6.2 9.6 3.30 3.57
Methanol 2.7 Forecourt 6.0 6.8 3.46 3.76
a
To be consistent with the estimates from Air Products, SFA Pacific excluded fueling state investment and
operating costs in this comparison.

Source: SFA Pacific, Inc.

The differences between SFA Pacific and Air Products costs for hydrogen delivered by
cryogenic tanker trucks could be attributed to a large discrepancy shown in the capital
investment for fueling station infrastructure (Table 5).

Table 5
Capital Investment Allocations for Methane Based Liquefied Hydrogen
($Million)

SFA Pacific Air Products


Steam Methane Reformer 21 19
Liquefier 44 41
Tanker Trucks 7 n/a
Fueling Stations 30 3
Total 102 63

Source: SFA Pacific, Inc.

5
Flexibility Improvements
Currently, the central plant storage matches the form of hydrogen for a designated delivery
option. A separate and independent module for handling and storing purified gaseous hydrogen
would increase the model’s flexibility in evaluating mix-match storage and delivery options to
meet the rising demand during the ramp-up period.

Potential Improvements for Hydrogen Economics


All hydrogen pathways were developed based on conventional technology and infrastructure
deployment. However, new technologies and novel operating options could potentially reduce
the cost of hydrogen, thus making it a more attractive fuel option.

Central Plant Hydrogen Production


• Polygeneration (a term referring to the co-production of electric power for sale to the
grid) would improve the hydrogen economics. Central gasification units have advantages
of economy of scale and lower marginal operating and maintenance costs compared with
the same option for forecourt production.
• Installing a liquefaction unit would lower the central storage costs and provide greater
flexibility. It is more practical to store large amounts of liquid than gaseous hydrogen.
More storage capacity would allow the hydrogen plant to operate at a higher utilization
rate. If the hydrogen is to be transported either by pipelines or tube trailers, a slipstream
from the boil-off could supply the gaseous hydrogen for distribution.
• Using a hybrid technology or heat-exchange design improves steam reforming operation
and increases conversion. Autothermal reforming (ATR), which combines partial
oxidation with reforming, improves heat and temperature management. Instead of a
single-step process, ATR is a two-step process in hydrogen plants—the partially
reformed gases from the primary reformer feed a secondary oxygen blown reformer with
additional methane. The exothermic heat release from the oxidation reaction supplies the
endothermic heat needs of the reforming reactions. Including reforming reactions allows
co-feeding of CO2 or steam to achieve a wider range of H2/CO ratios in the syngas.
• Capturing CO2 for enhanced oil recovery (EOR) or for future CO2 trading could improve
the economics of hydrogen production if CO2 mitigation is mandated and supported by
trading.

Hydrogen Distribution
• Hydrogen pipeline costs could be reduced by placing the pipelines in sewers, securing
utility status, or converting existing natural gas pipelines to carry a mixture of
hydrogen/natural gas (town gas).
• Using ultra high-pressure (10,000 psig) tube trailers could potentially triple the carrying
load.

6
Hydrogen Fueling Stations
The infrastructure investment for fueling stations could reach 60% of the total capital costs. By
using the global positioning system (GPS), which has gained wide consumer acceptance, we
could significantly lower the traditional strategy of 25% urban and 50% rural area hydrogen
service station penetration. The GPS system would enable FC vehicle drivers to locate fueling
stations more efficiently. Additional strategies for reducing infrastructure investment include:
• Using ultra high-pressure (about 800 to 900 atmospheres) vessels to increase forecourt
hydrogen storage capacity. It may be possible to have large vertical vessels underground
or to use them as canopy supports to minimize land usage.
• Replacing on-board hydrogen cylinders with pre-filled ones instead of the traditional fill-
up option could eliminate fueling station infrastructure investment.
• Dispensing liquid hydrogen into FC vehicles (an idea brought up by BMW during the
April 4, 2002 meeting) could eliminate the need for expensive compression and storage
costs at forecourts. However, an innovative on-board liquid hydrogen storage design is
needed to prevent boil-off when the FC vehicle is not in use.

Hydrogen Economic Module Basis


SFA Pacific developed simplified energy, material balance, capital investment, and operating
costs to achieve transparency and consistency. Cost estimates are presented in five workbooks
(Appendix A) include central plant, distribution, fueling station, forecourt, and overall summary.
Each worksheet includes a simplified block flow diagram and major line items for capital and
operating costs. Capital investment and operating costs are based on an extensive proprietary
SFA Pacific database, which has been verified with industrial gas producers and hydrogen
equipment vendors. The database contains reliable data for large and small-scale steam methane
reforming and gasification units. Although SFA has confirmed the estimates for electrolyzers
with industrial gas companies, they could probably be improved further. There are many
advocates and manufacturers giving quotes that are significantly lower than those used in this
analysis. Some of these discrepancies could be attributed to the manufacturers’ exclusion of a
processing step to remove contaminants, and others could result from optimistic estimates based
on projected future breakthroughs.
The investment and operating costs modules are developed based upon commonly accepted cost
estimating practices. Capital build-up is based on percentages of battery limit process unit costs.
Variable non-fuel and fixed operating and maintenance (O&M) costs are estimated based on
percentages of total capital per year. Capital charges are also estimated as percentages of total
capital per year assumptions for capital investment. Operating costs (variable and fixed) and
capital charges are listed in Table 6. For ease of comparison, all unit costs are shown in $/million
Btu, $/1,000 scf, and $/kg ($/gal gasoline energy equivalent).
The capital cost estimates are based on U.S. Gulf Coast costs. A location factor adjustment is
provided to facilitate the evaluation of costs for three targeted states: high cost urban areas such
as New York/New Jersey and California and low-cost lower population density Texas. Two
provisions are made at forecourt/fueling stations to allow “what-if” analysis: (1) road tax input
accommodates possible government subsidies to jump-start the hydrogen economy and (2) gas
station mark-ups permit incentives for lower revenue during initial stages of low hydrogen
demand.

7
Table 6
Capital and Operating Costs Assumptions

Capital Build-up % of Process Unit Typical Range


General Facilities 20 20-40 a
Engineering, Permitting, and 15 10-20
Startup
Contingencies 10 10-20
Working Capital, Land, and 7 5-10
Others

Operating Costs Build-up %/yr of Capital Typical Range


Variable Non-Fuel O&M 1.0 0.5-0.5
Fixed O&M 5.0 4-7
Capital Charges 18.0 20-25 for refiners
14-20 for utilities

a
20%-40% for steam methane reformer and an additional 10% for gasification.

Source: SFA Pacific, Inc.

Hydrogen Production Technology


Three distinct types of commercially proven technologies were selected to extract hydrogen from
the eight feedstocks. Fundamental principles for each technology apply regardless of the unit
size. A brief technical review of reforming, gasification, and electrolysis describes the major
processing steps required for each hydrogen production pathway.

• Reforming is the technology of choice for converting gaseous and light liquid
hydrocarbons
• Gasification or partial oxidation (PO) is more flexible than reforming—it could process a
range of gaseous, liquid, and solid feedstocks.
• Electrolysis splits hydrogen from water.

8
Reforming
Steam methane reforming (SMR), methanol reforming, and gasoline reforming are based on the
same fundamental principles with modified operating conditions depending on the hydrogen-to-
carbon ratio of the feedstock.

SMR is an endothermic reaction conducted under high severity; the typical operating conditions
are 30 atmospheres and temperatures exceeding 870°C (1,600°F). Conventional SMR is a fired
heater filled with multiple tubes to ensure uniform heat transfer.

CH4 + H2O <=> 3H2 + CO (1)

Typically the feedstock is pretreated to remove sulfur, a poison which deactives nickel reforming
catalysts. Guard beds filled with zinc oxide or activated carbon are used to pretreat natural gas
and hydrodesulfurization is used for liquid hydrocarbons. Commercially, the steam to carbon
ratio is between 2 and 3. Higher stoichiometric amounts of steam promote higher conversion
rates and minimize thermal cracking and coke formation.

Because of the high operating temperatures, a considerable amount of heat is available for
recovery from both the reformer exit gas and from the furnace flue gas. A portion of this heat is
used to preheat the feed to the reformer and to generate the steam for the reformer. Additional
heat is available to produce steam for export or to preheat the combustion air.

Methane reforming produces a synthesis gas (syngas) with a 3:1 H2/CO ratio. The H2/CO ratio
decreases to 2:1 for less hydrogen-rich feedstocks such as light naphtha. The addition of a CO
shift reactor could further increase hydrogen yield from SMR according to Equation 2.

CO + H2O => H2 + CO2 (2)

The shift conversion may be conducted in either one or two stages operating at three temperature
levels. High temperature (660°F or 350°C) shift utilizes an iron-based catalyst, whereas medium
and low (400°F or 205°C) temperature shifts use a copper based catalyst. Assuming 76% SMR
efficiency coupled with CO shift, the hydrogen yield from methane on a volume is 2.4:1.

There are two options for purifying crude hydrogen. Most of the modern plants use multi-bed
pressure swing adsorption (PSA) to remove water, methane, CO2, N2, and CO from the shift
reactor to produce a high purity product (99.99%+). Alternatively, CO2 could be removed by
chemical absorption followed by methanation to convert residual CO2 in the syngas.

Gasification
Traditionally, gasification is used to produce syngas from residual oil and coal. More recently, it
has been extended to process petroleum coke. Although not as economical as SMR, there are a
number of natural gas-based gasifiers. Other feedstocks include refinery wastes, biomass, and
municipal solid waste. Gasification of 100% biomass feedstock is the most speculative
technology used in this project. Total biomass based gasification has not been practiced

9
commercially. However, a 25/75 biomass/coal has been commercially demonstrated by Shell at
their Buggenm refinery. The biomass is dried chicken waste.

In addition to the primary reaction shown by Equation 3, a variety of secondary reactions such as
hydrocracking, steam gasification, hydrocarbon reforming, and water-gas shift reactions also
take place.

CaHb + a/2O2 => b/2H2 + aCO (3)

For liquid and solids gasification, the feedstocks react with oxygen or air under severity
operating conditions (1,150°C -1,425°C or 2,100°F -2,600°F at 400-1,200 psig). In hydrogen
production plant, there is an air separation unit (ASU) upstream of the gasifier. Using oxygen
rather than air avoids downstream nitrogen removal steps.

In some designs, the gasifiers are injected with steam to moderate operating temperatures and to
suppress carbon formation. The hot syngas could be cooled directly with a water quench at the
bottom of the gasifier or indirectly in a waste heat exchanger (often referred to as a syngas
cooler) or a combination of the two. Facilitating the CO shift reaction, a direct quench design
maximizes hydrogen production. The acid gas (H2S and CO2) produced has to be removed from
the hydrogen stream before it enters the purification unit.

When gasifying liquids, it is necessary to remove and recover soot (i.e., unconverted feed
carbon), ash, and any metals (typically vanadium and nickel) that are present in the feed. The
recovered soot can be recycled to the gasifier, although such recycling may be limited when the
levels of ash and metals in the feed are high. Additional feed preparation and handling steps
beyond the basic gasification process are needed for coal, petroleum coke, and other solids such
as biomass.

Electrolysis
Electrolysis is decomposition of water into hydrogen and oxygen, as shown in Equation 4.
H2O + electricity => H2 + ½ O (4)

Alkaline water electrolysis is the most common technology used in larger production capacity
units (0.2 kg/day). In an alkaline electrolyzer, the electrolyte is a concentrated solution of KOH
in water, and charge transport is through the diffusion of OH- ions from cathode to anode.
Hydrogen is produced at the cathode with almost 100% purity at low pressures. Oxygen and
water by-products have to be removed before dispensing.

Electrolysis is an energy intensive process. The power consumption at 100% efficiency is about
40 kWh/kg hydrogen; however, in practice it is closer to 50 kWh/kg. Since electrolysis units
operate at relatively low pressures (10 atmospheres), higher compression is needed to distribute
the hydrogen by pipelines or tube trailers compared to other hydrogen production technologies.

10
Central Plant Hydrogen Production
Figure 2 shows that each central production hydrogen pathway consists of four steps: hydrogen
production, handling, distribution, and dispensing.

Figure 2
Central Plant Hydrogen Production Pathway

H2 Production H2 Handling H2 Distribution H2 Dispensing


Biomass Coal Liquefaction Cryogenic Truck Vaporized liquid
Water Residue Compression Tube Trailer Compressed gas
Natural gas Coke Pipeline

Table 7 lists feedstocks and utility costs used in this analysis. Central plant hydrogen production
benefits from lower industrial rates, whereas the fueling stations are charged with the higher
commercial rates.

Table 7
Central Hydrogen Production Feedstock and Utility Costs

Unit Cost
Natural gas (industrial) $3.5/MMBtu HHV
Electricity (industrial) $0.045/kW
Electricity (commercial) $0.070/kW
Biomass $57/bone dry ton
Coal $1.1/MMBtu dry HHV
Petroleum coke $0.2/MMBtu dry HHV
Residue (Pitch) $1.5/MMBtu dry HHV

Source: Annual Energy Outlook 2002 Reference Case Tables, EIA.

The design production capacity for each central plant ranges from 20,000 kg/d to 200,000 kg/d
hydrogen with a 90% utilization rate. An arbitrary design capacity of 150,000 kg/d has been
chosen for discussion purposes. Table 8 shows that the cost of hydrogen for hydrocarbon based
feedstock is lower than renewables. For each feedstock, the cost of hydrogen via cryogenic liquid
tanker truck delivery pathway is 10%-25% lower than by tube trailer and 15%-30% less than by
pipeline. Since the cost of liquid delivery is relatively small (less than 5%), the costs for
hydrocarbon based feedstock, production, and fueling account for close to 67% and 33% of the
total hydrogen costs, respectively. For renewables (biomass and water), the production cost
accounts for 70%-80% of the total hydrogen cost. With high investment costs, the tube trailer
and pipeline delivery account for 50% of the total cost.

11
Table 8
Summary of Central Plant Based Hydrogen Costs
(1,000 kg/d hydrogen)

Liquid Tanker Gas Tube Pipeline,


Delivery Pathway Truck, $/kg Trailer, $/kg $/kg
Natural Gas
Production 2.21 1.30 1.00
Delivery 0.18 2.09 2.94
Dispensing 1.27 1.00 1.07
Total 3.66 4.39 5.00

Coal
Production 3.06 2.09 1.62
Delivery 0.18 2.09 2.94
Dispensing 1.27 1.00 1.07
Total 4.51 5.18 5.62

Biomass
Production 3.53 2.69 2.29
Delivery 0.18 2.09 2.94
Dispensing 1.27 1.00 1.07
Total 4.98 5.77 6.29

Water
Production 6.17 5.30 5.13
Delivery 0.18 2.09 2.94
Dispensing 1.27 1.00 1.07
Total 7.62 8.39 9.13

Petroleum Coke
Production 1.35
Delivery 2.94
Dispensing 1.07
Total 5.35

Residue
Production 1.27
Delivery 2.94
Dispensing 1.07
Total 5.27

Source: SFA Pacific, Inc.

12
Numerous studies have been conducted to evaluate the economics of using renewable feedstocks
to produce energy and fuels. Waste biomass and co-product biomass are very seasonal and have
high moisture content, except for field-dried crop residues. As a result, they require more
expensive storage and extensive drying before gasification. Furthermore, very limited supplies
are available and quantities are not large or consistent enough to make them a viable feedstock
for large-scale hydrogen production. Cultivated biomass is the only guaranteed source of
biomass feedstock, and as a crop, the yield is relatively low (10 ton/hectare). As a result, large
land mass is required to provide a steady supply of feedstock. This dedicated renewable biomass
comes at a cost of $57/bone dry ton (BDT), which includes $500/hectare/yr and $7/BTD delivery
cost. However, available biomass could supplement other solid feeds to maximize the utilization
of the gasification unit. Finally, biomass gasification processes are not effective for pure
hydrogen production due to their air-blown operations or a product gas that is high in methane
and requires additional reforming to produce hydrogen.

Water is another feedstock commonly referred to as a renewable energy source. Although


hydrogen occurs naturally in water, the extraction costs are still considerably higher than
conventional hydrocarbon based energy sources.

Hydrogen Handling and Storage


Purified hydrogen has to be either liquefied for cryogenic tanker trucks or compressed for
pipeline or tube trailer delivery to fueling stations.

Hydrogen Liquefaction
Liquefaction of hydrogen is a capital and energy intensive option. The battery limit investment is
$700/kg/d for a 100,000 kg/d hydrogen plant, and compressors and brazed aluminum heat
exchanger cold boxes account for most of the cost. The total installed capital cost for the
liquefier, excluding land and working capital is $1,015 kg/d, which agrees well with the $1,125
estimate from Air Products. Multi-stage compression consumes about 10-13 kWh/kg hydrogen.

Gaseous crude hydrogen from the PSA unit undergoes multiple stages of compression and
cooling. Nitrogen is used as the refrigerant to about 195°C (-320°F). Ambient hydrogen is a
mixture 75% ortho- and 25% para-hydrogen, whereas liquid hydrogen is almost 100% para-
hydrogen. Unless ortho-hydrogen is catalytically converted to para-hydrogen before the
hydrogen is liquefied, the heat of reaction from the exothermic conversion of ortho-hydrogen to
para-hydrogen, which doubles the latent heat of vaporization, would cause excessive boil-off
during storage. The liquefier feed from the PSA unit mixes with the compressed hydrogen and
enters a series of ortho/para-hydrogen converters before entering the cold end of the liquefier.
Further cooling to about -250°C (-420°F) is accomplished in a vacuum cold box with brazed
aluminum flat plate cores. The remaining 20% ortho-hydrogen is converted to achieve 99%+
para-hydrogen in this section.

13
Gaseous Hydrogen Compression
Gaseous hydrogen compressors are major contributors to capital and operating costs. To deliver
high-pressure hydrogen, 3-5 stages of compression are required because water-cooled positive-
displacement compressors could only achieve 3 compression ratios per stage. Compression
requirements depend on the hydrogen production technology and the delivery requirements. For
pipeline delivery, the gas is compressed to 75 atmospheres for 30 atmospheres delivery. Higher
pressures are used to compensate for frictional loss in pipelines without booster compressors
along the pipeline system. The gaseous hydrogen has to be compressed to 215 atmospheres to fill
tube trailers. In this study, the unit capital cost is between $2,000/kW and $3,000/kW and the
power requirement ranged from 0.5 kW/kg/hr to 2.0 kW/kg/hr.

Hydrogen Storage
On-site storage allows continuous hydrogen plant operation in order to achieve higher utilization
rates. It is more practical to store large amounts of hydrogen as liquid. At less than $5/gallon
(physical volume) capital cost, liquid hydrogen storage is relatively inexpensive compared to
compressed gaseous hydrogen. Table 9 shows that hydrogen is the lowest energy density fuel on
earth. It would take 3.73 gallons of liquid hydrogen to provide equivalent energy of one gallon of
gasoline. Gaseous hydrogen has to be pressurized for storage. At the base case pressure of 400
atmospheres (6,000 psig), it would require about 8 gallons of gaseous hydrogen to have the same
energy content as one gallon of gasoline. The higher the gas pressure, the lower the storage
volume needed. However, the tube becomes weight limited as the thickness of the steel wall
increases to prevent embrittlement (cracking caused by hydrogen migrating into the metal).

Table 9
Density of Vehicle Fuel

Fuel Type Density (kg/l)


Compressed Hydrogen 0.016
Gasoline 0.8
Methanol 0.72

Figure 3 shows how the cost of gaseous storage tubes increases with pressure. The cost could
increase from less than $400/kg hydrogen at 140 atmospheres to $2100/kg hydrogen at 540
atmospheres. Companies such as Lincoln Composites and Quantum Technologies are developing
new synthetic materials to withstand high pressures at a larger range of temperatures.

14
Figure 3
Hydrogen Storage Container Costs
2500

2000
Storage Container, $/kg H2

1500

1000

500

0
0 100 200 300 400 500 600
Hydrogen Storage Pressure, Atmospheres

Source: SFA Pacific, Inc.

Hydrogen Distribution
This study includes three hydrogen distribution pathways: cryogenic liquid trucks, compressed
tube trailers, and gaseous pipelines. Figure 4 shows that each option has a distinct range of
practical application.

Figure 4
Hydrogen Distribution Options

Pipeline

Liquid Truck

Tube Trailer

0.1 1 10 100
Million SCF/D
0.2 2.4 24 241
Ton Per Day
Source: Air Products.

15
A combination of these three options could be used during various stages of hydrogen fuel
market development.

• Tube trailers could be used during the initial introductory period because the demand
probably will be relatively small and it would avoid the boil-off incurred with liquid
hydrogen storage.
• Cryogenic tanker trucks could haul larger quantities than tube trailers to meet the
demands of growing markets.
• Pipelines could be strategically placed to transport hydrogen to high demand areas as
more production capacities are placed on-line.

Road Delivery (Tanker Trucks and Tube Trailers)


Based on the assumptions shown in Table 10, the cost of liquid tanker truck delivery is about
10% of tube trailer delivery ($0.18/kg vs. $2.09/kg).

Table 10
Road Hydrogen Delivery Assumptions

Cryogenic Truck Tube Trailer


Load, kg 4,000 300
Net delivery, kg 4,000 250
Load/unload, hr/trip 4 2
Boil-off rate, %/day 0.3 na
Truck utilization rate, % 80 80
Truck/tube, $/module 450,000 100,000
Undercarriage, $ 60,000 60,000
Cab, $ 90,000 90,000

Source: SFA Pacific, Inc.

Delivery by cryogenic liquid hydrogen tankers is the most economical pathway for medium
market penetration. They could transport relatively large amounts of hydrogen and reach markets
located throughout large geographic areas. Tube trailers are better suited for relatively small
market demand and the higher costs of delivery could compensate for losses due to liquid boil-
off during storage. However, high-pressure tube trailers are limited to meeting small hydrogen
demands. Typically, the tube-to-hydrogen weight ratio is about 100-150:1. A combination of low
gaseous hydrogen density and the weight of thick wall, high quality steel tubes (80,000 pounds
or 36,000 kilograms) limit each load to 300 kilograms of hydrogen. In reality, only 75%-85% of
each load is dispensable, depending on the dispensing compressor configuration. Unlike tanker
trucks that discharge their load, the tube and undercarriage are disconnected from the cab and left
at the fueling station. Tube trailers are used not only as transport container, but also as on-site

16
storage. As a result, the total number of tubes provided equals the number of tubes left at the
fueling stations and those at the central plants to be picked up by the returning cabs.

Liquid hydrogen flows into and out of the tanker truck by gravity and it takes about two hours to
load and unload the contents. SFA Pacific estimates the physical delivery distance for
truck/trailers is 40% longer than the assumed average distance of 150 kilometers between the
central facility and fueling stations.

Pipeline Delivery
Pipelines are most effective for handling large flows. They are best suited for short distance
delivery because pipelines are capital intensive ($0.5 to $1.5 million/mile). Much of the cost is
associated with acquiring right-of-way. Currently, there are 10,000 miles of hydrogen pipelines
in the world. At 250 miles, the longest hydrogen pipeline connects Antwerp and Normandy.

Operating costs for pipelines are relatively low. To deliver hydrogen to the fueling stations at 30
atmospheres, the pressure drop could be compensated with either booster compressors or by
compressing the hydrogen at the central plant. In this study, the pipeline investment is based on
four pipelines radiating from the central plant.

Hydrogen Fueling Station


The conceptual hydrogen fueling station for this study is designed based on equivalent
conventional internal combustion engine (ICE) requirements as shown in Table 11.

Table 11
Assumed FC Vehicle Requirements

ICE-gasoline FC requirement
Vehicle mileage 23 km/liter 23 km/liter
Vehicle annual mileage 12,000 miles 218 kg H2 or 12,000 miles
Fuel sales per station 150,000 gal/month 10,000 kg H2/monthor 10,000 gal
gasoline equivalent

Source: SFA Pacific, Inc.

Table 12 shows that the key fueling station design parameters. At a 70% operating rate, each
service station dispenses about 329 kg/d, assuming a daily average of 4.0 kg per fill-up and five
fill-ups an hour. Each fueling hose is sized to meet daily peak demand.

17
Table 12
Fueling Dispenser Design Basis

Design capacity 470 kg/d


Operating rate 70%
Operating capacity 329 kg/d
Number of dispenser 2
Average fill-up rate 4 kg
Average number of fill-up 5 /hr
Peak fill-up rate (3 times daily average) 48 kg/hr
Dispensing pressure, psig 6,000
Source: SFA Pacific, Inc.

Sizing hydrogen dispensers is no different than sizing gasoline dispensers; they must be designed
to meet peak demands. As shown in Figure 5, the peak demand could be triple that of the daily
average.

Figure 5
Fueling Station Dispensing Utilization Profile

0.12
Fractional Load/Hr

0.1
0.08
0.06
0.04
0.02
0
0 2 4 6 8 10 12 14 16 18 20 22 24
Time of Day

Source: Praxair.

This study developed analyses for two types of high-pressure gaseous fueling stations: one to
handle liquid based hydrogen and the other for gaseous hydrogen. Components handling
compressed hydrogen (6,000 psig) are the same regardless of the form of hydrogen delivered to
the fueling station. Since positive displacement pumps and compressors cannot provide
instantaneous load or meet the high-rate demand for dispensing hydrogen directly to FC vehicles,
each filling station is provided with three hours of peak demand high-pressure hydrogen buffer
storage. The dispenser meters the hydrogen into a FC vehicle fitted with 5,000 psig cylinders.

18
Liquid Hydrogen Based Fueling
Liquid hydrogen from storage (15,000 gallons) is pressurized to 6,000 psig with variable speed
reciprocating positive displacement pumps. An ambient or natural convection vaporizer, which
uses ambient air and condensed water to supply the heat requirement for vaporizing and warming
the high-pressure gas, does not incur additional utility costs.

Gaseous Hydrogen Based Fueling


Gaseous hydrogen could be delivered either by pipeline at 30 atmospheres or by tube trailer at
215 atmospheres to the fueling station. To minimize the high cost of hydrogen storage, both
pipeline and tube trailer gases are compressed to 6,000 psig and held in a buffer storage. Two
other possible options (multi-stage cascade system and booster system) require considerably
more expensive hydrogen storage.

Forecourt Hydrogen Production


Forecourt production pathways were developed to evaluate the potential economic advantages of
placing small modular units at fueling stations to avoid the initial investment of under utilized
large central facilities and delivery infrastructures. The forecourt hydrogen facility is sized to
supply and dispense the same amount of hydrogen as each fueling station in the central plant
pathways. Each unit is designed to produce 470 kg/d of hydrogen with a 70% utilization rate.
Figure 6 shows that forecourt hydrogen production is a self-contained operation. Ideally,
hydrogen is compressed to 400 atmospheres (6,000 psig) after purification and dispensed directly
into the FC vehicle with 340 atmosphere (5,000 psig) cylinders.

Figure 6
Forecourt Hydrogen Production Pathways

H2 Production Dispensing
Water High pressure gas
Natural gas
Methanol
Gasoline

Source: SFA Pacific, Inc.

Table 13 lists commercial rates for feedstocks and power. The commercial rates charged to small
local service stations are consistently 50%-70% higher than industrial rates for large production
plants. Natural gas delivered to forecourt costs 70% more than that delivered to a central facility
($6/million Btu vs. $3.5/million Btu) and the power cost is 55% higher (7¢/kWh vs. 4.5¢/kWh).
Often, proponents of a hydrogen economy provide cost estimates based on off-peak power rates
(~$0.04/kWh). Off-peak is only available for 12 hours, after which the forecourt would be
charged with peak rates ($0.09/kWh). To circumvent peak power rates, forecourt plants have to

19
be built with oversized units operated at low utilization rates with large amounts of storage. This
option would require considerable additional capital investment.

Instead of developing a complete production and delivery infrastructure for methanol, this
evaluation uses market prices for methanol. Methanol prices are based on current supplies to
chemical markets, and distribution costs per gallon of methanol are twice that of gasoline per
gallon or four times that of gasoline on an energy basis.

Table 13
Forecourt Hydrogen Production Feedstock and Utility Costs

Unit Cost
Natural gas (commercial) $5.5/MMBtu HHV
Electricity (commercial) $0.07/kW
Methanol $7.0/MMBtu HHV
Gasoline $6.0/MMBtu HHV

Source: Annual Energy Outlook 2002 Reference Case Tables, EIA.


Current Methanol Price, Methanex, February, 2002.

Table 14 shows that the costs for forecourt production of hydrogen from hydrocarbon based
feedstocks are within 10%-15% of each other, ranging from $4.40/kg to $5.00/kg hydrogen. The
cost for electrolysis based hydrogen is two to three times that of the other three feedstocks. The
high cost of electrolytic hydrogen is attributable to high power usage and high capital costs—
electricity and capital charges account for 30% and 50% of the total cost, respectively.

Table 14
Summary of Forecourt Hydrogen Costs
(470 kg/d Hydrogen)

Feedstock $/kg
Methanol 4.53
Natural Gas 4.40
Gasoline 5.00
Water 12.12

Source: SFA Pacific, Inc.

For the two feedstocks common to both the central and forecourt plant, Table 15 shows that the
lower infrastructure requirements of forecourt production do not compensate for the higher
operating costs.

20
Table 15
Hydrogen Costs: Central Plant vs. Forecourt
($/kg Hydrogen)

Central Plant a Forecourt


Natural Gas 3.66 4.40
Water 7.62 12.12
a
Liquid hydrogen delivery pathway.

Source: SFA Pacific, Inc.

The proposed option of utilizing the hydrogen produced at the forecourt to fuel on-site power
generation during initial low hydrogen demand does not make economic sense. Excluding the
high capital cost of fuel cell power generation and commercial scale grid connections for
exporting electricity, the marginal load dispatch cost of power alone would make this strategy
non-competitive. As a result, this pathway was eliminated from our analysis during the kick-off
meeting on January 23, 2002.

Sensitivity
SFA Pacific developed a 700 atmospheres (10,000 psig) FC vehicle sensitivity case. This ultra
high pressure would allow the vehicle to meet ICE vehicle standards (equal or greater distance
between fill ups). Similarly detailed worksheets for the ultra high-pressure case are presented in
Appendix B.

Between 1920 and 1950, the process industry had extensive commercial operating experience
with 10,000 psig operation in ammonia synthesis and the German coal hydrogenations plants.
Improvements in catalytic activity had lowered the operating pressures for these processes,
which in turn significantly reduced capital and operating costs. Even though there is less demand
for equipment to handle very high-pressure hydrogen, several companies still manufacture ultra
high-pressure compressors and vessels. The cost of hydrogen compressors capable of handling
875 atmospheres (13,000 psig) is significantly more than the base case ($4,000/kW vs.
$3,000/kW). The higher cost could be attributed mostly to expensive premium-steels to avoid
hydrogen stress cracking at ultra high pressures. However, data on these costs are not readily
available and are also inconsistent due to the lack of common use, small sizes, and the special
fabrication requirements. Until a time when composite material becomes economically viable for
high-pressure storage, it is may be best to develop the fueling infrastructure for 5,000 psig FC
vehicle cylinders.

21
Special Acknowledgement
SFA Pacific would like to express our gratitude to the following three industrial gas companies
for their insightful discussion and comments after reviewing our draft cost estimates for the
hydrogen production, delivery, and dispensing infrastructure.

Air Products and Chemicals


BOC
Praxair

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22
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Large Steam Methane Reforming


1. J.N. Gøl and I. Dybkjaer (Haldor Topsøe), “Options for Hydrogen Production,” HTI
Quarterly, Summer 1995.

2. R. Vannby and C. Stub Nielsen (Haldor Topsøe) and J.S. Kim (Samsung-BP Chemicals),
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6. N.R. Udengaard and J-H Bak Hansen (Haldor Topsøe) and D.C. Hanson and J.A. Stal
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23
10. I. Dybkjaer and J.N. Gøl (Haldor Topsøe) and D. Cieutat and R. Eyguessier (Air Liquide),
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1997 NPRA Annual Meeting, San Antonio, Texas, March 16-18, 1997.

11. U.S. Department of Energy, personal communication, May 1997.

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13. E. Kikuchi, “Hydrogen-permselective Membrane Reactors,” Cattech, March 1997, pp. 67-
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14. R.W. Morse, P.W. Vance and W.J. Novak (Acreon Catalysts) and J.P. Franck and J.C.
Plumail (Procatalyse), “Improved Reformer Yield and Hydrogen Selectivity with Tri­
metallic Catalyst,” presented at the 1995 NPRA Annual Meeting, San Francisco,
California, May 19-21, 1995.

15. A.K. Rhodes, “Catalyst Suppliers Consolidate Further, Offer More Catalysts,” Oil and Gas
Journal, October 2, 1995, p. 37.

16. “Refining Processes ‘96,” Hydrocarbon Processing, November 1996, pp. 96-98.

17. S. Ratan (KTI), “Flexibility of ‘On-Purpose’ Hydrogen Generation in Refineries,”


presented at AIChE Spring meeting, Houston, Texas, March 9-13, 1997.

18. B.J. Cromarty, K. Chlapik, and D.J. Ciancio (ICI Katalco), “The Application of
Prereforming Technology in the Production of Hydrogen,” presented at the 1993 NPRA
Annual Meeting, San Antonio, Texas, March 21-23, 1997.

19. I. Dybkjaer, “Tubular Reforming and Autothermal Reforming of Natural Gas - An


Overview of Available Processes,” Fuel Processing Technology, Vol. 42, pp. 85-107,
1995.

20. “Autothermal Catalytic Reforming,” company brochure, Lurgi Öl Gas Chemie GmbH,
1994.

21. Krupp Uhde GmbH, “CAR - A Modern Gas Generation Unit,” report on Combined
Autothermal Reforming provided to SFA Pacific by (undated).

22. H. Göhna (Lurgi), “Low-cost Routes to Higher Methanol Capacity,” Nitrogen, No. 224,
November/December 1996.

23. T.S. Christensen and I.I. Primdahl (Haldor Topsøe), “Improve syngas production using
autothermal reforming,” Hydrocarbon Processing, March 1994, pp. 39-46.

24
24. M. Schwartz, J.H. White, M.G. Myers, S. Deych, and A.F. Sammells (Eltron Research),
“The Use of Ceramic Membrane Reactors for the Partial Oxidation of Methane to
Synthesis Gas,” presented to the ACS National Meeting, San Francisco, California, April
13-17, 1997.

25. C.A. Udovich et al. (Amoco) and U. Balachandran et al. (Argonne National Laboratory),
“Ceramic Membrane Reactor for the Partial Oxygenation of Methane to Synthesis Gas,”
presented to the AIChE Spring National Meeting, Houston, Texas, March 9-13, 1997.

26. Hydrogen: Manufacture and Management, a private multiclient-sponsored report, SFA


Pacific, Inc., December 1991.

27. “Small-Scale Partial Oxidation Reformer Offered for Hydrogen Production,” The Clean
Fuels Report, June 1996, p. 149.

28. B.M. Tindal and M.A. Crews (Howe-Baker), “Alternative Technologies to Steam-Methane
Reforming,” Hydrocarbon Processing, November 1995, pp. 75-82.

29. B.J. Cromarty (ICI Katalco), “How to Get the Most Out of Your Existing Refinery
Hydrogen Plant,” presented to the AIChE Spring National Meeting, Houston, Texas, March
9-13, 1997.

30. G.Q. Miller (UOP) and J. Stoecker (Union Carbide), “Selection of a Hydrogen Separation
Process,” paper AM-89-55 presented at the 1989 NPRA Annual Meeting, San Francisco,
California, March 19-21, 1989.

31. T.R. Tomlinson and A.J. Finn (Costain Engineering), “H2 Recovery Processes Compared,”
Oil & Gas Journal, January 15, 1990, pp. 35-39.

32. E.J. Hoffman et al., “Membrane Separations of Subquality Natural Gas,” Energy Progress,
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33. W.S.W. Ho and K.K. Sirkar (Eds.), Membrane Handbook, Van Nostrand Reinhold, 1992.

34. R.W. Spillman (W.R. Grace), “Economics of Gas Separation Membranes,” Chemical
Engineering Progress, January 1989, pp. 41-62.

35. G. Markiewicz (APCI), “Membrane System Lowers Treating Plant Cost,” Oil & Gas
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January 1997, p. 15.

25
38. M.V. Narasimhan (KTI), M. Whysall (UOP), and B. Pacalowska (Petrochemia Plock),
“Design Considerations for a Hydrogen Recovery Scheme from Refinery Offgases,”
presented at AIChE Spring National Meeting, Houston, Texas, March 9-13, 1997.

Small Steam Methane Reforming


1. D.L. King & C.E. Bochow, Jr. (Howe-Baker Engineers, Inc.), “What should an
owner/operator know when choosing an SMR/PSA plant?” Hydrocarbon Processing, May
2000, pp. 39-48.
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Hydrogen,” Hydrocarbon Engineering, February 2001, pp. 75-82.
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4. Ib Dybhjaer, et al (Haldor Topsøe), “Medium Size Hydrogen Supply Using the Topsøe
Convection Reformer,” Paper AM-97-18, NPRA Annual Meeting, San Antonio, TX,
March 16-18, 1997.
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November 2001, pp. 45-50.
6. Air Products and Chemicals, Inc., 1998, from Internet 1/16/01.
7. Hydro-Chem, a Division of Pro-Quip Corporation (Linde Group), “Hydro-Chem Modular
Hydrogen Plants,” from Internet 12/14/01.
8. David Cepla, Fuel Processor Group, UOP LLC, Des Plaines, IL, (847) 391-3534, January
22, 2002.
9. Hydrogen Burner Technology, Long Beach, CA, (562) 597-2442, January 18, 2002 and
www.hbti.net/.
10. Sandy Thomas, H2Gen Innovations Inc., Alexandria, VA, (703) 212-7444, December 7,
2001 and www.h2gen.com.
11. “ZTEK Prepackaged Steam Reformer,” http://www.ztekcorp.com/ztekreformer.
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December 2000, pp. 42-46.
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Report, Fourth Quarter 2000.
Electrolysis
1. M.N. Tazima, et. al. “Development on Solid Polymer Electrolyte Water Electrolysis
Technonogy for High Density and Energy Efficiency,” Mitsubishi Heavy Industries
2. Packaged Hydrogen Generators, Electrolyser Corp.
3. The IMET Package, www.hydrogensystems.com
4. Personal Contact, Air Products

26
Pipeline
1. “Transportation and Handling of Medium Btu Gas in Pipelines,” EPRI AP-3426, Final
Report, March 1984.
2. “Pipeline Transmission of CO2 and Energy Transmission Study-Report,” IEA Greenhouse
Gas R&D Programme, Woodhill Engineering Consultants.

High Pressure Storage


1. Andrew Haaland, “High Pressure Conformable Hydrogen Storage for Fuel Cell Vehicles,”
Preceeding of the 2000 Hydrogen Program Review.
2. “Fill’er Up-With Hydrogen,” Mechanical Engineering, Features, February 2002,
www.memagazine.org.
3. “Lincoln Composites Delivers High Pressure Hydrogen Tanks,”
www.lincolncomposites.com/
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Vessels for Cryogenic Hydrogen Storage,” Proceeding of the 2000 Hydrogen Program
Review, NREL/CP-570-28890.

High Pressure Compression


1. Robert Chellini, “12,000 Hp Hydrogen Compressors Enhance Reformulated Gasoline
Production in California,” Compressor Tech. May-June 2001.
2. Hydro-Pack Brochure.

Delivery
1. Wade A. Amos, “Cost of Storing and Transporting Hydrogen,” November 1998,
NREL/TP-570-25106.
2. Susan M. Schoenung, “IEA Hydrogen Annex 13 Transportation Applications Analysis,”
Proceedings of 2001 DOE Hydrogen Program Review.

27
Appendix A
Complete Set of Spreadsheets
For Base Case Input
Summary of Natural Gas Based Hydrogen Production
Final Version June 2002 IHIG Confidential

Design hydrogen production 150,000 kg/d H2 and 90% Annual ave. load facor
Supporting 225,844 FC Vehicles at 411 Filling station
Hydrogen per filling station 10,000 kg/mo H2 or 329 kg/d H2

Capital Investment Liquid H2 Pipeline Tube Trailer


Million $/yr Million $/yr Million $/yr
H2 production 230 79 133
H2 delivery 13 603 141
H2 fueling 279 212 212
Total 522 894 486

Annual Operating Costs Liquid H2 Pipeline Tube Trailer


$ million/yr $ million/yr $ million/yr
H2 production 109 49 64
H2 delivery 9 145 103
H2 fueling 63 53 49
Total 180 246 216

Unit H2 Cost in $/kg which is the same as $/gallon gasoline energy equivalent
Liquid H2 Pipeline Tube Trailer Forecourt
$/kg $/kg $/kg $/kg
H2 production 2.21 1.00 1.30
H2 delivery 0.18 2.94 2.09
H2 fueling 1.27 1.07 1.00
Total 3.66 5.00 4.39 4.40

Source: SFA Pacific, Inc.


Summary of Resid Hydrogen Production
Final Version June 2002 IHIG Confidential

Design hydrogen production 150,000 kg/d H2 and 90% Annual ave. load facor
Supporting 225,844 FC Vehicles at 411 Filling station
Hydrogen per filling station 10,000 kg/mo H2 or 329 kg/d H2

Capital Investment Pipeline


Million $/yr
H2 production 185
H2 delivery 603
H2 fueling 212
1,000

Annual Operating Costs Pipeline


$ million/yr
H2 production 62
H2 delivery 145
H2 fueling 53
Total 260

Unit H2 Cost in $/kg which is the same as $/gallon gasoline energy equivalent
Pipeline
$/kg
H2 production 1.27
H2 delivery 2.94
H2 fueling 1.07
Total 5.27

Source: SFA Pacific, Inc.


Summary of Petroleum Coke Based Hydrogen Production
Final Version June 2002 IHIG Confidential

Design hydrogen production 150,000 kg/d H2 and 90% Annual ave. load facor
Supporting 225,844 FC Vehicles at 411 Filling station
Hydrogen per filling station 10,000 kg/mo H2 or 329 kg/d H2

Capital Investment Pipeline


Million $/yr
H2 production 238
H2 delivery 603
H2 fueling 212
1,053

Annual Operating Costs Pipeline


$ million/yr
H2 production 66
H2 delivery 145
H2 fueling 53
Total 264

Unit H2 Cost in $/kg which is the same as $/gallon gasoline energy equivalent
Pipeline
$/kg
H2 production 1.35
H2 delivery 2.94
H2 fueling 1.07
Total 5.35

Source: SFA Pacific, Inc.


Summary of Coal Based Hydrogen Production
Final Version June 2002 IHIG Confidential

Design hydrogen production 150,000 kg/d H2 and 90% Annual ave. load facor
Supporting 225,844 FC Vehicles at 411 Filling station
Hydrogen per filling station 10,000 kg/mo H2 or 329 kg/d H2

Capital Investment Liquid H2 Pipeline Tube Trailer


Million $/yr Million $/yr Million $/yr
H2 production 448 259 339
H2 delivery 13 603 141
H2 fueling 279 212 212
740 1,074 692

Annual Operating Costs Liquid H2 Pipeline Tube Trailer


$ million/yr $ million/yr $ million/yr
H2 production 151 80 103
H2 delivery 9 145 103
H2 fueling 63 53 49
Total 222 277 255

Unit H2 Cost in $/kg which is the same as $/gallon gasoline energy equivalent
Liquid H2 Pipeline Tube Trailer
$/kg $/kg $/kg
H2 production 3.06 1.62 2.09
H2 delivery 0.18 2.94 2.09
H2 fueling 1.27 1.07 1.00
Total 4.51 5.62 5.18

Source: SFA Pacific, Inc.


Summary of Biomass Based Hydrogen Production
Final Version June 2002 IHIG Confidential

Design hydrogen production 150,000 kg/d H2 and 90% Annual ave. load facor
Supporting 225,844 FC Vehicles at 411 Filling station
Hydrogen per filling station 10,000 kg/mo H2 or 329 kg/d H2

Capital Investment Liquid H2 Pipeline Tube Trailer


Million $/yr Million $/yr Million $/yr
H2 production 452 295 362
H2 delivery 13 603 141
H2 fueling 279 212 212
744 1,110 715

Annual Operating Costs Liquid H2 Pipeline Tube Trailer


$ million/yr $ million/yr $ million/yr
H2 production 174 113 132
H2 delivery 9 145 103
H2 fueling 63 53 49
Total 246 310 284

Unit H2 Cost in $/kg which is the same as $/gallon gasoline energy equivalent
Liquid H2 Pipeline Tube Trailer
$/kg $/kg $/kg
H2 production 3.53 2.29 2.69
H2 delivery 0.18 2.94 2.09
H2 fueling 1.27 1.07 1.00
Total 4.98 6.29 5.77

Source: SFA Pacific, Inc.


Summary of Electrolysis Based Hydrogen Production
Final Version June 2002 IHIG Confidential

Design hydrogen production 150,000 kg/d H2 and 90% Annual ave. load facor
Supporting 225,844 FC Vehicles at 411 Filling station
Hydrogen per filling station 10,000 kg/mo H2 or 329 kg/d H2

Capital Investment Liquid H2 Pipeline Tube Trailer


Million $/yr Million $/yr Million $/yr
H2 production 688 566 602
H2 delivery 13 603 141
H2 fueling 279 212 212
980 1,382 955

Annual Operating Costs Liquid H2 Pipeline Tube Trailer


$ million/yr $ million/yr $ million/yr
H2 production 304 253 261
H2 delivery 9 145 103
H2 fueling 63 53 49
Total 376 450 413

Unit H2 Cost in $/kg which is the same as $/gallon gasoline energy equivalent
Liquid H2 Pipeline Tube Trailer Forecourt
$/kg $/kg $/kg $/kg
H2 production 6.17 5.13 5.30
H2 delivery 0.18 2.94 2.09
H2 fueling 1.27 1.07 1.00
Total 7.62 9.13 8.39 12.12

Source: SFA Pacific, Inc.


Forecourt Summary of Inputs and Outputs
Final Version June 2002 IHIG Confidential

Inputs Boxed in yellow are the key input variables you must choose, current inputs are just an example
design basis
Key Variables Inputs Notes
Hydrogen Production Inputs 1 kg H2 is the same energy content as 1 gallon of gasoline
Design hydrogen production 470 kg/d H2 194,815 scf/d H2 100 to 10,000 kg/d range for forecourt
Annual average load factor 70% /yr of design 10,007 kg/month actual or 120,085 kg/yr actual
High pressure H2 storage 3 hr at peak surge rate "plug & play" 24 hr process unit replacements for availability
FC Vehicle gasoline equiv mileage 55 mpg (U.S. gallons) or 23 km/liter 329 kg/d average
FC Vehicle miles per year 12,000 mile/yr thereby requires 218 kg/yr H2 for each FC vehicle
Capital Cost Buildup Inputs from process unit costs All major utilities included as process units
General Facilities 20% of process units 20-40% typical, should be low for small forecourt
Engineering, Permitting & Startup 10% of process units 10-20% typical, assume low eng. of multiple standard designs
Contingencies 10% of process units 10-20% typical, should be low after the first few
Working Capital, Land & Misc. 9% of process units 5-10% typical, high land costs for forecourt
Site specific factor 110% above US Gulf Coast 90-130% typical; sales tax, labor rates & weather issues
Product Cost Buildup Inputs
Road tax or (subsidy) $ - /gal gasoline equivalent may need subsidy like EtOH to get it going
Gas Station mark-up $ - /gal gasoline equivalent may be needed if H2 sales drops total station revenues
Non-fuel Variable O&M 1.0% /yr of capital 0.5-1.5% is typical
Fuels Methanol $ 7.15 /MM Btu HHV $7-9/MM Btu typical chemical grade delivered rate
Natural Gas $ 5.50 /MM Btu HHV $4-7/MM Btu typical commercial rate, see www.eia.doe.gov
Gasoline $ 6.60 /MM Btu HHV $5-7/MM Btu typical tax free rate go to www.eia.doe.gov
Electricity $ 0.070 /kWh $0.06-.0.09/kWh typical commercial rate, see www.eia.doe.gov
Fixed Operating Cost 5.0% /yr of capital 4-7% typical for refiners: labor, overhead, insurance, taxes, G&A
Capital Charges 18.0% /yr of capital 20-25%/yr CC typical for refiners & 14-20%/yr CC for utilities
20%/yr CC is about 12% IRR DCF on 100% equity where as
15%/yr CC is about 12% IRR DCF on 50% equity & debt at 7%

Outputs 329 kg/d H2 that supports 550 FC vehicles or 10,007 kg/month for this station
actual annual average 79 fill-ups/d if 1 fill-up/week @ 4.2 kg/fill-up
Capital Costs Operating Cost Product Costs
Absolute Unit cost Unit cost Fixed Variable Including capital charges
Case No. Description $ millions design rate design rate Unit cost Unit cost Unit cost Note
$/scf/d H2 $ kg/d H2 $/kg H2 $/kg H2 $/kg H2 same as $/gal gaso equiv
F1 Methanol Reforming 1.57 8.08 3,350 0.66 1.51 4.53 into vehicles at 340 atm

F2 Natural Gas Reforming 1.63 8.35 3,460 0.68 1.28 4.40 into vehicles at 340 atm

F3 Gasoline Reforming 1.78 9.14 3,789 0.74 1.59 5.00 into vehicles at 340 atm

F4 Water Electrolysis 4.15 21.28 8,821 1.73 4.18 12.12 into vehicles at 340 atm
Click on specific Excel worksheet tabs below for details of cost buildups for each case

Source: SFA Pacific, Inc.


Path F1
Forecourt Hydrogen via Steam Reformer of Methanol plus High Pressure Gas Storage
Final Version June 2002 IHIG Confidential
Color codes variables via summary inputs key outputs

gasoline equivalent
Design per station Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv
Size range kg/d H2 gal/d Btu/hr scf/d H2 MW t Assuming 70% Annual average load factor
Maximum 10,000 10,000 47.422 4,145,000 13.894 actual H2 120,085 kg/y H2 /station or gal/y gaso equiv
This run 470 470 2.229 194,815 0.653 or 10,007 kg/month H2 or gal/mo. gaso equiv
Minimum 100 100 0.474 41,450 0.139 thereby 550 FC vehicles can be supported at
79 fill-ups/d @ 4.2 kg or gal equiv/fill-up
H2 HP H2 or each vehicle fills up one a week
Electric Power Compress 19.6 kg/hr H2 storage
Compress 38 2.0 400 atm 3 123 kg H2 max storage or
SMR & misc. 4 kW/kg/h hr at peak 1,052 gal phy vol at 400 atm
Total 42 kW 20
/1 compression ratio surge
3
stages maximum surge fill/up rate per hr at
8,117scf/hr H2 at 3 times average kg/hr H2 production rate
20
atm
MeOH ref 4.0 HP H2
Methanol 75.0% kg/ fill-up dispenser High Pressure (340 atm) Hydrogen
2.972 MM Btu/h LHV LHV effic 5 48 Gas into Vehicles
3.363 MM Btu/h HHV min/fill-up kg/hr/dis 470 design kg/d H2 or gal/d
52 gal/hr @ 64,771 Btu/gal 366 Btu LHV/scf H2 2 dispenser gasoline equivalent
5 day MeOH storage = 6,230 gallons max. design storage 329 actual kg/d annual ave.
215 kg/hr CO2, however in dilute N2 rich SMR flue gas
at 0.75 kg CO2/kWh current U.S. average = 32 kg/hr CO2 equivalent at power plants
12.6 kgCO2/kg H2
Unit cost basis at cost/size Unit cost at millions of $
Capital Costs 1,000 kg/d H2 factors 470 kg/d H2 for 1 station Notes
Methanol storage 5 /gal 70% $ 6 /gal 0.04 same as gasoline tank cost
Methanol reformer $ 2.70 /scf/d 75% $ 3.26 /scf/d 0.64 assume 90% of SMR
H2 Compressor $ 3,000 /kW 80% $ 3,489 /kW 0.13 $ 285 /kg/d H2
HP H2 gas storage $ 100 /gal phy vol 80% $ 116 /gal phy vol 0.12 $ 991 /kg high press H2 gas
HP H2 gas dispenser $ 15,000 /dispenser 100% $ 15,000 /dispenser 0.03 $ 13 /kg/d dispenser design
Total process units 0.96
General Facilities 20% of process units 0.19 20-40% typical, should be low for this
Engineering Permitting & Startup 10% of process units 0.10 10-20% typical, low eng after first few
Contingencies 10% of process units 0.10 10-20% typical, low after the first few
Working Capital, Land & Misc. 9% of process units 0.09 5-10% typical, high land costs for this
U.S. Gulf Coast Capital Costs 1.43
Site specific factor 110% above US Gulf Coast Total Capital Costs 1.57
Unit Capital Costs of 8.08 /scf/d H2 or 3,350 /kg/d H2 or 3,350 /gal/d gaso equiv

million $/yr $/million $/1,000 $/kg H2 or


Hydrogen Costs at 70% ann load factor of 1 station Btu LHV scf H2 $/gal gaso equiv Notes
Road tax or (subsidy) $ - /gal gaso equiv. - - - - can be subsidy like EtOH
Gas Station mark-up $ - /gal gaso equiv. - - - - if H2 drops total station revenues
Non-fuel Variable O&M 1.0% /yr of capital 0.016 1.15 0.32 0.13 0.5-1.5% is typical
Methanol $ 7.15 /MM Btu HHV 0.147 10.79 2.96 1.23 see below - chemical grade
Electricity $ 0.070 /kWh 0.018 1.33 0.37 0.15 $0.06-.09/kWh EIA commercial rate
Variable Operating Cost 0.181 13.27 3.64 1.51
Fixed Operating Cost 5.0% /yr of capital 0.079 5.76 1.58 0.66 4-7% typical for refining
Capital Charges 18.0% /yr of capital 0.283 20.74 5.69 2.36 20-25% typical for refining
Total HP Hydrogen Cost from Methanol 0.544 39.77 10.92 4.53 including return on investment
in vehicle

$ 0.061 /kWh electricity for only H2 fuel (no capital charges or other O&M) to high capital cost fuel cell @ 60% LHV effic
$ 0.068 /kWh electricity for only MeOH fuel (no capital charges or other O&M) to Solar 4 MWe Mercury 50 GT @ 40% LHV effic
$ 0.067 /kWh electricity for only MeOH fuel (no capital charges or other O&M) to Solar 9 MWe STAC70 CC @ 41% LHV effic
H2-fuel cell power sales during H2 vehicle ramp-up is questionable relative to lower capital & non-fuel O&M
of small NG or MeOH fired GT/CC or the much lower NG costs and higher efficiency, 60% of large industrial NGCC

note: requires $ 0.462 /gal MeOH delivered price back calculated for above $/MM Btu price
assuming $ 0.100 /gal delivery cost at 2 times assumed special reformer gasoline delivery costs
$ 0.362 /gal Feb. 2002 Methanex U.S. reference price was $ 0.360 /gal
Fuel grade MeOH & large scale GTL with low cost NG, like the new Trinidad 5,000 t/d MeOH unit should be cheaper

Source SFA Pacific, Inc


Path F2
Forecourt Hydrogen via Steam Reformer of Natural Gas plus High Pressure Gas Storage
Final Version June 2002 IHIG Confidential
Color codes variables via summary inputs key outputs

gasoline equivalent
Design for 1 station Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv.
Size range kg/d H2 gal/d Btu/hr scf/d H2 MW t Assuming 70% Annual average load factor
Maximum 10,000 10,000 47.422 4,145,000 13.894 actual H2 120,085 kg/y H2 /station or gal/y gaso equiv.
This run 470 470 2.229 194,815 0.653 or 10,007 kg/month H2 or gal/mo. gaso equiv.
Minimum 100 100 0.474 41,450 0.139 thereby 550 FC vehicles can be supported at
79 fill-ups/d @ 4.2 kg or gal equiv./fill-up
H2 HP H2 or each vehicle fills up one a week
Electric Power Compress 19.6 kg/hr H2 storage
Compress 38 2.0 400 atm 3 123 kg H2 max storage or
SMR & misc. 5 kW/kg/h hr at peak 1,052 gal phy vol at 400 atm
Total 43 kW 20/1 compression ratio surge
3stages maximum surge fill/up rate per hr at
8,117 scf/hr H2 at 3 times average kg/hr H2 production rate
20atm
SMR 4.0 HP H2
Natural Gas 70.0% kg/ fill-up dispenser High Pressure (340 atm) Hydrogen
3.184 MM Btu/h LHV LHV effic 5 48 Gas into Vehicles
3.534 MM Btu/h HHV min/fill-up kg/hr/dis 470 design kg/d H2 or gal/d
3,534 scf/hr @ 1,000 Btu/scf 392 Btu LHV/scf H2 2 dispenser gasoline equivalent
70 kg/hr @23,000 Btu/lb 329 actual kg/d annual ave.
192 kg/hr CO2, however in dilute N2 rich SMR flue gas
at 0.75 kg CO2/kWh current U.S. average = 32 kg/hr CO2 equivalent at power plants
11.4 kgCO2/kg H2
Unit cost basis at cost/size Unit cost at millions of $
Capital Costs 1,000 kg/d H2 factors 470 kg/d H2 for 1 station Notes
NG Reformer (SMR) $ 3.00 /scf/d 75% $ 3.62 /scf/d 0.71 $ 1,502 /kg/d H2
H2 Compressor $ 3,000 /kW 80% $ 3,489 /kW 0.13 $ 285 /kg/d H2
HP H2 gas storage $ 100 /gal phy vol 80% $ 116 /gal phy vol 0.12 $ 991 /kg high press H2 gas
HP H2 gas dispenser $ 15,000 /dispenser 100% $ 15,000 /dispenser 0.03 $ 13 /kg/d dispenser design
Total process units 0.99
General Facilities 20% of process units 0.20 20-40% typical, should be low for this
Engineering Permitting & Startup 10% of process units 0.10 10-20% typical, low eng after first few
Contingencies 10% of process units 0.10 10-20% typical, low after the first few
Working Capital, Land & Misc. 9% of process units 0.09 5-10% typical, high land costs for this
U.S. Gulf Coast Capital Costs 1.48
Site specific factor 110% above US Gulf Coast Total Capital Costs 1.63
Unit Capital Costs 8.35 /scf/d H2 or 3,460 /kg/d H2 or 3,460 /gal/d gaso equiv.

million $/yr $/million $/1,000 $/kg H2 or


Hydrogen Costs at 70% ann load factor of 1 station Btu LHV scf H2 $/gal gaso equiv. Notes
Road tax or (subsidy) $ - /gal gaso equiv. - - - - can be subsidy like EtOH
Gas Station mark-up $ - /gal gaso equiv. - - - - if H2 drops total station revenues
Variable Non-fuel O&M 1% /yr of capital 0.016 1.19 0.33 0.14 0.5-1.5% is typical
Natural Gas $ 5.50 /MM Btu HHV 0.119 8.72 2.39 0.99 $4-7/MM Btu EIA commercial rate
Electricity $ 0.070 /kWh 0.019 1.36 0.37 0.15 $0.06-.09/kWh EIA commercial rate
Variable Operating Cost 0.154 11.27 3.09 1.28
Fixed Operating Cost 5% /yr of capital 0.081 5.95 1.63 0.68 4-7% typical for refining
Capital Charges 18% /yr of capital 0.293 21.42 5.88 2.44 20-25% typical of refining
Total HP Hydrogen Costs from Natural Gas 0.528 38.64 10.61 4.40 including return on investment
in vehicle

$ 0.050 /kWh electricity for only H2 fuel (no capital charges or other O&M) to high capital cost fuel cell @ 60% LHV effic
$ 0.052 /kWh electricity for only NG fuel (no capital charges or other O&M) to Solar 4 MWe Mercury 50 GT @ 40% LHV effic
$ 0.051 /kWh electricity for only NG fuel (no capital charges or other O&M) to Solar 9 MWe STAC70 CC @ 41% LHV effic
H2-fuel cell power sales during H2 vehicle ramp-up is questionable relative to lower capital & non-fuel O&M
of small NG fired GT/CC or the much lower NG costs and higher efficiency, 60% of large industrial NGCC

note: Assume gas station has existing natural gas pipeline infrastructure, if not more capital or higher NG price

Source SFA Pacific, Inc


Path F3
Forecourt Hydrogen via Steam Reformer of Gasoline plus High Pressure Gas Storage
Final Version June 2002 IHIG Confidential
Color codes variables via summary inputs key outputs

gasoline equivalent
Design per station Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv
Size range kg/d H2 gal/d Btu/hr scf/d H2 MW t Assuming 70% Annual average load factor
Maximum 10,000 10,000 47.422 4,145,000 13.894 actual H2 120,085 kg/y H2 /station or gal/y gaso equiv
This run 470 470 2.229 194,815 0.653 or 10,007 kg/month H2 or gal/mo. gaso equiv
Minimum 100 100 0.474 41,450 0.139 thereby 550 FC vehicles can be supported at
79 fill-ups/d @ 4.2 kg or gal equiv/fill-up
H2 HP H2 or each vehicle fills up one a week
Electric Power Compress 19.6 kg/hr H2 storage
Compress 38 2.0 400 atm 3 123 kg H2 max storage or
SMR & misc. 6 kW/kg/h hr at peak 1,052 gal phy vol at 400 atm
Total 44 kW 20 /1 compression ratio surge
3 stages maximum surge fill/up rate per hr at
8,117 scf/hr H2 at 3 times average kg/hr H2 production rate
Special ultra-low 20 atm
sulfur & aromatics Gaso ref 4.0 HP H2
Gasoline 65.0% kg/ fill-up dispenser High Pressure (340 atm) Hydrogen
3.429 MM Btu/h LHV LHV effic 5 48 Gas into Vehicles
3.806 MM Btu/h HHV min/fill-up kg/hr/dis 470 design kg/d H2 or gal/d
32 gal/hr @ 120,000 Btu/gal 422 Btu LHV/scf H2 2 sides 2 dispenser gasoline equivalent
5 day Gaso storage = 3,806 gallons max. design storage 329 actual kg/d annual ave.
304 kg/hr CO2, however in dilute N2 rich SMR flue gas
at 0.75 kg CO2/kWh current U.S. average = 33 kg/hr CO2 equivalent at power plants
17.2 kgCO2/kg H2
Unit cost basis at cost/size Unit cost at millions of $
Capital Costs 1,000 kg/d H2 factors 470 kg/d H2 for 1 station Notes
Special gasoline storage 5 /gal 70% $ 6.27 gal storage 0.02 could use with existing tanks
Gasoline reformer $ 3.30 /scf/d 75% $ 3.99 per scf/d 0.78 assume 110% of SMR
H2 Compressor $ 3,000 /kW 80% $ 3,489 per kW 0.13 $ 285 /kg/d H2
HP H2 gas storage $ 100 /gal phy vol 80% $ 116 /gal phy vol 0.12 $ 991 $/kg high press H2 gas
HP H2 gas dispenser $ 15,000 /dispenser 100% $ 15,000 per dispenser 0.03 $ 13 /kg/d dispenser design
Total process units 1.09
General Facilities 20% of process units 0.22 20-40% typical, should be low for this
Engineering Permitting & Startup 10% of process units 0.11 10-20% typical, low eng after first few
Contingencies 10% of process units 0.11 10-20% typical, low after the first few
Working Capital, Land & Misc. 9% of process units 0.10 5-10% typical, high land costs for this
U.S. Gulf Coast Capital Costs 1.62
Site specific factor 110% above US Gulf Coast Total Capital Costs 1.78
Unit Capital Costs of 9.14 /scf/d H2 or 3,789 /kg/d H2 or 3,789 /gal/d gaso equiv

million $/yr $/million $/1,000 $/kg H2 or


Hydrogen Costs at 70% ann load factor of 1 station Btu LHV scf H2 $/gal gaso equiv Notes
Road tax or (subsidy) $ - /gal gaso equiv. - - - - can be subsidy like EtOH
Gas Station mark-up $ - /gal gaso equiv. - - - - if H2 drops total station revenues
Non-fuel Variable O&M 1% /yr of capital 0.018 1.30 0.36 0.15 0.5-1.5% is typical
Special gasoline $ 6.60 /MM Btu HHV 0.154 11.27 3.09 1.28 see below
Electricity $ 0.070 /kWh 0.019 1.38 0.38 0.16 $0.06-.09/kWh EIA commercial rate
Variable Operating Cost 0.191 13.96 3.83 1.59
Fixed Operating Cost 5% /yr of capital 0.089 6.52 1.79 0.74 4-7% typical for refining
Capital Charges 18% /yr of capital 0.321 23.46 6.44 2.67 20-25% typical of refining
Total HP Hydrogen Costs from Gasoline 0.600 43.93 12.06 5.00 including return on investment
in vehicle

$ 0.064 /kWh electricity for only H2 fuel (no capital charges or other O&M) to high capital cost fuel cell @ 60% LHV effic
$ 0.059 /kWh electricity for only gaso fuel (no capital charges or other O&M) to Solar 4 MWe Mercury 50 GT @ 40% LHV effic
$ 0.058 /kWh electricity for only gaso fuel (no capital charges or other O&M) to Solar 9 MWe STAC70 CC @ 41% LHV effic
H2-fuel cell power sales during H2 vehicle ramp-up is questionable relative to lower capital & non-fuel O&M
of small NG or gasoline fired GT/CC or the much lower NG costs and higher efficiency, 60% of large industrial NGCC

note: assume special ultra-low sulfur & aromatics gasoline is 100% of current regular reformulated gasoline price
requires $ 0.792 /gal gasoline delivered price back calculated for above $/MM Btu price input
assuming $ 0.050 /gal delivery cost (assume use of existing delivery system)
$ 0.742 /gal refinery price or 100% of $ 0.742 /gal O&G Journal price in Feb 2002

Source SFA Pacific, Inc


Path F4
Forecourt Hydrogen via Electrolysis of Water plus High Pressure Gas Storage
Final Version June 2002 IHIG Confidential
Color codes variables via summary inputs key outputs

gasoline equivalent
Design per station Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv
Size range kg/d H2 gal/d Btu/hr scf/d H2 MW t Assuming 70% Annual average load factor
Maximum 1,000 1,000 4.742 414,500 1.389 actual H2 120,085 kg/y H2 /station or gal/y gaso equiv
This run 470 470 2.229 194,815 0.653 or 10,007 kg/month H2 or gal/mo. gaso equiv
Minimum 10 10 0.047 4,145 0.014 thereby 550 FC vehicles can be supported at
79 fill-ups/d @ 4.2 kg or gal equiv/fill-up
Electric Power H2 HP H2 or each vehicle fills up one a week
Compress 46 Compress 19.6 kg/hr H2 gas storage
Misc. 6 2.3 400 atm 3 123 kg H2 max storage or
Electrolysis 1,028 kW/kg/h hr at peak 1,052 gal phy vol at 400 atm
Total 1,074 kW 40 /1 compression ratio surge
3 stages maximum surge fill/up rate per hr at
8,117 scf/hr H2 at 3 times average kg/hr H2 production rate
10 atm
Electrolysis 4.0 HP H2
156.7 kg/hr O2 75.0% 63.5% kg/ fill-up dispenser High Pressure (340 atm) Hydrogen
Water electric LHV H2 5 48 Gas into Vehicles
176.3 kg/hr efficiency effeciency min/fill-up kg/hr/dis 470 design kg/d H2 or gal/d
2 dispenser gasoline equivalent
theoretical power 39.37 kWh/kg H2 at 100% electric efficiency 329 actual kg/d annual ave.
actual power 52.49 kWh/kg or 4.73 kWh/Nm3 H2
at 0.75 kg CO2/kWh current U.S. average = 805 kg/hr CO2 equivalent at power plants
41.1 kgCO2/kg H2
Unit cost basis at cost/size Unit cost at millions of $
Capital Costs 1,000 kg/d H2 factors 470 kg/d H2 for 1 station Notes
Electrolyser $ 2,000 /kW 90% $ 2,157 /kW 2.22 $ 11.4 /scf/d H2
H2 Compressor $ 3,000 /kW 80% $ 3,489 /kW 0.16 $ 340 $/kg/d H2
HP H2 gas storage $ 100 /gal phy vol 80% $ 116 /gal phy vol 0.12 $ 991 $/kg high press H2 gas
HP H2 gas dispenser $ 15,000 /dispenser 100% $ 15,000 /dispenser 0.03 $ 13 /kg/d dispenser design
Total process units 2.53
General Facilities 20% of process units 0.51 20-40% typical, should be low for this
Engineering Permitting & Startup 10% of process units 0.25 10-20% typical, low eng after first few
Contingencies 10% of process units 0.25 10-20% typical, low after the first few
Working Capital, Land & Misc. 9% of process units 0.23 5-10% typical, high land costs for this
U.S. Gulf Coast Capital Costs 3.77
Site specific factor 110% above US Gulf Coast Total Capital Costs 4.15
Unit Capital Costs of 21.28 /scf/d H2 or 8,821 /kg/d H2 or 8,821 /gal/d gaso equiv

million $/yr $/million $/1,000 $/kg H2 or


Hydrogen Costs at 70% ann load factor of 1 station Btu LHV scf H2 $/gal gaso equiv Notes
Road tax or (subsidy) $ - /gal gaso equiv. - - - - can be subsidy like EtOH
Gas Station mark-up $ - /gal gaso equiv. - - - - if H2 drops total station revenues
Non-fuel Variable O&M 1.0% /yr of capital 0.041 3.03 0.83 0.35 0.5-1.5% is typical
Electricity $ 0.070 /kWh 0.461 33.72 9.26 3.84 $0.06-.09/kWh EIA commercial rate
Variable Operating Cost 0.502 36.76 10.09 4.18 mostly electricity costs
Fixed Operating Cost 5.0% /yr of capital 0.207 15.17 4.16 1.73 4-7% typical for refining
Capital Charges 18.0% /yr of capital 0.746 54.60 14.99 6.21 20-25% typical of refining
Total HP Hydrogen Costs from Electrolysis 1.456 106.52 29.25 12.12 including return on investment
in vehicle

Note: if 12 hr/d at $ 0.040 /kWh lower off-peak rate and Daliy average rate could be
12 hr/d at $ 0.090 /kWh higher peak rate $ 0.065 /kWh
If only operated during low off-peak rate times would have low ann load factor & need more expensive H2 storage
Assume Hydrogn Systems Electrolysis at 150 psig pressure, Norsk Hydro & Stuard systems are low pressure
Assumed oxygen recovery for by-product sales with large central plant case, but only minor economic impact

Source SFA Pacific, Inc


Central Hydrogen Plant Summary of Inputs and Outputs
Final Version June 2002 IHIG Confidential

Inputs Boxed in yellow are the key input variables you must choose, current inputs are just an example
design basis
Key Variables Inputs Notes
Hydrogen Production Inputs 1 kg H2 is the same energy content as 1 gallon of gasoline
Design hydrogen production 150,000 kg/d H2 62,175,000 scf/d H2 size range of 20,000 to 900,000 kg/d
Annual average load factor 90% /yr of design 4,106,250 kg/month actual or 49,275,000 kg/yr actual
Distribution distance to forecourt 43 miles average distance 25-200 miles is typical
FC Vehicle gasoline equiv mileage 55 mpg (U.S. gallons) or 23 km/liter
FC Vehicle miles per year 12,000 mile/yr thereby requires 218 kg/yr H2 for each FC vehicle
Typical gasoline sales/month/station 150,000 gallons/month per station 100,000 - 250,000 gallons/month is typical or 4,932 gal/d
Hydrogen as % of gasoline/station 6.7% of gasoline/station or 10,000 kg H2/month per stations or 329 kg/d/station
Capital Cost Buildup Inputs from process unit costs All major utilities included as process units
General Facilities 20% of process units 20-40% typical for SMR + 10% more for gasification
Engineering, Permitting & Startup 15% of process units 10-20% typical
Contingencies 10% of process units 10-20% typical, should be low after the first few
Working Capital, Land & Misc. 7% of process units 5-10% typical
Site specific factor 110% above US Gulf Coast 90-130% typical; sales tax, labor rates & weather issues
Product Cost Buildup Inputs
Non-fuel Variable O&M 1.0% /yr of capital 0.5-1.5% is typical
Fuels Natural Gas $ 3.50 /MM Btu HHV $2.50-4.50/MM Btu typical industrial rate, see www.eia.doe.gov
Electricity $ 0.045 /kWh $0.04-0.05/kWh typical industrial rate, see www.eia.doe.gov
Biomass production costs $ 500 /ha/yr gross revenues $400-600/hr/yr typical in U.S. .lower in developing nations or wastes
Biomass yield 10 tonne/ha/yr bone dry 8-12 ton/hr/yr typical if farmed, 3-5 ton/hr/yr if forestation or wastes
Coal $ 1.10 /million Btu dry HHV $0.75-1.25/million Btu coal utility delivered go to www.eia.doe.gov
Petroleum Coke $ 0.20 /million Btu dry HHV $0.00-0.50/million Btu refinery gate
Residue (Pitch) $ 1.50 /million Btu dry HHV $1.00-2.00/million Btu refinery gate (solid at room temperature)
Fixed O&M Costs 5.0% /yr of capital 4-7% typical for refiners: labor, overhead, insurance, taxes, G&A
Capital Charges 18.0% /yr of capital 20-25%/yr CC typical for refiners & 14-20%/yr CC typical for utilities
20%/yr CC is about 12% IRR DCF on 100% equity where as
15%/yr CC is about 12% IRR DCF on 50% equity & debt at 7%

Outputs 135,000 kg/d H2 that supports 225,844 FC vehicles 10,000 kg H2/month/station supports 411 stations
actual annual average 32,263 fill-ups/d if 1 fill-up/week @ 4.2 kg/fill-up 79 fill-ups/d per station or 329 kg/d/station
Capital Costs Operating Cost Product Costs
Absolute Unit cost Unit cost Fixed Variable Including capital charges
Case No. Description $ millions design rate design rate Unit cost Unit cost Unit cost Note
$/scf/d H2 $/kg/d H2 $/kg H2 $/kg H2 $/kg H2 same as $/gal gaso equiv
C1 Biomass-H2 Pipeline 295 4.74 1,966 0.30 0.92 2.29 216 sq mi land
C2 Biomass-Liquid H2 452 7.28 3,017 0.46 1.42 3.53 216 sq mi land
C3 Natural gas-H2 Pipeline 79 1.27 527 0.08 0.63 1.00 into pipeline @ 75 atm
C4 Natural gas-Liquid H2 230 3.70 1,534 0.23 1.13 2.21 into liquid H2 tanker truck
C5 Electrolysis-H2 Pipeline 566 9.11 3,776 0.57 2.49 5.13 into pipeline @ 75 atm
C6 Electrolysis-Liquid H2 688 11.07 4,586 0.70 2.96 6.17 into liquid H2 tanker truck
C7 Pet Coke-H2 Pipeline 238 3.82 1,585 0.24 0.24 1.35 into pipeline @ 75 atm
C8 Coal-H2 pipeline 259 4.16 1,723 0.26 0.42 1.62 into pipeline @ 75 atm
C9 Coal-Liquid H2 448 7.21 2,989 0.46 0.97 3.06 into liquid H2 tanker truck
C10 Biomass-HP Tube H2 362 5.82 2,411 0.37 1.00 2.69 216 sq mi land
C11 Natural Gas-HP Tube H2 133 2.13 884 0.13 0.69 1.30 into tube trailer @ 400 atm
C12 Electrolysis-HP Tube H2 602 9.67 4,010 0.61 2.49 5.30 into tube trailer @ 400 atm
C13 Residue-H2 Pipeline 185 2.97 1,231 0.19 0.41 1.27 into pipeline @ 75 atm
C15 Coal-HP Tube H2 339 5.46 2,263 0.34 0.51 2.09 into tube trailer @ 400 atm
Click on specific Excel worksheet tabs below for details of cost buildups for each case

Source: SFA Pacific, Inc.


Path C1
Central Hydrogen via Biomass Gasification, Shipped by Pipeline
Final Version June 2002 IHIG Confidential
Color codes variables via summary inputs key outputs

gasoline equivalent
1 Central Plant Design Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv
Size range kg/d H2 gal/d Btu/hr scf/d H2 MW t Assuming 90% annual load factor at
Maximum 200,000 200,000 948 82,900,000 278 actual H2 49,275,000 kg/y H2 /station or gal/y gaso equiv
This run 150,000 150,000 711 62,175,000 208 or 4,106,250 kg/month H2 or gal/mo. gaso equiv
Minimum 20,000 20,000 95 8,290,000 28 thereby 225,844 vehicles can be serviced at
32,263 fill-ups/d @ 4.2 kg or gal equiv/fill-up
Shell gasifier to avoid high CH4 & secondary SMR or ATR or each vehicle fills up one a week
Biomass biomass CO shift
1,169 MM Btu/h LHV gasifier 795 MM Btu/hr cool & clean 24.2 kg CO2/kg H2
1,239 MM Btu/h HHV 80.0% hot raw syngas 5% 109,501 kg/hr CO2 plus 15 % from dryer
70,268 kg/hr @8,000 Btu/lb dry LHV effic 50% CO/(H2+CO) syngas
PSA loses 40 MM Btu/hr PSA fuel gas for superheating
1,686 tons/d biomass bone dry before drying 35 atm 60 MM Bur/h CO to H2 shifting LHV loses
553,995 tons/yr biomass bone dry 56,215 kg/hr O2 6,250 kg/hr H2
55,400 hectares of land for biomass 711 MM Btu/hr H2 61% overall effic raw bio to H2
216 square miles of land to grow biomass 2,590,625 scf/hr H2 @ 30 atm LHV efficiency
H2
Electric Power ASU compress Hydrogen in Gas Pipeline @ 75 atm
ASU 20,799 0.370 0.5
H2 compres 3,125 kWh/kg O2 kWh/kg H2 150,000 design kg/d H2 or gal/d
Misc. 6,253 1,349 metric tons/d O2 2.5 compression ratio gasoline equivalent
Total 30,177 kW 0.80 tons O2/ton dry feed 135,000 actual kg/d annual ave.
15% of biomass fired in FBC to dry gasifier biomass feed 1,902 Btu/lb water vaporized
1,433 tons/day bone dry biomass to gasifier 1,500 Btu/lb water vaporized minimum
at 0.75 kg CO2/kWh current U.S. average for all electricity = 22,633 kg/hr CO2 equivalent at power plants

Unit cost basis at cost/size Unit cost at millions of $


Capital Costs 100,000 kg/d H2 factors 150,000 kg/d H2 for 1 plant Notes
Biomass handling & drying $ 25 /kg/d dry bio $75% 23 /kg/d dry bio 38.1 11 /kg/d green (wet) biomass
Shell gasifier $ 20 /kg/d dry bio $80% 18 /kg/d dry bio 52.9 100% spare unit
Air separation unit (ASU) $ 27 /kg/d oxygen $75% 24 /kg/d oxygen 32.9 $ 1,583 /kW power
CO shift, cool & cleanup $ 15 /kg/d CO2 $75% 14 /kg/d CO2 35.6 $ 0.6 /scf/d H2 MDEA & PSA
H2 Compressor $ 2,000 /kW $90% 1,921 /kW 6.0 $ 40 /kg/d H2
Total process units 165.5
General Facilities 30% of process units 49.7 20-40% typical, SMR + 10%
Engineering Permitting & Startup 15% of process units 24.8 10-20% typical
Contingencies 10% of process units 16.6 10-20% typical, low after the first few
Working Capital, Land & Misc. 7% of process units 11.6 5-10% typical
U.S. Gulf Coast Capital Costs 268.1
Site specific factor 110% of US Gulf Coast costs Total Capital Costs 294.9
Unit Capital Costs 4.74 /scf/d H2 or 1,966 /kg/d H2 or 1,966 /gal/d gaso equiv

million $/yr $/million $/1,000 $/kg H2 or


Hydrogen Costs at 90% ann load factor of 1 plant Btu LHV scf H2 $/gal gaso equiv Notes
Variable Non-fuel O&M 1.0% /yr of capital 2.9 0.53 0.14 0.06 0.5-1.5% typical
Delivered biomass $ 3.22 /MM Btu HHV 31.5 5.61 1.54 0.64 based on costs below
Electricity $ 0.045 /kWh 10.7 1.91 0.52 0.22 0.04-0.05/kWh typical industrial rates
Variable Operating Cost 45.1 8.05 2.21 0.92
Fixed Operating Cost 5.0% /yr of capital 14.7 2.63 0.72 0.30 4-6% typical for refining
Capital Charges 18% /yr of capital 53.1 9.47 2.60 1.08 20% typical of refining
Total Gaseous Hydrogen Costs from Biomass 113.0 20.14 5.53 2.29 including return on investment
into pipeline still requires distribution

Delivered biomass @ $ 56.82 /bone dry ton (BDT) or $ 3.22 /million Btu LHV based on below:
$ 500 /hectare per yr gross total revenues or $ 200 /acre per yr gross total revenues If waste bio or coproduct
10 ton biomass/yr per ha - bone dry basic or 4.0 tons biomass/yr per acre - bone dry lower gross revenue needs
8,000 Btu/lb HHV bone dry and 50% moisture of green biomass but much lower yield/ha
$ 2.08 /mile round trip for typical 25 ton truck hauling green biomass
41 miles round trip haul = $ 3.41 /ton green or $ 6.82 /ton bone dry equivalent transportation

Source SFA Pacific, Inc


Path C2
Central Hydrogen via Biomass Gasification, Shipped by Cryogenic Tanker Truck
Final Version June 2002 IHIG Confidential
Color codes variables via summary inputs key outputs

gasoline equivalent
1 Central Plant Design Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv
Size range kg/d H2 gal/d Btu/hr scf/d H2 MW t Assuming 90% annual load factor at
Maximum 200,000 200,000 948 82,900,000 278 actual H2 49,275,000 kg/y H2 /station or gal/y gaso equiv
This run 150,000 150,000 711 62,175,000 208 or 4,106,250 kg/month H2 or gal/mo. gaso equiv
Minimum 20,000 20,000 95 8,290,000 28 thereby 225,844 vehicles can be serviced at
32,263 fill-ups/d @ 4.2 kg or gal equiv/fill-up
Shell gasifier to avoid high CH4 & secondary SMR or ATR or each vehicle fills up one a week
Biomass biomass CO shift 32.1 kg CO2/kg H2 12 hr liq H2 stor
1,169 MM Btu/h LHV gasifier 935 MM Btu/hr cool & clean 109,501 kg/hr CO2 75,000 kg liq H2 stor
1,239 MM Btu/h HHV 80.0% hot raw syngas 5% plus 15% from dryer 279,975 gal phy liq H2
70,268 kg/hr @8,000 Btu/lb dry LHV effic 50% CO/(H2+CO) syngas
PSA loses 47 MM Btu/hr PSA fuel gas
1,686 tons/d biomass bone dry 35 atm 70 MM Bur/h CO to H2 shifting storage
LHV loses
553,995 tons/yr biomass bone dry 56,215 kg/hr O2 6,250 kg/hr H2
55,400 hectares of land for biomass 711 MM Btu/hr H2 61% overall effic raw bio to H2
216 square miles of land to grow biomass 2,590,625 scf/hr H2 @ 30 atm
4,000 /liq H2 truck H2
Electric Power ASU 4,000 kg liq H2/dis Liquefaction Liquid Hydrogen in Tanker Trucks
ASU 20,799 0.370 2 dispenser 11 38 Cryo tanker fill-ups/d at
H2 Liqu 68,750 kWh/kg O2 kWh/kg 150,000 design kg/d H2 or gal/d
Misc. 6,253 1,349 metric tons/d O2 gasoline equivalent
Total 95,802 kW 0.80 tons O2/ton dry feed 135,000 actual kg/d annual ave.
15% of biomass fired in FBC to dry gasifier biomass feed 1,902 Btu/lb water vaporized
1,433 tons/day bone dry biomass to gasifier 1,500 Btu/lb water vaporized minimum
at 0.75 kg CO2/kWh current U.S. average for all electricity = 71,851 kg/hr CO2 equivalent at power plants

Unit cost basis at cost/size Unit cost at millions of $


Capital Costs 100,000 kg/d H2 factors 150,000 kg/d H2 for 1 plant Notes
Biomass handling & drying $ 25 /kg/d dry bio 75%
$ 23 /kg/d dry bio 38.1 11 /kg/d green (wet) biomass
Shell gasifer $ 20 /kg/d dry bio 80%
$ 18 /kg/d dry bio 52.9 100% spare unit H2O quench
Air separation unit (ASU) $ 27 /kg/d oxygen 75%
$ 24 /kg/d oxygen 32.9 $ 1,583 /kW power
CO shift, cool & cleanup $ 15 /kg/d CO2 75%
$ 14 /kg/d CO2 35.6 $ 0.6 /scf/d H2 MDEA & PSA
H2 Cryo Liquefaction $ 700 /kg/d H2 70%
$ 620 /kg/d H2 93.0 $ 1,352 /kW power
Liquid H2 storage $ 5 /gal phy vol 70%
$ 4 /gal phy vol 1.2 $ 17 kg of H2 liquid storage
Liquid H2 dispenser $ 100,000 /dispenser 100%
$ 100,000 /dispenser 0.2 $ 1 /kg/d dispenser design
Total process units 253.9
General Facilities 30% of process units 76.2 20-40% typical, SMR + 10%
Engineering Permitting & Startup 15% of process units 38.1 10-20% typical
Contingencies 10% of process units 25.4 10-20% typical, low after the first few
Working Capital, Land & Misc. 7% of process units 17.8 5-10% typical
U.S. Gulf Coast Capital Costs 411.3
Site specific factor 110% of US Gulf Coast costs Total Capital Costs 452.5
Unit Capital Costs 7.28 /scf/d H2 or 3,017 /kg/d H2 or 3,017 /gal/d gaso equiv

million $/yr $/million $/1,000 $/kg H2 or


Hydrogen Costs at 90% ann load factor of 1 plant Btu LHV scf H2 $/gal gaso equiv Notes
Variable Non-fuel O&M 1.0% /yr of capital 4.5 0.81 0.22 0.09 0.5-1.5% typical
Delivered biomass $ 3.22 /MM Btu HHV 31.5 5.61 1.54 0.64 based on costs below
Electricity $ 0.045 /kWh 34.0 6.06 1.66 0.69 0.04-0.05/kWh typical industrial rates
Variable Operating Cost 70.0 12.48 3.43 1.42
Fixed Operating Cost 5.0% /yr of capital 22.6 4.03 1.11 0.46 4-7% typical for refining
Capital Charges 18% /yr of capital 81.4 14.52 3.99 1.65 20-25% typical for refining
Total Liquid Hydrogen Costs from Biomass 174.1 31.04 8.52 3.53 including return on investment
plant gate still requires distribution

Delivered biomass @ $ 56.82 /bone dry ton (BDT) or $ 3.22 /million Btu LHV based on below:
$ 500 /hectare per yr gross total revenues or $ 200 /acre per yr gross total revenues If waste bio or coproduct
10 ton biomass/yr per ha - bone dry basic or 4.0 tons biomass/yr per acre - bone dry lower gross revenue needs
8,000 Btu/lb HHV bone dry and 50% moisture of green biomass but much lower yield/ha
$ 2.08 /mile round trip for typical 25 ton truck hauling green biomass
41 miles round trip haul = $ 3.41 /ton green or $ 6.82 /ton bone dry equivalent transportation

Source SFA Pacific, Inc


Path C3
Central Hydrogen via Steam Reformer of Natural Gas, Shipped by Gas Pipeline
Final Version June 2002 IHIG Confidential
Color codes variables via summary inputs key outputs

gasoline equivalent
1 Central Plant Design Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv
Size range kg/d H2 gal/d Btu/hr scf/d H2 MW t Assuming 90% annual load factor at
Maximum 1,000,000 1,000,000 4,742 414,500,000 1,389 actual H2 49,275,000 kg/y H2 /station or gal/y gaso equiv
This run 150,000 150,000 711 62,175,000 208 or 4,106,250 kg/month H2 or gal/mo. gaso equiv
Minimum 20,000 20,000 95 8,290,000 28 thereby 225,844 vehicles can be serviced at
32,263 fill-ups/d @ 4.2 kg or gal equiv/fill-up
H2 or each vehicle fills up one a week
Electric Power Compress 6,250 kg/hr H2
Compress 3,125 0.5 75 atm
SMR & misc. 1,295 kW/kg/h
Total 4,420 kW 2.5 compression ratio

2,590,625 scf/hr H2
30 atm
SMR
Natural Gas 76.2% Hydrogen in Gas Pipeline @ 75 atm
934 MM Btu/h LHV LHV effic
1,036 MM Btu/h HHV 150,000 design kg/d H2 or gal/d
1,036,186 scf/hr @ 1,000 Btu/scf 360 Btu LHV/scf H2 gasoline equivalent
20,435 kg/hr @23,000 Btu/lb 135,000 actual kg/d annual ave.
56,197 kg/hr CO2, however in dilute N2 rich SMR flue gas
at 0.75 kg CO2/kWh current U.S. average = 3,315 kg/hr CO2 equivalent at power plants
9.5 kg CO2/kg H2
Unit cost basis at cost/size Unit cost at millions of $
Capital Costs 100,000 kg/d H2 factors 150,000 kg/d H2 for 1 plant Notes
SMR $ 0.75 /scf/d 70% $ 0.66 /scf/d 41.3 $ 275 /kg/d H2
H2 Compressor $ 2,000 /kW 90% $ 1,921 /kW 6.0 $ 40 /kg/d H2
Total process units 47.3
General Facilities 20% of process units 9.5 20-40% typical
Engineering Permitting & Startup 15% of process units 7.1 10-20% typical
Contingencies 10% of process units 4.7 10-20% typical, low after the first few
Working Capital, Land & Misc. 7% of process units 3.3 5-10% typical
U.S. Gulf Coast Capital Costs 71.9
Site specific factor 110% of US Gulf Coast costs Total Capital Costs 79.1
Unit Capital Costs 1.27 /scf/d H2 or 527 /kg/d H2 or 527 /gal/d gaso equiv

million $/yr $/million $/1,000 $/kg H2 or


Hydrogen Costs at 90% ann load factor of 1 plant Btu LHV scf H2 $/gal gaso equiv Notes
Variable Non-fuel O&M 1.0% /yr of capital 0.8 0.14 0.04 0.02 0.5-1.5% typical
Natural Gas $ 3.50 /MM Btu HHV 28.6 5.10 1.40 0.58 $2.50-4.50/MM Btu industrial rate
Electricity $ 0.045 /kWh 1.6 0.28 0.08 0.03 $0.04-0.05/kWh industrial rate
Variable Operating Cost 31.0 5.52 1.52 0.63
Fixed Operating Cost 5.0% /yr of capital 4.0 0.70 0.19 0.08 4-7% typical for refining
Capital Charges 18% /yr of capital 14.2 2.54 0.70 0.29 20-25% typical for refining
Total Gaseous Hydrogen Costs from Natural Gas 49.1 8.76 2.41 1.00 including return on investment
into pipeline still requires distribution

note: Assume no central plant storage or compression of hydrogen due to pipeline volume & SMR at 30 atm pressure

Source SFA Pacific, Inc


Path C4
Central Hydrogen via Steam Reformer of Natural Gas, Shipped by Cryogenic Liquid Trucks
Final Version June 2002 IHIG Confidential
Color codes variables via summary inputs key outputs

gasoline equivalent
1 Central Plant Design Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv
Size range kg/d H2 gal/d Btu/hr scf/d H2 MW t Assuming 90% annual load factor at
Maximum 1,000,000 1,000,000 4,742 414,500,000 1,389 actual H2 49,275,000 kg/y H2 /station or gal/y gaso equiv
This run 150,000 150,000 711 62,175,000 208 or 4,106,250 kg/month H2 or gal/mo. gaso equiv
Minimum 20,000 20,000 95 8,290,000 28 thereby 225,844 vehicles can be serviced at
32,263 fill-ups/d @ 4.2 kg or gal equiv/fill-up
H2 Liquid H2 or each vehicle fills up one a week
Electric Power Liquefaction 6,250 kg/hr lig H2 storage
Liquefaction 68,750 11.0 at 2 atm 12 75,000 kg H2
SMR & misc. 1,295 kW/kg/h hr installed max storage
Total 70,045 kW 279,975 gal physical vol of liq H2 at 2 atm press
2,590,625 scf/hr H2
at 30 atm. 20 max tanker trucks/hr at this production & storage

SMR 4,000 Liquid H2


Natural Gas 76.2% kg/tanker dispenser Liquid Hydrogen in Tanker Trucks
934 MM Btu/h LHV LHV effic 60 5,000 38 Cryo tanker fill-ups/d at
1,036 MM Btu/h HHV min/fill-up kg/hr/dis 150,000 design kg/d H2 or gal/d
1,036,186 scf/hr @ 1,000 Btu/scf 360 Btu LHV/scf H2 2 dispenser gasoline equivalent
20,435 kg/hr @23,000 Btu/lb 135,000 actual kg/d annual ave.
56,197 kg/hr CO2, however in dilute N2 rich SMR flue gas
at 0.75 kg CO2/kWh current U.S. average = 52,534 kg/hr CO2 equivalent at power plants
17.4 kg CO2/kg H2

Unit cost basis at cost/size Unit cost at


millions of $
Capital Costs 100,000 kg/d H2 factors 150,000 kg/d H2 for 1 plant Notes
SMR $ 0.75 /scf/d H2 $70% 0.66 /scf/d H2 41.3 $ 275 /kg/d H2
H2 Cryo Liquefaction $ 700 /kg/d H2 $75% 633 /kg/d H2 94.9 $ 1,380 /kW power
Liquid H2 storage $ 5 /gal phy vol $70% 4 /gal phy vol 1.2 $ 17 kg of H2 liquid storage
Liquid H2 dispenser $ 100,000 /dispenser 100%
$ 100,000 /dispenser 0.2 $ 1 /kg/d dispenser design
Total process units137.6
General Facilities 20% of process units 27.5 20-40% typical
Engineering Permitting & Startup 15% of process units 20.6 10-20% typical
Contingencies 10% of process units 13.8 10-20% typical, low after the first few
Working Capital, Land & Misc. 7% of process units 9.6 5-10% typical
U.S. Gulf Coast Capital Costs 209.2
Site specific factor 110% of US Gulf Coast costs Total Capital Costs 230.1
Unit Capital Costs 3.70 /scf/d H2 or 1,534 /kg/d H2 or 1,534 /gal/d gaso equiv

million $/yr $/million $/1,000 $/kg H2 or


Hydrogen Costs at 90% ann load factor of 1 plant Btu LHV scf H2 $/gal gaso equiv Notes
Variable Non-fuel O&M 1.0% /yr of capital 2.3 0.41 0.11 0.05 0.5-1.5% typical
Natural Gas $ 3.50 /MM Btu HHV 28.6 5.10 1.40 0.58 $2.50-4.50/MM Btu industrial rate
Electricity $ 0.045 /kWh 24.9 4.43 1.22 0.50 $0.04-0.05/kWh industrial rate
Variable Operating Cost 55.7 9.94 2.73 1.13
Fixed Operating Cost 5.0% /yr of capital 11.5 2.05 0.56 0.23 4-7% typical for refining
Capital Charges 18% /yr of capital 41.4 7.38 2.03 0.84 20-25% typical for refining
Total Liquid Hydrogen Costs from Natural Gas 108.7 19.38 5.32 2.21 including return on investment
plant gate still requires distribution

note: Assuming all storage liquid boil-off is recycled back to hydrogen liquefaction units, thereby no hydrogen losses

Source SFA Pacific, Inc


Path C5
Central Hydrogen via Electrolysis of Water, Shipped by Gas Pipeline
Final Version June 2002 IHIG Confidential
Color codes variables via summary inputs key outputs

gasoline equivalent
1 Central Plant Design Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv
Size range kg/d H2 gal/d Btu/hr scf/d H2 MW t Assuming 90% annual load factor at
Maximum 1,000,000 1,000,000 4,742 414,500,000 1,389 actual H2 49,275,000 kg/y H2 /station or gal/y gaso equiv
This run 150,000 150,000 711 62,175,000 208 or 4,106,250 kg/month H2 or gal/mo. gaso equiv
Minimum 20,000 20,000 95 8,290,000 28 thereby 225,844 vehicles can be serviced at
32,263 fill-ups/d @ 4.2 kg or gal equiv/fill-up
Electric Power H2 HP hydrogen or each vehicle fills up one a week
Compress 12,343 Compress 6,250 kg/hr H2
Misc. 1,875 2.0 75 at 75 atm
Electrolysis 328,083 kW/kg/h
Total 340,427 kW 7.5 compression ratio
3
2,590,625 scf/hr H2 at
10 atm
Electrolysis
50,000 kg/hr O2 75.0% 63.5% Hydrogen in Gas Pipeline @ 75 atm
Water electric LHV H2
56,250 kg/hr efficiency efficiency 150,000 design kg/d H2 or gal/d
gasoline equivalent
theoretical power 39.37 kWh/kg H2 at 100% electric efficiency 135,000 actual kg/d annual ave.
actual power 52.49 kWh/kg or 4.73 kWh/Nm3 H2
at 0.75 kg CO2/kWh current U.S. average for all electricity = 255,320 kg/hr CO2 equivalent at power plants
40.9 kgCO2/kg H2
Unit cost basis at cost/size Unit cost at millions of $
Capital Costs 100,000 kg/d H2 factors 150,000 kg/d H2 for 1 plant Notes
Electrolyser $ 1,000 /kW 90% $ 960 /kW 315.0 $ 5.1 /scf/d H2
H2 Compressor $ 2,000 /kW 90% $ 1,921 /kW 23.7 $ 158 /kg/d H2
Total process units 338.8
General Facilities 20% of process units 67.8 20-40% typical
Engineering Permitting & Startup 15% of process units 50.8 10-20% typical
Contingencies 10% of process units 33.9 10-20% typical, low after the first few
Working Capital, Land & Misc. 7% of process units 23.7 5-10% typical
U.S. Gulf Coast Capital Costs 514.9
Site specific factor 110% of US Gulf Coast costs Total Capital Costs 566.4
Unit Capital Costs of 9.11 /scf/d H2 or 3,776 /kg/d H2 or 3,776 /gal/d gaso equiv

million $/yr $/million $/1,000 $/kg H2 or


Hydrogen Costs at 90% ann load factor of 1 plant Btu LHV scf H2 $/gal gaso equiv Notes
Non-fuel Variable O&M 1.0% /yr of capital 5.664 1.01 0.28 0.11 0.5-1.5% typical
Oxygen byproduct $ (10) /ton O2 (3.942) (0.70) (0.19) (0.08) large amount could create min. value
Electricity $ 0.045 /kWh 120.777 21.54 5.91 2.45 $0.04-0.05/kWh industrial rate
Variable Operating Cost 122.498 21.84 6.00 2.49
Fixed Operating Cost 5.0% /yr of capital 28.320 5.05 1.39 0.57 4-7% typical for refining
Capital Charges 18% /yr of capital 101.951 18.18 4.99 2.07 20-25% typical for refining
Total Gaseous Hydrogen Costa from Electrolysis 252.769 45.07 12.38 5.13 including return on investment
into pipeline still requires distribution

Note: if 12 hr/d at only $ 0.020 /kWh lower off-peak rate and


12 hr/d at $ 0.060 /kWh higher peak rate daily average rate is $ 0.040 /kWh
If only operated during low off-peak rates times would have low ann load factor & expensive H2 storage
Assume Hydrogn Systems Electrolysis at 150 psig pressure, Norsk Hydro & Stuard systems are low pressure

Source SFA Pacific, Inc


Path C6
Central Hydrogen via Electrolysis of Water, Shipped by Cryogenic Liquid Tankers
Final Version June 2002 IHIG Confidential
Color codes variables via summary inputs key outputs

gasoline equivalent
1 Central Plant Design Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv
Size range kg/d H2 gal/d Btu/hr scf/d H2 MW t Assuming 90% annual load factor at
Maximum 1,000,000 1,000,000 4,742 414,500,000 1,389 actual H2 49,275,000 kg/y H2 /station or gal/y gaso equiv
This run 150,000 150,000 711 62,175,000 208 or 4,106,250 kg/month H2 or gal/mo. gaso equiv
Minimum 20,000 20,000 95 8,290,000 28 thereby 225,844 vehicles can be serviced at
32,263 fill-ups/d @ 4.2 kg or gal equiv/fill-up
Electric Power H2 Liq hydrogen Liquid H2 or each vehicle fills up one a week
Liquefaction 75,000 Liquefaction 6,250 kg/hr H2 storage
Misc. 1,875 12.0 2 atm 12 75,000 kg H2
Electrolysis 328,083 kW/kg/h hr installed max storage
Total 403,083 kW 279,750 gal physical vol of liq H2 at 2 atm press

2,590,625 scf/hr H2 at 20 max trucks/hr at this production & storage


10 atm
Electrolysis 4,000 Liquid H2
50,000 kg/hr O2 75.0% 63.5% kg/tanker dispenser Liquid Hydrogen in Tanker Trucks
Water electric LHV H2 60 4,000 38 Cryo tanker fill-ups/d at
56,250 kg/hr efficiency efficiency min/fill-up kg/hr/dis 150,000 design kg/d H2 or gal/d
2 dispenser gasoline equivalent
theoretical power 39.37 kWh/kg H2 at 100% electric efficiency 135,000 actual kg/d annual ave.
actual power 52.49 kWh/kg or 4.73 kWh/Nm3 H2
at 0.75 kg CO2/kWh current U.S. average for all electricity = 302,313 kg/hr CO2 equivalent at power plants
48.4 kgCO2/kg H2
Unit cost basis at cost/size Unit cost at millions of $
Capital Costs 100,000 kg/d H2 factors 150,000 kg/d H2 for 1 plant Notes
Electrolyser $ 1,000 /kW 90% $ 960 /kW 315.0 $ 5.1 /scf/d H2
H2 Cryo Liquefaction $ 700 /kg/d H2 75% $ 633 /kg/d H2 94.9 $ 1,265 /kW power
Liquid H2 storage $ 5 /gal phy vol 70% $ 4 /gal phy vol 1.2 $ 17 kg of H2 liquid storage
Liquid H2 dispenser $ 150,000 /dispenser 100% $ 150,000 /dispenser 0.3 $ 2 /kg/d dispenser design
Total process units 411.5
General Facilities 20% of process units 82.3 20-40% typical
Engineering Permitting & Startup 15% of process units 61.7 10-20% typical
Contingencies 10% of process units 41.1 10-20% typical, low after the first few
Working Capital, Land & Misc. 7% of process units 28.8 5-10% typical
U.S. Gulf Coast Capital Costs 625.4
Site specific factor 110% of US Gulf Coast costs Total Capital Costs $ 688.0
Unit Capital Costs of 11.07 /scf/d H2 or 4,586 /kg/d H2 or 4,586 /gal/d gaso equiv

million $/yr $/million $/1,000 $/kg H2 or


Hydrogen Costs at 90% ann load factor of 1 plant Btu LHV scf H2 $/gal gaso equiv Notes
Non-fuel Variable O&M 1.0% /yr of capital 6.880 1.23 0.34 0.14 0.5-1.5% typical
Oxygen byproduct $ (10) /ton O2 (3.942) (0.70) (0.19) (0.08) large amount could create min. value
Electricity $ 0.045 /kWh 143.006 25.50 7.00 2.90 $0.04-0.05/kWh industrial rate
Variable Operating Cost 145.944 26.02 7.15 2.96
Fixed Operating Cost 5.0% /yr of capital 34.398 6.13 1.68 0.70 4-7% typical for refining
Capital Charges 18% /yr of capital 123.834 22.08 6.06 2.51 20-25% typical for refining
Total Liquid Hydrogen Costs from Electrolysis 304.176 54.24 14.89 6.17 including return on investment
plant gate still requires distribution

Note: if 12 hr/d at only $ 0.020 /kWh lower off-peak rate and


12 hr/d at $ 0.060 /kWh higher peak rate daily average rate is $ 0.040 /kWh
If only operated during low off-peak rates times would have low ann load factor & need more H2 storage
Assume Hydrogn Systems Electrolysis at 150 psig pressure, Norsk Hydro & Stuard systems are low pressure

Source SFA Pacific, Inc


Path C7
Central Hydrogen via Petroleum Coke Gasification, Shipped by Pipeline
Final Version June 2002 IHIG Confidential
Color codes variables via summary inputs key outputs

gasoline equivalent
1 Central Plant Design Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv
Size range kg/d H2 gal/d Btu/hr scf/d H2 MW t Assuming 90% annual load factor at
Maximum 1,000,000 1,000,000 4,742 414,500,000 1,389 actual H2 49,275,000 kg/y H2 /station or gal/y gaso equiv
This run 150,000 150,000 711 62,175,000 208 or 4,106,250 kg/month H2 or gal/mo. gaso equiv
Minimum 20,000 20,000 95 8,290,000 28 thereby 225,844 vehicles can be serviced at
32,263 fill-ups/d @ 4.2 kg or gal equiv/fill-up
Petroleum Coke pet coke CO shift or each vehicle fills up one a week
1,086 MM Btu/h LHV gasifier 814 MM Btu/hr cool & clean 21.3 kg CO2/kg H2
1,118 MM Btu/h HHV 75.0% hot raw syngas 5% 117,087 kg/hr CO2 + 45 ton/d sulfur
37,568 kg/hr @13,500 Btu/lb dry LHV effic 65% CO/(H2+CO) syngas
PSA loses 41 MM Btu/hr PSA fuel gas
902 tons/d dry pet coke 75 atm 79 MM Bur/h CO to H2 shifting LHV loses
5% sulfur coke 39,446 kg/hr O2 6,250 kg/hr H2
711 MM Btu/hr H2 66% overall effic coke to H2
2,590,625 scf/hr H2 @ 30 atm

Electric Power ASU Hydrogen in Gas Pipeline @ 75 atm


ASU 15,779 0.40
Misc. 5,210 kWh/kg O2 150,000 design kg/d H2 or gal/d
Total 20,989 kW 947 metric tons/d O2 gasoline equivalent
1.05 tons O2/ton dry feed 135,000 actual kg/d annual ave.
at 0.75 kg CO2/kWh current U.S. average for all electricity = 15,742 kg/hr CO2 equivalent at power plants

Unit cost basis at cost/size Unit cost at millions of $


Capital Costs 100,000 kg/d H2 factors
150,000 kg/d H2 for 1 plant Notes
Coke handling & prep $ 20 /kg/d coke $75% 18 /kg/d coke 16.3
Texaco coke gasifers $ 25 /kg/d coke $85% 24 /kg/d coke 42.4 100% spare unit HP quench
Air separation unit (ASU) $ 28 /kg/d oxygen $75% 25 /kg/d oxygen 24.0 $ 1,518 /kW ASU power
CO shift, cool & cleanup $ 20 /kg/d CO2 $75% 18 /kg/d CO2 50.8 $ 0.8 /scf/d H2 MDEA & PSA
Sulfur recovery $ 330 /kg/d sulfur $80% 304 /kg/d sulfur 13.7 lower unit cost that coal due to high S
Total process units 133.5
General Facilities 30% of process units 40.0 20-40% typical, SMR + 10%
Engineering Permitting & Startup 15% of process units 20.0 10-20% typical
Contingencies 10% of process units 13.3 10-20% typical, low after the first few
Working Capital, Land & Misc. 7% of process units 9.3 5-10% typical
U.S. Gulf Coast Capital Costs 216.2
Site specific factor 110% of US Gulf Coast costs Total Capital Costs 237.8
Unit Capital Costs 3.82 /scf/d H2 or 1,585 /kg/d H2 or 1,585 /gal/d gaso equiv

million $/yr $/million $/1,000 $/kg H2 or


Hydrogen Costs at 90% ann load factor of 1 plant Btu LHV scf H2 $/gal gaso equiv Notes
Variable Non-fuel O&M 1.0% /yr of capital 2.4 0.42 0.12 0.05 0.5-1.5% typical
Pet Coke $ 0.20 /MM Btu HHV 1.8 0.31 0.09 0.04 $0.00-0.50/MM Btu typical at refinery
Electricity $ 0.045 /kWh 7.4 1.33 0.36 0.15 $0.04-0.05/kWh industrial rate
Variable Operating Cost 11.6 2.07 0.57 0.24
Fixed Operating Cost 5.0% /yr of capital 11.9 2.12 0.58 0.24 4-7% typical for refining
Capital Charges 18% /yr of capital 42.8 7.63 2.10 0.87 20-25% typical for refining
Total Gaseous Hydrogen Costs from Pet Coke 66.3 11.82 3.25 1.35 including return of investment
into pipeline still requires distribution

note $ 5.95 /tonne pet coke price from above $/MM Btu input at 13,500 Btu/lb HHV

Source SFA Pacific, Inc


Path C8
Central Hydrogen via Coal Gasification, Shipped by Pipeline
Final Version June 2002 IHIG Confidential
Color codes variables via summary inputs key outputs

gasoline equivalent
1 Central Plant Design Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv
Size range kg/d H2 gal/d Btu/hr scf/d H2 MW t Assuming 90% annual load factor at
Maximum 1,000,000 1,000,000 4,742 414,500,000 1,389 actual H2
49,275,000 kg/y H2 /station or gal/y gaso equiv
This run 150,000 150,000 711 62,175,000 208 or
4,106,250 kg/month H2 or gal/mo. gaso equiv
Minimum 20,000 20,000 95 8,290,000 28 thereby225,844 vehicles can be serviced at
32,263 fill-ups/d @ 4.2 kg or gal equiv/fill-up
21 ton/d sulfur or each vehicle fills up one a week
Coal Coal CO shift
1,108 MM Btu/h LHV gasifier 809 MM Btu/hr cool & clean 21.7 kg CO2/kg H2
1,141 MM Btu/h HHV 73.0% hot raw syngas 5% 118,626 kg/hr CO2 21 ton/d sulfur
43,137 kg/hr @12,000 Btu/lb dry LHV effic 58% CO/(H2+CO) syngas
PSA loses 40 MM Btu/hr PSA fuel gas
1,035 tons/d dry bit coal 75 atm 70 MM Bur/h CO to H2 shifting LHV loses
2% sulfur 43,137 kg/hr O2 6,250 kg/hr H2
711 MM Btu/hr H2 64% overall effic coal to H2
2,590,625 scf/hr H2 @ 30 atm

Electric Power ASU Hydrogen in Gas Pipeline @ 75 atm


ASU 17,255 0.40
Misc. 5,210 kWh/kg O2 150,000 design kg/d H2 or gal/d
Total 22,465 kW 1,035 metric tons/d O2 gasoline equivalent
1.00 tons O2/ton dry feed 135,000 actual kg/d annual ave.
at 0.75 kg CO2/kWh current U.S. average for all electricity = 16,849 kg/hr CO2 equivalent at power plants

Unit cost basis at cost/size Unit cost at millions of $


Capital Costs 100,000 kg/d H2 factors
150,000 kg/d H2 for 1 plant Notes
Coal handling & prep $ 20 /kg/d coal $75% 18 /kg/d coal 18.7 solids & slurry prep
Texaco coal gasifers $ 25 /kg/d coal $85% 24 /kg/d coal 48.7 100% spare unit HP quench
Air separation unit (ASU) $ 28 /kg/d oxygen $75% 25 /kg/d oxygen 26.2 $ 1,518 /kW ASU power
CO shift, cool & cleanup $ 20 /kg/d CO2 $75% 18 /kg/d CO2 51.5 $ 0.8 /scf/d H2 MDEA & PSA
Sulfur recovery $ 400 /kg/d sulfur $80% 369 /kg/d sulfur 7.6 O2 Claus & tailgas treat
Total process units 145.1
General Facilities 30% of process units 43.5 20-40% typical, SMR + 10%
Engineering Permitting & Startup 15% of process units 21.8 10-20% typical
Contingencies 10% of process units 14.5 10-20% typical, low after the first few
Working Capital, Land & Misc. 7% of process units 10.2 5-10% typical
U.S. Gulf Coast Capital Costs 235.0
Site specific factor 110% of US Gulf Coast costs Total Capital Costs 258.5
Unit Capital Costs 4.16 /scf/d H2 or 1,723 /kg/d H2 or 1,723 /gal/d gaso equiv

million $/yr $/million $/1,000 $/kg H2 or


Hydrogen Costs at 90% ann load factor of 1 plant Btu LHV scf H2 $/gal gaso equiv Notes
Variable Non-fuel O&M 1.0% /yr of capital 2.6 0.46 0.13 0.05 0.5-1.5% typical
Coal $ 1.10 /MM Btu HHV 9.9 1.76 0.48 0.20 $0.75-1.25/MM Btu typical
Electricity $ 0.045 /kWh 8.0 1.42 0.39 0.16 $0.04-0.05/kWh industrial rate
Variable Operating Cost 20.5 3.65 1.00 0.42
Fixed Operating Cost 5.0% /yr of capital 12.9 2.30 0.63 0.26 4-7% typical for refining
Capital Charges 18% /yr of capital 46.5 8.30 2.28 0.94 20-25% typical for refining
Total Gaseous Hydrogen Costs from Coal 79.9 14.25 3.91 1.62 including return of investment
into pipeline still requires distribution

note $ 29.11 /tonne coal price from above $/MM Btu input at 12,000 Btu/lb HHV

Source SFA Pacific, Inc


Path C9
Central Hydrogen via Coal Gasification, Shipped by Cryogenic Tanker Truck
Final Version June 2002 IHIG Confidential
Color codes variables via summary inputs key outputs

gasoline equivalent
1 Central Plant Design Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv
Size range kg/d H2 gal/d Btu/hr scf/d H2 MW t Assuming 90% annual load factor at
Maximum 1,000,000 1,000,000 4,742 414,500,000 1,389 actual H2 49,275,000 kg/y H2 /station or gal/y gaso equiv
This run 150,000 150,000 711 62,175,000 208 or 4,106,250 kg/month H2 or gal/mo. gaso equiv
Minimum 20,000 20,000 95 8,290,000 28 thereby 225,844 vehicles can be serviced at
32,263 fill-ups/d @ 4.2 kg or gal equiv/fill-up
21 ton/d sulfur or each vehicle fills up one a week
Coal Coal CO shift 12 hr liq H2 storage
1,108 MM Btu/h LHV gasifier 809 MM Btu/hr cool & clean 30.3 kg CO2/kg H2 75,000 kg liq H2 stor
1,141 MM Btu/h HHV 73.0% hot raw syngas 5% 118,626 kg/hr CO2 279,975 gal phy liq H2
43,137 kg/hr @12,000 Btu/lb dry LHV effic 58% CO/(H2+CO) syngas
PSA loses 40 MM Btu/hr PSA fuel gas
1,035 tons/d dry bit coal 80 atm 70 MM Bur/h CO to H2 shifting LHV loses
2% sulfur 47,451 kg/hr O2 6,250 kg/hr H2
711 MM Btu/hr H2 64% overall effic coal to H2
2,590,625 scf/hr H2 @ 30 atm
4,000 /liq H2 truck H2
Electric Power ASU 4,000 kg liq H2/dis Liquefaction Liquid Hydrogen in Tanker Trucks
ASU 18,980 0.40 2 dispenser 11 38 Cryo tanker fill-ups/d at
H2 Liqu 68,750 kWh/kg O2 kWh/kg 150,000 design kg/d H2 or gal/d
Misc. 6,253 1,139 metric tons/d O2 gasoline equivalent
Total 93,983 kW 1.10 tons O2/ton dry feed 135,000 actual kg/d annual ave.

at 0.75 kg CO2/kWh current U.S. average for all electricity = 70,487 kg/hr CO2 equivalent at power plants

Unit cost basis at cost/size Unit cost at millions of $


Capital Costs 100,000 kg/d H2 factors
150,000 kg/d H2 for 1 plant Notes
Coal handling & prep $ 20 /kg/d coal 75%
$ 18 /kg/d coal 18.7 solids & slurry prep
Texaco coal gasifers $ 25 /kg/d coal 85%
$ 24 /kg/d coal 48.7 100% spare unit HP quench
Air separation unit (ASU) $ 28 /kg/d oxygen 75%
$ 25 /kg/d oxygen 28.8 $ 1,518 /kW ASU power
CO shift, cool & cleanup $ 20 /kg/d CO2 75%
$ 18 /kg/d CO2 51.5 $ 0.8 /scf/d H2 MDEA & PSA
Sulfur recovery $ 400 /kg/d sulfur 80%
$ 369 /kg/d sulfur 7.6 O2 Claus & tailgas treat
H2 Cryo Liquefaction $ 700 /kg/d H2 75%
$ 633 /kg/d H2 94.9 $ 1,380 /kW power
Liquid H2 storage $ 5 /gal phy vol 70%
$ 4 /gal phy vol 1.2 $ 4 kg of H2 liquid storage
Liquid H2 dispenser $ 100,000 /dispenser 100%
$ 100,000 /dispenser 0.2 $ 1 /kg/d dispenser design
Total process units 251.6
General Facilities 30% of process units 75.5 20-40% typical, SMR + 10%
Engineering Permitting & Startup 15% of process units 37.7 10-20% typical
Contingencies 10% of process units 25.2 10-20% typical, low after the first few
Working Capital, Land & Misc. 7% of process units 17.6 5-10% typical
U.S. Gulf Coast Capital Costs 407.7
Site specific factor 110% of US Gulf Coast costs Total Capital Costs 448.4
Unit Capital Costs 7.21 /scf/d H2 or 2,989 /kg/d H2 or 2,989 /gal/d gaso equiv

million $/yr $/million $/1,000 $/kg H2 or


Hydrogen Costs at 90% ann load factor of 1 plant Btu LHV scf H2 $/gal gaso equiv Notes
Variable Non-fuel O&M 1.0% /yr of capital 4.5 0.80 0.22 0.09 0.5-1.5% typical
Coal $ 1.10 /MM Btu HHV 9.9 1.76 0.48 0.20 $0.75-1.25/MM Btu typical
Electricity $ 0.045 /kWh 33.3 5.95 1.63 0.68 $0.04-0.05/kWh industrial rate
Variable Operating Cost 47.7 8.51 2.34 0.97
Fixed Operating Cost 5.0% /yr of capital 22.4 4.00 1.10 0.46 4-7% typical for refining
Capital Charges 18% /yr of capital 80.7 14.39 3.95 1.64 20-25% typical for refining
Total Liquid Hydrogen Costs from Coal 150.9 26.90 7.39 3.06 including return of investment
plant gate still requires distribution

note $ 29.11 /tonne coal price from above $/MM Btu input at 12,000 Btu/lb HHV

Source SFA Pacific, Inc


Path C10
Central Hydrogen via Biomass Gasification, Shipped by High Pressure Gas Tube Trailers
Final Version June 2002 IHIG Confidential
Color codes variables via summary inputs key outputs

gasoline equivalent
1 Central Plant Design Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv
Size range kg/d H2 gal/d Btu/hr scf/d H2 MW t Assuming 90% annual load factor at
Maximum 200,000 200,000 948 82,900,000 278 actual H2 49,275,000 kg/y H2 /station or gal/y gaso equiv
This run 150,000 150,000 711 62,175,000 208 or 4,106,250 kg/month H2 or gal/mo. gaso equiv
Minimum 20,000 20,000 95 8,290,000 28 thereby 225,844 vehicles can be serviced at
32,263 fill-ups/d @ 4.2 kg or gal equiv/fill-up
Shell gasifier to avoid high CH4 & secondary SMR or ATR or each vehicle fills up one a week
Biomass biomass CO shift 25.4 kg CO2/kg H2 12 h gas H2 stor
1,169 MM Btu/h LHV gasifier 935 MM Btu/hr cool & clean 109,501 kg/hr CO2 75,000 kg liq H2 stor
1,239 MM Btu/h HHV 80.0% hot raw syngas 5% plus 15% from dryer 1,081,395 gal phy store
70,268 kg/hr @8,000 Btu/lb dry LHV effic 50% CO/(H2+CO) syngas
PSA loses 47 MM Btu/hr PSA fuel gas
1,686 tons/d biomass bone dry 35 atm 70 MM Bur/h CO to H2 shifting storage
LHV loses
553,995 tons/yr biomass bone dry 56,215 kg/hr O2 6,250 kg/hr H2 61% overall effic raw bio to H2
55,400 hectares of land for biomass 711 MM Btu/hr H2
216 square miles of land to grow biomass 2,590,625 scf/hr H2 @ 30 atm
200 HP H2 HP Hydrogen Gas in Tube Trailers
Electric Power ASU kg/trailer compress at 165 atm pressure
ASU 20,799 0.370 60 2.0 750 Trailer fill-ups/d at
Compress 12,500 kWh/kg O2 min/fill-up kWh/kg 150,000 design kg/d H2 or gal/d
Misc. 6,253 1,349 metric tons/d O2 215 atm gasoline equivalent
Total 39,552 kW 0.80 tons O2/ton dry feed 21 dispenser 135,000 actual kg/d annual ave.
15% of biomass fired in FBC to dry gasifier biomass feed 1,902 Btu/lb water vaporized
1,433 tons/day bone dry biomass to gasifier 1,500 Btu/lb water vaporized minimum
at 0.75 kg CO2/kWh current U.S. average for all electricity = 29,664 kg/hr CO2 equivalent at power plants

Unit cost basis at cost/size Unit cost at millions of $


Capital Costs 100,000 kg/d H2 factors 150,000 kg/d H2 for 1 plant Notes
Biomass handling & drying $ 25 /kg/d dry bio 75%
$ 23 /kg/d dry bio 38.1 11 /kg/d green (wet) biomass
Shell gasifier $ 20 /kg/d dry bio 85%
$ 19 /kg/d dry bio 54.0 100% spare unit H2O quench
Air separation unit (ASU) $ 27 /kg/d oxygen 75%
$ 24 /kg/d oxygen 32.9 $ 1,583 /kW power
CO shift, cool & cleanup $ 15 /kg/d CO2 75%
$ 14 /kg/d CO2 35.6 $ 0.6 /scf/d H2 MDEA & PSA
H2 Compressor $ 2,000 /kWh 75%
$ 1,807 /kWh 22.6 $ 151 //kg/d H2
HP H2 gas storage $ 20 /gal phy vol 70%
$ 18 /gal phy vol 19.2 $ 255 /kg of HP H2 gas storage
HP H2 gas dispenser $ 30,000 /dispenser 100%
$ 30,000 /dispenser 0.6 $ 3 /kg/d dispenser design
Total process units 203.0
General Facilities 30% of process units 60.9 20-40% typical, SMR + 10%
Engineering Permitting & Startup 15% of process units 30.4 10-20% typical
Contingencies 10% of process units 20.3 10-20% typical, low after the first few
Working Capital, Land & Misc. 7% of process units 14.2 5-10% typical
U.S. Gulf Coast Capital Costs 328.8
Site specific factor 110% of US Gulf Coast costs Total Capital Costs 361.7
Unit Capital Costs 5.82 /scf/d H2 or 2,411 /kg/d H2 or 2,411 /gal/d gaso equiv

million $/yr $/million $/1,000 $/kg H2 or


Hydrogen Costs at 90% ann load factor of 1 plant Btu LHV scf H2 $/gal gaso equiv Notes
Variable Non-fuel O&M 1.0% /yr of capital 3.6 0.64 0.18 0.07 0.5-1.5% typical
Delivered biomass $ 3.22 /MM Btu HHV 31.5 5.61 1.54 0.64 based on costs below
Electricity $ 0.045 /kWh 14.0 2.50 0.69 0.28 0.04-0.05/kWh typical industrial rates
Variable Operating Cost 49.1 8.76 2.41 1.00
Fixed Operating Cost 5.0% /yr of capital 18.1 3.22 0.89 0.37 4-7% typical for refining
Capital Charges 18% /yr of capital 65.1 11.61 3.19 1.32 20-25% typical for refining
Total HP Gas Hydrogen Costs from Biomass 132.3 23.59 6.48 2.69 including return of investment
plant gate still requires distribution

Delivered biomass @ $ 56.82 /bone dry ton (BDT) or $ 3.22 /million Btu LHV based on below:
$ 500 /hectare per yr gross total revenues or $ 200 /acre per yr gross total revenues If waste bio or coproduct
10 ton biomass/yr per ha - bone dry basic or 4.0 tons biomass/yr per acre - bone dry lower gross revenue needs
8,000 Btu/lb HHV bone dry and 50% moisture of green biomass but much lower yield/ha
$ 2.08 /mile round trip for typical 25 ton truck hauling green biomass
41 miles round trip haul = $ 3.41 /ton green or $ 6.82 /ton bone dry equivalent transportation

Source SFA Pacific, Inc


Path C11
Central Hydrogen via Steam Reformer of Natural Gas, Shipped by High Pressure Gas Tube Trailers
Final Version June 2002 IHIG Confidential
Color codes variables via summary inputs key outputs

gasoline equivalent
1 Central Plant Design Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv
Size range kg/d H2 gal/d Btu/hr scf/d H2 MW t Assuming 90% annual load factor at
Maximum 1,000,000 1,000,000 4,742 414,500,000 1,389 actual H2 49,275,000 kg/y H2 /station or gal/y gaso equiv
This run 150,000 150,000 711 62,175,000 208 or 4,106,250 kg/month H2 or gal/mo. gaso equiv
Minimum 20,000 20,000 95 8,290,000 28 thereby 225,844 vehicles can be serviced at
32,263 fill-ups/d @ 4.2 kg or gal equiv/fill-up
H2 HP H2 or each vehicle fills up one a week
Electric Power Compress 6,250 kg/hr lig H2 storage
Compress 9,572 1.5 215 atm 12 67,500 kg H2 max storage or
SMR & misc. 1,295 kW/kg/h hr 1,070,581 gal phy vol at 215 atm
Total 10,868 kW 7 compression ratio
2 stages
2,590,625 scf/hr H2 369 max tube trailers/hr at this production & storage
30 atm
SMR 200 HP H2 HP Hydrogen Gas in Tube Trailers
Natural Gas 76.2% kg/trailer dispenser at 165 atm pressure
934 MM Btu/h LHV LHV effic 60 300 750 Trailer fill-ups/d at
1,036 MM Btu/h HHV min/fill-up kg/hr/dis 150,000 design kg/d H2 or gal/d
1,036,186 scf/hr @ 1,000 Btu/scf 360 Btu LHV/scf H2 21 dispenser gasoline equivalent
20,435 kg/hr @23,000 Btu/lb 135,000 actual kg/d annual ave.
56,197 kg/hr CO2, however in dilute N2 rich SMR flue gas
at 0.75 kg CO2/kWh current U.S. average = 8,151 kg/hr CO2 equivalent at power plants
10.3 kg CO2/kg H2
Unit cost basis at cost/size Unit cost at millions of $
Capital Costs 100,000 kg/d H2 factors 150,000 kg/d H2 for 1 plant Notes
SMR $ 0.75 /scf/d H2 70% $ 0.66 /scf/d H2 41.3 $ 275 /kg/d H2
H2 Compressor $ 2,000 /kWh 90% $ 1,921 /kWh 18.4 $ 123 /kg/d H2
HP H2 gas storage $ 20 /gal phy vol 70% $ 18 /gal phy vol 19.0 $ 281 /kg of HP H2 gas storage
HP H2 gas dispenser $ 30,000 /dispenser 100% $ 30,000 /dispenser 0.6 $ 4 /kg/d dispenser design
Total process units 79.3
General Facilities 20% of process units 15.9 20-40% typical
Engineering Permitting & Startup 15% of process units 11.9 10-20% typical
Contingencies 10% of process units 7.9 10-20% typical, low after the first few
Working Capital, Land & Misc. 7% of process units 5.5 5-10% typical
U.S. Gulf Coast Capital Costs 120.5
Site specific factor 110% of US Gulf Coast costs Total Capital Costs 132.5
Unit Capital Costs 2.13 /scf/d H2 or 884 /kg/d H2 or 884 /gal/d gaso equiv

million $/yr $/million $/1,000 $/kg H2 or


Hydrogen Costs at 90% ann load factor of 1 plant Btu LHV scf H2 $/gal gaso equiv Notes
Variable Non-fuel O&M 1.0% /yr of capital 1.3 0.24 0.06 0.03 0.5-1.5% typical
Natural Gas $ 3.50 /MM Btu HHV 28.6 5.10 1.40 0.58 $2.50-4.50/MM Btu industrial rate
Electricity $ 0.045 /kWh 3.9 0.69 0.19 0.08 $0.04-0.05/kWh industrial rate
Variable Operating Cost 33.8 6.02 1.65 0.69
Fixed Operating Cost 5.0% /yr of capital 6.6 1.18 0.32 0.13 4-7% typical for refining
Capital Charges 18% /yr of capital 23.9 4.25 1.17 0.48 20-25% typical for refining
Total HP Hydrogen Costs from Natural Gas 64.3 11.46 3.15 1.30 including return of investment
plant gate still requires distribution

note:

Source SFA Pacific, Inc


Path C12
Central Hydrogen via Electrolysis of Water, Shipped by High Pressure Gas Tube Trailers
Final Version June 2002 IHIG Confidential
Color codes variables via summary inputs key outputs

gasoline equivalent
1 Central Plant Design Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv
Size range kg/d H2 gal/d Btu/hr scf/d H2 MW t Assuming 90% annual load factor at
Maximum 200,000 200,000 948 82,900,000 278 actual H2 49,275,000 kg/y H2 /station or gal/y gaso equiv
This run 150,000 150,000 711 62,175,000 208 or 4,106,250 kg/month H2 or gal/mo. gaso equiv
Minimum 20,000 20,000 95 8,290,000 28 thereby 225,844 vehicles can be serviced at
32,263 fill-ups/d @ 4.2 kg or gal equiv/fill-up
Electric Power H2 HP H2 gas or each vehicle fills up one a week
Compress 12,389 Compress 6,250 kg/hr gas H2 storage
Misc. 1,875 2.0 215 atm 12 67,500 kg H2 max storage or
Electrolysis 328,083 kW/kg/h hr 1,070,581 gal phy vol at 215 atm
Total 340,473 kW 21.5 compression ratio
3 stages
2,590,625 scf/hr H2 at 369 max tube trailers/hr at this production & storage
10 atm
Electrolysis 200 HP H2 HP Hydrogen Gas in Tube Trailers
50,000 kg/hr O2 75.0% 63.5% kg/trailer dispenser at 165 atm pressure
Water electric LHV H2 60 300 750 Trailer fill-ups/d at
56,250 kg/hr efficiency efficiency min/fill-up kg/hr/dis 150,000 design kg/d H2 or gal/d
21 dispenser gasoline equivalent
theoretical power 39.37 kWh/kg H2 at 100% electric efficiency 135,000 actual kg/d annual ave.
actual power 52.49 kWh/kg or 4.73 kWh/Nm3 H2
at 0.75 kg CO2/kWh current U.S. average for all electricity = 255,355 kg/hr CO2 equivalent at power plants
40.9 kgCO2/kg H2
Unit cost basis at cost/size Unit cost at millions of $
Capital Costs 100,000 kg/d H2 factors 150,000 kg/d H2 for 1 plant Notes
Electrolyser $ 1,000 /kW 90% $ 960 /kW 315.0 $ 5.1 /scf/d H2
H2 Compressor $ 2,200 /kW 80% $ 2,029 /kW 25.1 $ 168 /kg/d H2
HP H2 gas storage $ 20 /gal phy vol 70% $ 18 /gal phy vol 19.0 $ 281 /kg of HP H2 gas storage
HP H2 gas dispenser $ 30,000 /dispenser 100% $ 30,000 /dispenser 0.6 $ 4 /kg/d dispenser design
Total process units 359.8
General Facilities 20% of process units 72.0 20-40% typical
Engineering Permitting & Startup 15% of process units 54.0 10-20% typical
Contingencies 10% of process units 36.0 10-20% typical, low after the first few
Working Capital, Land & Misc. 7% of process units 25.2 5-10% typical
U.S. Gulf Coast Capital Costs 546.9
Site specific factor 110% of US Gulf Coast costs Total Capital Costs $ 601.5
Unit Capital Costs of 9.67 /scf/d H2 or 4,010 /kg/d H2 or 4,010 /gal/d gaso equiv

million $/yr $/million $/1,000 $/kg H2 or


Hydrogen Costs at 90% ann load factor of 1 plant Btu LHV scf H2 $/gal gaso equiv Notes
Non-fuel Variable O&M 1.0% /yr of capital 6.015 1.07 0.29 0.12 0.5-1.5% typical
Oxygen byproduct $ (10) /ton O2 (3.942) (0.70) (0.19) (0.08) large amount could create min. value
Electricity $ 0.045 /kWh 120.793 21.54 5.91 2.45 $0.04-0.05/kWh industrial rate
Variable Operating Cost 122.866 21.91 6.02 2.49
Fixed Operating Cost 5.0% /yr of capital 30.077 5.36 1.47 0.61 4-7% typical for refining
Capital Charges 18% /yr of capital 108.276 19.31 5.30 2.20 20-25% typical for refining
Total HP Gas Hydrogen Costs from Electrolysis 261.219 46.58 12.79 5.30 including return on investment
plant gate still requires distribution

Note: if 12 hr/d at only $ 0.020 /kWh lower off-peak rate and


12 hr/d at $ 0.060 /kWh higher peak rate daily average rate is $ 0.040 /kWh
If only operated during low off-peak rates times would have low ann load factor & need more H2 storage
Assume Hydrogn Systems Electrolysis at 150 psig pressure, Norsk Hydro & Stuard systems are low pressure

Source SFA Pacific, Inc


Path C13
Central Hydrogen via Petroleum Residue Gasification, Shipped by Pipeline
Final Version June 2002 IHIG Confidential
Color codes variables via summary inputs key outputs

gasoline equivalent
1 Central Plant Design Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv
Size range kg/d H2 gal/d Btu/hr scf/d H2 MW t Assuming 90% annual load factor at
Maximum 900,000 900,000 4,268 373,050,000 1,251 actual H2 49,275,000 kg/y H2 /station or gal/y gaso equiv
This run 150,000 150,000 711 62,175,000 208 or 4,106,250 kg/month H2 or gal/mo. gaso equiv
Minimum 20,000 20,000 95 8,290,000 28 thereby 225,844 vehicles can be serviced at
32,263 fill-ups/d @ 4.2 kg or gal equiv/fill-up
Pet Residue Pitch residue CO shift or each vehicle fills up one a week
1,002 MM Btu/h LHV gasifier 801 MM Btu/hr cool & clean 15.5 kg CO2/kg H2
1,052 MM Btu/h HHV 80.0% hot raw syngas 5% 84,974 kg/hr CO2 + 33 ton/d sulfur
27,264 kg/hr LHV effic 50% CO/(H2+CO) syngas
PSA loses 40 MM Btu/hr PSA fuel gas
654 tons/d pitch 80 atm 60 MM Bur/h CO to H2 shifting LHV loses
5% sulfur 27,264 kg/hr O2 6,250 kg/hr H2
711 MM Btu/hr H2 71% overall effic residue to H2
2,590,625 scf/hr H2 @ 75 atm

Electric Power ASU Hydrogen in Gas Pipeline @ 75 atm


ASU 10,906 0.40
Misc. 5,210 kWh/kg O2 150,000 design kg/d H2 or gal/d
Total 16,116 kW 654 metric tons/d O2 gasoline equivalent
1.00 tons O2/ton dry feed 135,000 actual kg/d annual ave.
at 0.75 kg CO2/kWh current U.S. average for all electricity = 12,087 kg/hr CO2 equivalent at power plants

Unit cost basis at cost/size Unit cost at millions of $


Capital Costs 100,000 kg/d H2 factors
150,000 kg/d H2 for 1 plant Notes
Residue handling & prep $ 12 /kg/d residue 75%
$ 11 /kg/d residue 7.1
Texaco residue gasifiers $ 32 /kg/d residue 85%
$ 30 /kg/d residue 39.4 100% spare unit soot recycle
Air separation unit (ASU) $ 28 /kg/d oxygen 75%
$ 25 /kg/d oxygen 16.6 $ 1,518 /kW ASU power
CO shift, cool & cleanup $ 22 /kg/d CO2 75%
$ 20 /kg/d CO2 40.5 $ 0.7 /scf/d H2 MDEA & PSA
Sulfur recovery $ 330 /kg/d sulfur 80%
$ 304 /kg/d sulfur 10.0 lower unit cost that coal due to high S
Total process units 103.6
General Facilities 30% of process units 31.1 20-40% typical, SMR + 10%
Engineering Permitting & Startup 15% of process units 15.5 10-20% typical
Contingencies 10% of process units 10.4 10-20% typical, low after the first few
Working Capital, Land & Misc. 7% of process units 7.3 5-10% typical
U.S. Gulf Coast Capital Costs 167.8
Site specific factor 110% of US Gulf Coast costs Total Capital Costs 184.6
Unit Capital Costs 2.97 /scf/d H2 or 1,231 /kg/d H2 or 1,231 /gal/d gaso equiv

million $/yr $/million $/1,000 $/kg H2 or


Hydrogen Costs at 90% ann load factor of 1 plant Btu LHV scf H2 $/gal gaso equiv Notes
Variable Non-fuel O&M 1.0% /yr of capital 1.8 0.33 0.09 0.04 0.5-1.5% typical
Pitch $ 1.50 /MM Btu HHV 12.4 2.22 0.61 0.25 $1.00-2.00/MM Btu typical at refinery
Electricity $ 0.045 /kWh 5.7 1.02 0.28 0.12 $0.04-0.05/kWh industrial rate
Variable Operating Cost 20.0 3.57 0.98 0.41
Fixed Operating Cost 5.0% /yr of capital 9.2 1.65 0.45 0.19 4-7% typical for refining
Capital Charges 18% /yr of capital 33.2 5.93 1.63 0.67 20-25% typical for refining
Total Gaseous Hydrogen Costs from Residue 62.5 11.14 3.06 1.27 including return of investment
into pipelinestill requires distribution

note $ 57.88 /tonne pitch price from above $/MM Btu input at 17,500 Btu/lb HHV
$ 9.65 /barrel at 6.0 bbl/tonne

Source SFA Pacific, Inc


Path C15
Central Hydrogen via Coal Gasification, Shipped by High Pressure Gas Tube Trailers
Final Version June 2002 IHIG Confidential
Color codes variables via summary inputs key outputs

gasoline equivalent
1 Central Plant Design Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv
Size range kg/d H2 gal/d Btu/hr scf/d H2 MW t Assuming 90% annual load factor at
Maximum 1,000,000 1,000,000 4,742 414,500,000 1,389 actual H2 49,275,000 kg/y H2 /station or gal/y gaso equiv
This run 150,000 150,000 711 62,175,000 208 or 4,106,250 kg/month H2 or gal/mo. gaso equiv
Minimum 20,000 20,000 95 8,290,000 28 thereby 225,844 vehicles can be serviced at
32,263 fill-ups/d @ 4.2 kg or gal equiv/fill-up
21 ton/d sulfur or each vehicle fills up one a week
Coal Coal CO shift 12 hr high press H2 storage
1,108 MM Btu/h LHV gasifier 809 MM Btu/hr cool & clean 19.0 kg CO2/kg H2 75,000 kg liq H2 stor
1,141 MM Btu/h HHV 73.0% hot raw syngas 5% 118,626 kg/hr CO2 1,081,395 gal phy store
43,137 kg/hr @12,000 Btu/lb dry LHV effic 58% CO/(H2+CO) syngas
PSA loses 40 MM Btu/hr PSA fuel gas
1,035 tons/d dry bit coal 80 atm 70 MM Bur/h CO to H2 shifting LHV loses
2% sulfur 43,137 kg/hr O2 6,250 kg/hr H2
711 MM Btu/hr H2 64% overall effic coal to H2
2,590,625 scf/hr H2 @ 30 atm
200 HP H2 HP Hydrogen Gas in Tube Trailers
Electric Power ASU kg/trailer compress at 165 atm pressure
ASU 17,255 0.40 60 1.5 750 Trailer fill-ups/d at
H2 Liqu 9,375 kWh/kg O2 min/fill-up kWh/kg 150,000 design kg/d H2 or gal/d
Misc. 6,253 1,035 metric tons/d O2 215 atm press gasoline equivalent
Total 32,882 kW 1.00 tons O2/ton dry feed 2.7 compr ratio 135,000 actual kg/d annual ave.
21 dispenser
at 0.75 kg CO2/kWh current U.S. average for all electricity = 24,662 kg/hr CO2 equivalent at power plants

Unit cost basis at cost/size Unit cost at millions of $


Capital Costs 100,000 kg/d H2 factors150,000 kg/d H2 for 1 plant Notes
Coal handling & prep $ 20 /kg/d coal 75%
$ 18 /kg/d coal 18.7 solids & slurry prep
Texaco coal gasifers $ 25 /kg/d coal 85%
$ 24 /kg/d coal 48.7 100% spare unit direct quench
Air separation unit (ASU) $ 28 /kg/d oxygen 75%
$ 25 /kg/d oxygen 26.2 $ 1,518 /kW ASU power
CO shift, cool & cleanup $ 20 /kg/d CO2 75%
$ 18 /kg/d CO2 51.5 $ 0.8 /scf/d H2 MDEA & PSA
Sulfur recovery $ 400 /kg/d sulfur 80%
$ 369 /kg/d sulfur 7.6 O2 Claus & tailgas treat
H2 Compressor $ 2,000 /kWh 90%
$ 1,921 /kWh 18.0 $ 120 //kg/d H2
HP H2 gas storage $ 20 /gal phy vol 70%
$ 18 /gal phy vol 19.2 $ 255 /kg of HP H2 gas storage
HP H2 gas dispenser $ 30,000 /dispenser 100%
$ 30,000 /dispenser 0.6 $ 3 /kg/d dispenser design
Total process units 190.5
General Facilities 30% of process units 57.1 20-40% typical, SMR + 10%
Engineering Permitting & Startup 15% of process units 28.6 10-20% typical
Contingencies 10% of process units 19.0 10-20% typical, low after the first few
Working Capital, Land & Misc. 7% of process units 13.3 5-10% typical
U.S. Gulf Coast Capital Costs 308.6
Site specific factor 110% of US Gulf Coast costs Total Capital Costs 339.4
Unit Capital Costs 5.46 /scf/d H2 or 2,263 /kg/d H2 or 2,263 /gal/d gaso equiv

million $/yr $/million $/1,000 $/kg H2 or


Hydrogen Costs at 90% ann load factor of 1 plant Btu LHV scf H2 $/gal gaso equiv Notes
Variable Non-fuel O&M 1.0% /yr of capital 3.4 0.61 0.17 0.07 0.5-1.5% typical
Coal $ 1.10 /MM Btu HHV 9.9 1.76 0.48 0.20 $0.75-1.25/MM Btu typical
Electricity $ 0.045 /kWh 11.7 2.08 0.57 0.24 $0.04-0.05/kWh industrial rate
Variable Operating Cost 25.0 4.45 1.22 0.51
Fixed Operating Cost 5.0% /yr of capital 17.0 3.03 0.83 0.34 4-7% typical for refining
Capital Charges 18% /yr of capital 61.1 10.90 2.99 1.24 20-25% typical for refining
Total HP Gas Hydrogen Costs from Coal 103.0 18.37 5.04 2.09 including return of investment
plant gate still requires distribution

note $ 29.11 /tonne coal price from above $/MM Btu input at 12,000 Btu/lb HHV

Source SFA Pacific, Inc


Summary for Hydrogen Delivery Pathways
Final Version June 2002 IHIG Confidential

Inputs Boxed in yellow are the key input variables you must choose, current inputs are just an example

Hydrogen Production Inputs


Design hydrogen production 150,000 kg/d H2
Annual average load factor 90% /yr of design
Average distance to forecourt 150 km, key assumption for tube trailer & especially pipeline
Truck utilization 80%
Tube load 300 kg key imput for tube trailer
Tube pressure full 160 Atmosphere
Tube pressure (min) 30 Atmosphere
Pipeline 621,504 $/km
Gasoline sales/month/station 10,000 kg/month thereby supplying 411 stations
Fuel cost 1 $/gal

Capital Cost Buildup Inputs from process unit costs


General Facilities 20% 20-40% typical assume low for pipeline
Engineering, Permits & Startup 10% 10-20% typical assume low for pipeline
Contingencies 10% 10-20% typical, should be low after the first few
Working Capital, Land & Misc. 7% 5-10% typical
Site specific factor 110% of US Gulf Coast 90-130% typical; sales tax, labor rates & weather issues
Product Cost Buildup Inputs
Electricity cost 0.045 $/kwh $0.04-0.05/kWh typical industrial rate, see www.eia.doe.gov
Non-fuel Variable O&M 1.0% /yr of capital 0.5-1.5% typical but could be lower for pipeline
Fixed O&M Costs 5.0% /yr of capital 4-7% typical for refiners: labor, overhead, insurance, taxes, G&A
Capital Charges 18.0% /yr of capital 20-25%/yr CC typical for refiners & 14-20%/yr CC typical for utilities

Outputs 135,000 kg/d H2 that supports 226,032 FC vehicles 10,000 kg/month per station supports 411 stations
actual annual average 32,290 fill-ups/d if 1 fill-up/week @ 4.2 kg/fill-up with 329 kg/d H2
Operating Cost Product Costs
Capital Costs Fixed Variable including return on capital
Absolute Unit cost Unit cost Unit cost Unit cost Unit cost
Delivery Method $ millions $/scf/d H2 /kg/d H2 or $/kg H2 $/kg H2 $/kg H2
Liquid H2 via Tank Trucks 13.2 0.6 88.0 0.02 0.10 0.18
Gaseous H2 via Pipeline 603.0 29.5 4,019.9 0.61 0.61 2.94
Gaseous H2 via Tube Trailers 140.7 6.9 938.0 0.14 0.14 2.09
Click on specific Excel worksheet tabs below for details of cost buildups for each case
Source: SFA Pacific, Inc.
Liquid Hydrogen Distributed via Trucks
Final Version June 2002 IHIG Confidential

1 Central Plant Design Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv
Size range kg/d H2 gal/d Btu/hr scf/d H2 MW t Assuming 90% Annual average load factor
Maximum 1,000,000 1,000,000 4,742.186 414,500,000 1,389.448 actual H2 10,000 kg/month H2 or gal/mo. gaso equiv
This run 150,000 150,000 711.328 62,175,000 208.417 or 550 FC vehicles can be supported at
Minimum 20,000 20,000 94.844 8,290,000 27.789 thereby 78 fill-ups/d @ 4.2 kg or gal equiv/fill-up
411 station supported by this central faciltiy

Average delivery distance 150 km


Delivery distance 210 km 40% increase to represent physical distance
Truck utilization 80%

Capital costs Million $ Notes


Tank & undercarrage 11.2 $ 75 /kg/d H2
Cabe 2.0 $ 13 /kg/d H2
Total tube trailer cost 13.2

$/million $/kg H2 or
Variable Operating Cost Million $/yr Btu LHV $/k scf H2 $/gal gaso equiv
Labor 4.43 0.79 0.22 0.09
Fuel 0.54 0.10 0.03 0.01
Variable non-fuel O&M 1% /yr of capital 0.13 0.03 0.01 0.00 6,000 $/yr/truck
Total variable operating costs 5.10 0.91 0.25 0.10
Fixed Operating Cost 5% /yr of capital 0.66 0.12 0.03 0.02
Capital Charges 18% /yr of capital 2.38 0.42 0.12 0.06
Total operating costs 8.14 1.45 0.40 0.18

Assumptions
Truck costs
Tank unit 450,000 $/module 113 $/kg H2 stroage
Undercarrage 60,000 $/trailer
Cabe 90,000 $/cab
Truck boil-off rate 0.30 %/day
Truck capacity 4000 kg/truck
Fuel economy 6 mpg
Average speed 50 km/hr
Load/unload time 4 hr/trip could be lowered with a liquid H2 pump
Truck availability 24 hr/day
Hour/driver 12 hr/driver
Driver wage & benefits 28.75 $/hr
Fuel price 1 $/gal
Truck requirement calculations
Trips per year 12,319 34 trips per day
Total Distance 5,173,875 km/yr 235,176 km/yr per truck little high
Time for each trip 8.4 hr/trip
Trip length 12.4 hr/trip
Delivered product 48,658,030 kg/yr
Total delivery time 152,753 hr/yr
Total driving time 103,478 hr/yr
Total load/unload time 49,275 hr/yr
Truck availability 7008 hr/yr
Truck requirement 22 trucks
Driver time 3504 hr/yr
Drivers required 44 persons
Fuel usage 535,000 gal/yr

Source: SFA Pacific, Inc.


Gaseous Hydrogen Distributed via Pipeline
Final Version June 2002 IHIG Confidential

gasoline equivalent
55 mpg and 12,000 mile/yr
1 Central Plant Design Design LHV energy equivalent Assuming 218 kg/yr H2/vehicle or gal/yr gaso equiv
Hydrogen gasoline million requires 90% annual load factor at
Size range kg/d H2 gal/d Btu/hr scf/d H2 MW t Assuming 120,000 kg/y H2 /station or gal/y gaso equiv
Maximum 1,000,000 1,000,000 4,742 414,500,000 1,389 actual H2 10,000 kg/month H2 or gal/mo. gaso equiv
This run 150,000 150,000 711 62,175,000 208 or 550 vehicles can be serviced at
Minimum 20,000 20,000 95 8,290,000 28 thereby 78 fill-ups/d @ 4.2 kg or gal equiv/fill-up
411 station supported by this central faciltiy

Delivery distance 150 km key input


Number of arms 4 key input Radiate four directions or 600 km of total pipeline key issue
Delivery pressure 440 psia
Pipeline cost 621,504 $/km includes right of way costs which is the key cost issue in urban areas
Electricity cost 0.045 $/kwh if a booster compressor is required for long pipeline

Capital costs Million $


Pipeline 372.9
Capital cost 372.9
General Facilities & permitting 20% of unit cost 74.6 could be lower for pipelines
Eng. startup & contingencies 10% of unit cost 37.3
Contingencies 10% of unit cost 37.3
Working Capital, Land & Misc. 7% of unit cost 26.1 could be lower for pipelines
548.2
Location factor 110% of US Gulf Coast 603.0

$/million $/kg H2 or
Variable Operating Cost Million $/yr Btu LHV $/k scf H2 $/gal gaso equiv
Variable non-fuel O&M 1% /yr of capital 6.03 1.08 0.30 0.12 could be lower for pipelines
Total variable operating costs 6.03 1.08 0.30 0.12
Fixed Operating Cost 5% /yr of capital 30.15 5.38 1.48 0.61 could be lower for pipelines
Capital Charges 18% /yr of capital 108.54 19.35 5.31 2.20
Total operating costs 144.72 25.80 7.09 2.94

Source: SFA Pacific, Inc.


Gaseous Hydrogen Distributed via Tube Trailers
Final Version June 2002 IHIG Confidential

Design per station Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv
Size range kg/d H2 gal/d Btu/hr scf/d H2 MW t Assuming 90% Annual average load factor
Maximum 1,000,000 1,000,000 4,742.186 414,500,000 1,389.448 actual H2 10,000 kg/month H2 or gal/mo. gaso equiv
This run 150,000 150,000 711.328 62,175,000 208.417 or 550 FC vehicles can be supported at
Minimum 20,000 20,000 94.844 8,290,000 27.789 thereby 78 fill-ups/d @ 4.2 kg or gal equiv/fill-up
411 station supported by this central faciltiy

Average delivery distance 150 km


Delivery distance 210 km 40% increase to represent physical distance
Truck utilization 80%

Capital costs Million $ Notes


Tubes & undercarrage 113.7 $ 758 /kg/d H2, high due to the 411 units left at stations
Cabe 27.0 $ 180 /kg/d H2
Total tube trailer cost 140.7

$/million
Variable Operating Cost Million $/yr Btu LHV $/k scf H2 $/gal gaso equiv
Operating costs
Labor 60.44 10.78 2.96 1.23
Fuel 8.79 1.57 0.43 0.18
Variable non-fuel O&M 1% /yr of capital 1.41 0.25 0.07 0.03 4,690 $/yr/truck
Total variable operating costs 70.64 12.59 3.46 1.43
Fixed Operating Cost 5% /yr of capital 7.04 1.25 0.34 0.14
Capital Charges 18% /yr of capital 25.33 4.52 1.24 0.51
Total operating costs 103.00 18.36 5.04 2.09

Assumptions
Truck costs
Tube unit 100,000 $/module 333 $/kg H2 design stoage @ 160 atm
Undercarrage 60,000 $/trailer
Cabe 90,000 $/cab
Truck capacity 300 kg/truck key issue
Pressure (max) 160 atmosphere
Pressure (min) 30 atmosphere
Net delivery 244 kg/truck key issue
Fuel economy 6 mpg
Average speed 50 km/hr
Hour/driver 12 hr/driver
Load/unload time 2 hr/trip this could be lower as just change tube trailers at stations
Truck availability 24 hr/day
Driver wage & benefits 28.75 $/hr
Fuel price 1 $/gal
Tube trailer requirement calculations

Trips per year 202,100 trips/yr or 554 trips per day


Total distance 84,882,000 km/yr 282,940 km/yr per truck little high
Time for each trip 8.4 hr/trip
Total delivery time 2,101,840 hr/yr
Total driving time 1,697,640 hr/yr
Total load/unload time 404,200 hr/yr
Truck availability 7008 hr/yr
Truck & tube trailer requirement 300 trucks but 711 tube trailers due to 1 left at each station
Driver time, hr/yr 3504 hr/yr
Drivers required 600 persons
Fuel usage 8,790,000 gal/yr

Source: SFA Pacific, Inc.


Summary for Hydrogen Fueling Pathways
Final Version June 2002 IHIG Confidential

Inputs Boxed in yellow are the key input variables you must choose, current inputs are just an example

Hydrogen Production Inputs Notes


Design hydrogen production 150,000 kg/d H2 from central facility
Annual average load factor 90% /yr of design
Gasoline sales/month/station 10,000 kg/month thereyb supplying 411 stations
Forecourt loading factor 70% /yr of design "plug & play" 24 hr replacements for reasonable availability
High pressure gas storage buffer 3 hours at peak surge rate

Capital Cost Buildup Inputs from process unit costs


General Facilities 25%
Engineering, Permitting & Startup 10% Engineering costs spread over multiple stations
Contingencies 10%
Working Capital, Land & Misc. 7%
Product Cost Buildup Inputs
Road tax or (subsidy) $ - /gal gasoline equivalent may need subsidy like EtOH to get it going
Gas Station mark-up $ - /gal gasoline equivalent may be needed if H2 sales drops total station revenues
Electricity cost 0.07 $/kwh $0.06-.0.09/kWh typical commercial rate, see www.eia.doe.gov
Non-fuel Variable O&M 0.5% /yr of capital 0.5-1.5% is typical, assumed low here for "plug & play"
Fixed O&M Costs 3.0% /yr of capital 4-7% typicalfor insurance, taxes, G&A (may be low here)
Capital Charges 18.0% /yr of capital 20-25%/yr CC typical for refiners & 14-20%/yr CC for utilities
20%/yr CC is about 12% IRR DCF on 100% equity where as
15%/yr CC is about 12% IRR DCF on 50% equity & debt at 7%

Outputs 135,000 kg/d H2 that supports 226,032 FC vehicles 10,000 kg/month per station supports 411 stations
actual annual average 32,290 fill-ups/d if 1 fill-up/week @ 4.2 kg/fill-up each with 329 kg/d H2
Operating Cost Product Costs
Capital Costs Fixed Variable including return on capital
Absolute Unit cost Unit cost Unit cost Unit cost Unit cost
Delivery Method $ millions $/scf/d H2 /kg/d H2 or $/kg H2 $/kg H2 $/kg H2
Liquid H2 Gaseous Fueling System 279 13.64 1,857 0.17 0.08 1.27
Gaseous H2 via Pipeline 212 10.39 1,415 0.13 0.16 1.07
Gaseous H2 via Tube Trailer 212 10.39 1,415 0.13 0.09 1.00

Click on specific Excel worksheet tabs below for details of cost buildups for each case

Source: SFA Pacific, Inc.


Liquid Hydrogen Based Fueling Stations
Final Version June 2002 IHIG Confidential

Central hydrogen production 150,000 kg/d


Annual average load factor 90% /yr of design

Design per station Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv
Size range kg/d/station H2 gal/d Btu/hr scf/d H2 MW t Assuming 70% Forecourt loading factor
actual H2 10,000 kg/month H2 or gal/mo. gaso equiv
This run 470 470 2.227 194,699 0.653 or 550 FC vehicles can be supported at
thereby 78 fill-ups/d @ 4.2 kg or gal equiv/fill-up
one of 411 stations 329 kg/d H2 average consumption
at 4,000 kg/load require one tanker every 12 days

Electric Power 123 kg


22 kw 986 gal physical vol at 400 atm
Liquid H2 Liquid H2 Buffer 4.0 HP H2
Storage Pump Storage kg/ fill-up dispenser
12,264 0.8 3 5 48
gal maximuum kw/kg/hr hours min/fill-up kg/hr/dis
3,288.04 kg H2 max liqiid H2 sotrage at surge rate 20 kg/hr daily average design at 24 hr/d
7 Days of liquid H2 storage at design rate 3 times averge at peak surge rate
2 Dispensers
411 Fueling stations served
17 hour operation

Unit cost basis at cost/size Unit cost at


Capital Costs 1,000 kg/d H2 factors 470 kg/d H2 millions of $ Notes
Liquid H2 pump/vaporizer $ 250 /kg/d H2 70% $ 314 /kg/d H2 0.15 $ 314 /kg/d H2
Liquid H2 storage $ 10 /gal phy vol 70% $ 13 /gal phy vol 0.15 $ 47 /kg/d H2
H2 buffer storage $ 100 /gal phy vol 80% $ 116 /gal phy vol 0.11 $ 931 /kg/d H2
Liquid H2 dispenser $ 15,000 /dispenser 100% $ 15,000 /dispenser 0.03 $ 64 /kg/d dispenser design
Unit cost 0.45
General Facilities & permitting 25% of unit cost 0.11
Eng. startup & contingencies 10% of unit cost 0.04
Contingencies 10% of unit cost 0.04
Working Capital, Land & Misc. 7% of unit cost 0.03
Capital Costs 0.68 for 1 of 411 stations
Total Capital Costs 279 for all 411 stations

$/yr $/million $/kg H2 or


Hydrogen Costs at 70% ann load factor of 1 station Btu LHV $/k scf H2 $/gal gaso equiv
Road tax or (subsidy) $ - /gal gaso equiv. - - - - can be subsidy like EtOH
Gas Station mark-up $ - /gal gaso equiv. - - - - if H2 drops total station revenues
Variable Non-fuel O&M 0.5% /yr of capital 3,389 0.25 0.07 0.03 0.5-1.5 typical many be low here
Electricity $ 0.070 /kWh 6,721 0.49 0.14 0.06 0.06-0.09 typical commercial rates
Variable Operating Cost 10,110 0.74 0.20 0.08
Fixed Operating Cost 3.0% /yr of capital 20,333 1.49 0.41 0.17 3-5% typical, may be lower here
Capital Charges 18.0% /yr of capital 121,996 8.93 2.45 1.02 20-25% typical for refiners
Fueling Station Cost 152,438 11.16 3.06 1.27
including return of investment

Hydrogen Fueling Station Costs


Delivery to 411 Stations
Million $/yr
Variable Operating Cost 4.16
Fixed Operating Cost 8.36
Capital Charges 50.14
Total Fueling Station Cost 62.65

Source: SFA Pacific, Inc.


Gaseous Hydrogen Based Fueling Stations - Pipeline Delivery
Final Version June 2002 IHIG Confidential

Central hydrogen production 150,000 kg/d


Annual average load factor 90% /yr of design

Design per station Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv
Size range kg/d/station H2 gal/d Btu/hr scf/d H2 MW t Assuming 70% Forecourt loading factor
This run 470 470 2.227 194,677 0.653 or 10,000 kg/month H2 or gal/mo. gaso equiv
550 FC vehicles can be supported at
one of 411 stations 78 fill-ups/d @ 4.2 kg or gal equiv/fill-up
Electric Power
Commpress 56 kw
123 kg
986 gal physical vol at 400 atm
Hydrogen 4.0 HP H2
Pipeline Compressors Storage kg/ fill-up dispenser
2.0 3 5 48
kw/kg/h Hours min/fill-up kg/hr/dis
30 400 of daily ave rate 20 kg/hr daily average design at 24 hr/d
Atm Atm 3 times averge at peak surge rate
Smaller stations use cascade system 2 Dispensers
Larger stations use booster system 411 Fueling stations served
17 hour operation

Unit cost basis at cost/size Unit cost at millions of $


Capital Costs 1,000 kg/d H2 factors 470 kg/d H2 for 1 fueling station
H2 Compressors $ 3,000 /kwh 80% $ 3,490 /kg/d H2 0.20 $ 415 /kg/d H2
H2 buffer storage $ 100 /gal phy vol 80% $ 116 /gal phy vol 0.11 $ 931 /kg of HP H2 gas storage
Gaseous H2 dispenser $ 15,000 /dispenser 100% $ 15,000 /dispenser 0.03 $ 64 /kg/d dispenser design
Unit cost 0.34
General Facilities & permitting 25% 0.08
Eng. startup & contingencies 10% 0.03
Contingencies 10% 0.03
Working Capital, Land & Misc. 7% 0.02
Capital Costs 0.52 for 1 of 411 stations
Total Capital Costs 212 for all 411 stations

$/yr $/million $/kg H2 or


Hydrogen Costs at 70% ann load factor of 1 station Btu LHV $/k scf H2 $/gal gaso equiv
Road tax or (subsidy) $ - /gal gaso equiv. - - - - can be subsidy like EtOH
Gas Station mark-up $ - /gal gaso equiv. - - - - if H2 drops total station revenues
Variable Non-fuel O&M 0.5% /yr of capital 2,583 0.19 0.05 0.02 0.5-1.5 typical many be low here
Electricity $ 0.070 /kWh 16,800 1.23 0.34 0.14 0.06-0.09 typical commercial rates
Variable Operating Cost 19,383 1.42 0.39 0.16
Fixed Operating Cost 3.0% /yr of capital 15,496 1.13 0.31 0.13 3-5% typical, may be lower here
Capital Charges 18.0% /yr of capital 92,978 6.81 1.87 0.77 20-25% typical for refiners
Fueling Station Cost 127,857 9.36 2.57 1.07
including return of investment

Hydrogen Fueling Station Costs


Delivery to 411 Stations
Million $/yr
Variable Operating Cost 7.97
Fixed Operating Cost 6.37
Capital Charges 38.21
Total Fueling Station Cost 52.55

Source: SFA Pacific, Inc.


Gaseous Hydrogen Based Fueling Stations - Tube Trailer Delivery
Final Version June 2002 IHIG Confidential

Central hydrogen production 150,000 kg/d


Annual average load factor 90% /yr of design

Design per station Design LHV energy equivalent Assuming 55 mpg and 12,000 mile/yr
Hydrogen gasoline million requires 218 kg/yr H2/vehicle or gal/yr gaso equiv
Size range kg/d/station H2 gal/d Btu/hr scf/d H2 MW t Assuming 70% Forecourt loading factor
This run 470 470 2.227 194,677 0.653 or 10,000 kg/month H2 or gal/mo. gaso equiv
550 FC vehicles can be supported at
78 fill-ups/d @ 4.2 kg or gal equiv/fill-up
one of 411 stations 329 kg/d H2 average consumption
at 244 kg/load require one tanker every 0.74 days or 18 hours
Electric Power 123 kg
Commpress 56 kw 986 gal physical vol at 400 atm
Booster Hydrogen 4.0 HP H2
Tube trailer Compressors Storage kg/ fill-up dispenser
2 3 5 48
kw/kg/h Hours min/fill-up kg/hr/dis
30 to 160 atm 400 atm of daily ave rate 20 kg/hr daily average design at 24 hr/d
3 times averge at peak surge rate
2 Dispensers
411 Fueling stations dispensers
17 hour operation

Unit cost basis at cost/size Unit cost at


Capital Costs 1,000 kg/d H2 factors 470 kg/d H2 millions of $ Notes
Compressors $ 3,000 /kwh 80% $ 3,490 /kwh 0.20 $ 415 /kg/d H2
H2 buffer storage $ 100 /gal phy vol 80% $ 116 /gal phy vol 0.11 $ 931 /kg of HP H2 gas storage
Gaseous H2 dispenser $ 15,000 /dispenser 100% $ 15,000 /dispenser 0.03 $ 64 /kg/d dispenser design
0.34
General Facilities & permitting 25% of equipment cost 0.08
Eng. startup & contingencies 10% of equipment cost 0.03
Contingencies 10% of equipment cost 0.03
Working Capital, Land & Misc. 7% of equipment cost 0.02
Capital Costs 0.52 for 1 of 411 stations
Total Capital Costs 212 for all 411 stations

$/yr $/million $/kg H2 or


Hydrogen Costs at 70% ann load factorof 1 station
Btu LHV $/k scf H2 $/gal gaso equiv
Road tax or (subsidy) $ - /gal gaso equiv. - - - - can be subsidy like EtOH
Gas Station mark-up $ - /gal gaso equiv. - - - - if H2 drops total station revenues
Variable Non-fuel O&M 0.5% /yr of capital 2,583 0.19 0.05 0.02 0.5-1.5 typical many be low here
Electricity $ 0.070 /kWh 8,400 0.62 0.17 0.07 assume 50% of design power
Variable Operating Cost 10,983 0.80 0.22 0.09 due to tube pressrue
Fixed Operating Cost 3.0% /yr of capital 15,496 1.13 0.31 0.13 3-5% typical, may be lower here
Capital Charges 18.0% /yr of capital 92,978 6.81 1.87 0.77 20-25% typical for refiners
Fueling Station Cost 119,457 8.75 2.40 1.00
including return of investment

Hydrogen Fueling Station Costs


Delivery to 411 Stations
Million $/yr
Variable Operating Cost 4.51
Fixed Operating Cost 6.37
Capital Charges 38.21
Total Fueling Station Cost 49.10

Source: SFA Pacific, Inc.


Hydrogen Conversions
boxed yellow are key input variables Change below
Basis for any size
kg H2 1.000 10 100 1,000 10,000 2,413
Btu HHV 134,690 1,346,900 13,469,004 134,690,037 1,346,900,370 324,972,145
Btu LHV 113,812 1,138,125 11,381,248 113,812,475 1,138,124,750 274,600,000
H2 gas LHV/HHV 84.5% 84.5% 84.5% 84.5% 84.5% 84.5%
standard cubic feet (scf) @ 60°F & 1 atm 414.5 4,145 41,447 414,466 4,144,664 1,000,000
normal cubic meters (Nm3) @ 0°C & 1 atm 11.1 111 1,110 11,104 111,040 26,791
gallons @ standard conditions of 60°F & 1 atm 3,100 31,004 310,042 3,100,424 31,004,242 7,480,520
gallons gaseous H2 @ 400 atm & 60° F 8.53 85 853 8,526 85,262 20,571
gallons liquid H2 phy vol @ 2 atm & -430°F 3.73 37 373 3,733 37,330 9,007
kWh thermal equivalent LHV 33.3 333 3,335 33,347 333,468 80,457
Assumed gasoline Btu/gal HHV 121,335 121,335 121,335 121,335 121,335 121,335
Assumed gasoline LHV/HHV 93.8% 93.8% 93.8% 93.8% 93.8% 93.8%
Assumed gasoline Btu/gal LHV 113,812 113,812 113,812 113,812 113,812 113,812
gallons gasoline energy equiv LHV 1.000 10 100 1,000 10,000 2,413

Note: Essential to use LHV gasoline equivalent due to the 2.5 times larger water vapor energy losses of H2 vs gasoline

Source: SFA Pacific, Inc


Form Approved
REPORT DOCUMENTATION PAGE OMB NO. 0704-0188
Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources,
gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this
collection of information, including suggestions for reducing this burden, to Washington Headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson
Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of Management and Budget, Paperwork Reduction Project (0704-0188), Washington, DC 20503.
1. AGENCY USE ONLY (Leave blank) 2. REPORT DATE 3. REPORT TYPE AND DATES COVERED
November 2002 Subcontract Report, January 22, 2002 to July 22, 2002

4. TITLE AND SUBTITLE


5. FUNDING NUMBERS
Hydrogen Supply: Cost Estimate for Hydrogen Pathways—Scoping Analysis CF: ACL-2-32030-01
TA: FU232210
6. AUTHOR(S)
D. Simbeck and E. Chang

7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) 8. PERFORMING ORGANIZATION


SFA Pacific, Inc. REPORT NUMBER
Mountain View, CA

9. SPONSORING/MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSORING/MONITORING


National Renewable Energy Laboratory AGENCY REPORT NUMBER
1617 Cole Blvd.
Golden, CO 80401-3393 NREL/SR-540-32525

11. SUPPLEMENTARY NOTES

NREL Technical Monitor: Wendy Clark


12a. DISTRIBUTION/AVAILABILITY STATEMENT 12b. DISTRIBUTION CODE
National Technical Information Service
U.S. Department of Commerce
5285 Port Royal Road
Springfield, VA 22161
13. ABSTRACT (Maximum 200 words)
A report showing a comparative scooping economic analysis of 19 pathways for producing, handling, distributing, and
dispensing hydrogen for fuel cell vehicle applications.

15. NUMBER OF PAGES


14. SUBJECT TERMS
fuel cell, hydrogen, International Hydrogen Infrastructure Group, SFA
16. PRICE CODE

17. SECURITY CLASSIFICATION 18. SECURITY CLASSIFICATION 19. SECURITY CLASSIFICATION 20. LIMITATION OF ABSTRACT
OF REPORT OF THIS PAGE OF ABSTRACT
Unclassified Unclassified Unclassified UL

NSN 7540-01-280-5500 Standard Form 298 (Rev. 2-89)


Prescribed by ANSI Std. Z39-18
298-102

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