Inexperienced hydrogen tasks might be worthwhile in “broad swaths” of the US, supported by new federal tax credit for clear hydrogen, based on a monetary modeling evaluation of the consultancy. within the Power Innovation coverage.
From pv journal USA
Only a few months after the passing of federal Inflation Discount Act (IRA), energy plant owner-operator AES Company and industrial gases firm Air Merchandise introduced a $4 billion three way partnership to construct, personal and function a inexperienced hydrogen manufacturing facility Texas with 1.4 GW of photo voltaic and wind capability, which is able to qualify for clear hydrogen manufacturing tax credit score below part 45V of the IRA.
The venture, to provide 200 metric tons of inexperienced hydrogen per day, is “financially viable” even and not using a grid connection, coverage consultancy Power Innovation stated in a report.
To determine different places the place inexperienced hydrogen manufacturing might be worthwhile, Power Innovation modeled the economics of the venture and located that in areas with “sturdy” wind assets and “first rate” wind assets photo voltaic, these tasks are “financially viable from the beginning.”
The report’s broader focus is an argument for “sensible design” of the part 45V manufacturing tax credit score for clear hydrogen, to make sure that it promotes each low emissions and clear progress. hydrogen business.
The report mentions three sorts of clear hydrogen venture design that the authors suggest to qualify for the tax credit score, by matching the renewable technology each hour to the electrical energy consumption of the electrolyzers.
Electrolyzers use electrical energy to separate water molecules into hydrogen and oxygen. The US Treasury is at the moment formulating rules to specify the necessities to qualify for the part 45V tax credit score.
The best venture design mentioned within the report will solely use on-site renewable energy, as proven on the left within the close by picture. The report additionally describes “export-only” tasks that may promote extra renewable energy to the grid and, in instances of excessive market electrical energy costs, flip off the electrolyzer plant and promote all of the grid energy. The third configuration of the venture, “indifferent,” will use grid energy and might match its hourly electrical energy use to hourly accounting for the emission price from grid energy.
For its monetary evaluation, Power Innovation fashions export-only tasks with “massive” wind and photo voltaic capability relative to the capability of the electrolyzer plant. Oversizing the renewable technology will enhance using the electrolyzer plant, as proven within the close by picture. The determine additionally exhibits the gross sales of exported electrical energy in instances of extra technology and when the electrical energy market value is at a “premium.”
“Broad components of the US” can help worthwhile inexperienced hydrogen manufacturing, the report says, the place the price of energy from new wind and photo voltaic capability averages under $25/MWh, as proven on the close by map.
Power Innovation map of hydrogen manufacturing in the US.
For the three places proven with stars on the map, Power Innovation fashions venture funds for an export-only inexperienced hydrogen plant. Most worthwhile is the West Texas location, which achieves a revenue of $143 per kW of electrolyzer capability per yr, by working a 1 MW electrolyzer plant with 3 MW of photo voltaic and a couple of MW of wind. The following most worthwhile is a location close to Houston, with revenues of $85 per kW/yr utilizing larger ranges of photo voltaic and wind capability, adopted by a southwest Minnesota location with revenues of $61 per kW/yr. yr utilizing 2 MW of photo voltaic and 4 MW of wind.
Power Innovation estimates the electrolyzer capital value at $1,400 per kW. Revenues will embrace hydrogen income of $1/kg, along with IRA tax credit score manufacturing and electrical energy gross sales. The price of water was not an element within the evaluation. At every location, about half of the electrical energy generated shall be bought to the grid. The necessity for an export-only hydrogen plant to hook up with the ability grid, the report says, is a “course of which will contain excessive prices, delays, and common uncertainty.”
As electrolyzer capital prices proceed to say no, inexperienced hydrogen tasks will turn out to be economical in lots of places over time, the report stated. If prices drop to the purpose that electrolyzers have to run solely 20% to 30% of the time to make a revenue, “solar-only tasks shall be viable.” The report says that “this can be a fascinating long-term end result,” as a result of electrolyzers that solely run at “very low-cost hours will assist combine a better share of renewable vitality into the grid .”
To allow using hydrogen for seasonal storage of renewable energy, Mitsubishi Energy Americas and Magnum Growth LLC added 300 GWh of hydrogen storage capability in salt domes close to the Intermountain Energy Challenge in Utah, which sells electrical energy of the Los Angeles municipal utility.
Present industrial makes use of of hydrogen embrace ammonia manufacturing, principally for fertilizer, and oil refining. Ammonia can be used as a delivery gas. The Inexperienced Hydrogen Coalition says inexperienced hydrogen may decarbonize metal and cement manufacturing.
This content material is protected by copyright and might not be reused. If you wish to cooperate with us and wish to reuse a few of our content material, please contact: editors@pv-magazine.com.
