SCCS and NGI recently completed a joint study entitled Fueling the California Mobility Market with Hydrogen from Natural Gas plus Carbon Capture and Sequestration.
Key findings include:
Based on subsurface criteria, community impact analysis, and land ownership status, 7 sites in northern California appear to be feasible prospects for a collocated SMR-CCS new build facility.
Future hydrogen demand for the mobility markets in California will be dependent on the evolution of state policy and incentives. Our analysis indicates that a facility with 250 metric ton per day capacity would be appropriate to meet the mid demand scenario.
With existing federal and state incentives (45Q and LCFS), we estimate the levelized cost of blue hydrogen (SMR-CCS) to be $1.79 per kg which is competitive with grey hydrogen.
The primary barrier to CCS projects in California continues to be the regulatory framework. Further work with key stakeholders including legislators in Sacramento is needed to enhance commercial attributes of CCS projects and public acceptance.
