A Methodology for Fueling Mobility Markets with Hydrogen from Natural Gas plus Carbon Capture and Sequestration

Abstract

Fuel cell electric vehicles utilizing hydrogen are one option for reducing emissions in the transportation sector. Future hydrogen demand for the mobility markets will be partially dependent on the evolution of state and national policies and incentives. Hydrogen from natural gas plus carbon capture and sequestration (SMR-CCS) is one pathway for manufacturing hydrogen without significant carbon dioxide (CO2) emissions. This paper describes a methodology for assessing hydrogen market demand, CO2 storage options, community impacts (air quality and community vulnerability/environmental justice concerns), land ownership and technoeconomics for the mobility market in northern California, but has application globally. Our analysis indicates that a single facility with 250 t/day hydrogen generation capacity would provide enough hydrogen to supply the Bay Area and Sacramento regions of California in a mid-case demand scenario. With existing federal and state incentives, we estimate the levelized cost of hydrogen from natural gas plus carbon capture and sequestration to be $0.13 per kg (highly dependent on California Low Carbon Fuel Standard credit assumed to be $100/ton CO2), which is competitive with grey hydrogen that averages $0.65 /kg in California. In addition, 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. The primary barrier to CCS projects in California continues to be the regulatory framework. Further work with key stakeholders, including state and federal legislators, is needed to enhance the commercial attributes of CCS projects and public acceptance of such projects. 

A Methodology for Fueling Mobility Markets with Hydrogen from Natural Gas plus Carbon Capture and Sequestration