Hydrogen energy storage investment estimates

Does energy storage reduce the cost of hydrogen generation?

As for all energy systems, this would require energy storage to alleviate the supply and demand disparity within the energy value chain. Despite a great deal of effort to reduce the cost of hydrogen generation, there has been relatively little attention paid to the cost of hydrogen storage.

Why is energy consumption important for a hydrogen storage system?

Energy consumption is crucial for the levelized cost of the hydrogen storage system as there is a significant cost incurred for the energy demand during the (dis)charging process of hydrogen storage, which increases the OpEx.

What is the biggest cost component of hydrogen production?

Fuel costs are the largest cost component, accounting for between 45% and 75% of production costs. Low gas prices in the Middle East, Russia and North America give rise to some of the lowest hydrogen production costs.

How much does hydrogen cost?

Combined with the expected drop in the cost of renewable energy, this can bring the cost of renewable-based hydrogen down to a range fo USD 1.3-4.5/kg H 2 (equivalent to USD 39-135/MWh).

What are the capital costs for hydrogen systems?

The capital costs for hydrogen systems, along with EPC and O&M costs, are project-specific and can vary substantially. Bidirectional usage for hydrogen is not limited to electricity generation by fuel cells; gas turbines or engines can also be used.

How much does green hydrogen cost?

On the other hand, globally, most green hydrogen is produced by low-carbon electricity primarily based on intermittent solar and wind, and the average levelized cost of hydrogen production ranges from ∼$3.2 to ∼$7.7 per kg of H 2. Thus, the storage costs are much higher than the generation cost for long-term storage.