INFINITY TURBINE LLC We specialize in designs, plans, licensing, consulting, design services, and surplus spare parts. We no longer manufacture turbines or CO2 systems. More Info...
TEL: +1-608-238-6001 (Chicago Time Zone ) USA
Email: greg@infinityturbine.com
The Six-Year Wall: Why AI Data Centers Can't Get Power— And Who Just Cracked the Problem Hyperscalers are racing to deploy gigawatts of AI compute, but the grid can't keep up and large gas turbines are backordered half a decade out. Infinity Turbine's Cluster Mesh Supercritical CO₂ system offers a radical alternative: modular, silent, trailer-deployable prime power that scales the way software does... More Info
Data Center 40 MW to 100 MW Using IT1000 Supercritical CO2 Gas Turbine Generator Silent Prime Power 1 MW (natural gas, solar thermal, thermal battery heat) ... More Info
Developing Rack Prime Power DC for AI Server Racks Sidecar 48V to 800V DC plus DC buffer for hyperscalers... More Info
The Shift from AC to DC Power Production for AI Data Centers AI data centers are pushing electrical infrastructure to its limits. The traditional AC power chain is no longer optimal for GPU-driven workloads. A DC-native architecture using Infinity Turbine’s Cluster Mesh system offers a path to higher efficiency, lower costs, and scalable modular power—potentially saving tens of millions per year at hyperscale... More Info
SMR and Cluster Mesh Supercritical CO2 Power System for Data Centers and AI Pairing Cluster Mesh Supercritical CO2 Power System with Small Modular Reactors enables hyperscalers to convert high-grade nuclear heat into ultra-efficient, dispatchable power with a compact, modular footprint tailored for AI-scale demand. More Info
ORC and Products Index Infinity Turbine ORC Index... More Info
________________________________________________________________________________
|
Assessing Green Hydrogen Production Power, Natural Gas Displacement, O₂ Value, and IRS Credit Potential IntroductionTo assess the financial viability of producing green hydrogen (and claiming the IRS credit), it is helpful to run through a back-of-envelope engineering and economic model. Below I walk through the key conversions and assumptions you’d need, estimate the magnitude of savings from displacing natural gas (NG) in a steel heat-treating facility, and estimate the possible credit from the IRS.Electrolysis: Power Required and O₂ ProductionTheoretical and practical energy need for H₂ The thermodynamic (ideal) enthalpy input required to split water into H₂ and O₂ corresponds to about 39.4 kWh per kg H₂ (based on 141.9 MJ/kg HHV) ([National Academies Press][1]) In practice, due to inefficiencies, real electrolyzers consume more. Many commercial systems today operate in the range of 50 to 55 kWh per kg H₂ ([Hydrogen Program][2]) Some advanced systems or pilot units claim somewhat lower consumption (e.g. ~ 37–42 kWh/kg) under favorable conditions, but that is optimistic and may exclude balance-of-plant losses. ([Bloom Energy][3]) Thus, a reasonable assumption for a full-system baseline is ~ 50 kWh per kg H₂ (or in a well-optimized plant perhaps slightly lower).Hence, for each kg H₂ produced, you’d need on the order of 50 kWh of electricity from solar PV (or other source).Mass of O₂ producedFrom the balanced reaction:[ 2 H₂O → 2 H₂ + O₂ ]Molecular weights: H₂O: 18, H₂: 2, O₂: 32.For every 2 moles (≈36 g) of water, you get 2 moles (≈4 g) hydrogen and 1 mole (≈32 g) oxygen.Thus, per mass of hydrogen: If you produce 1 kg (1000 g) of H₂, that's 500 moles of H₂. That came from 500 moles of water input (each yields one H₂ and ½ O₂). The corresponding O₂ is 250 moles, i.e. 250 × 32 = 8,000 g = 8 kg of O₂.In short: 1 kg H₂ yields about 8 kg O₂ (assuming pure separation, ideal stoichiometry).---Energy Content and NG DisplacementEnergy content of hydrogenUsing the higher heating value (HHV) of hydrogen, 1 kg H₂ contains ~ 141.9 MJ, which is ~ 39.4 kWh equivalent energy content. ([National Academies Press][1])If one uses the lower heating value (LHV), it is ~ 120.1 MJ or ~ 33.3 kWh. ([National Academies Press][1])For combustion or heating, typically the LHV is more relevant (since water remains vapor). So 1 kg H₂ yields ~ 120 MJ = ~ 33.3 kWh of useful heat.How much natural gas can you displace?This depends on the efficiency of combustion and how you integrate hydrogen into the process. If one assumed you used H₂ purely as a fuel, 1 kg H₂ would displace an equivalent energy of NG. Natural gas heating value is around 50–55 MJ/kg (or ~ 13.9–15.3 kWh/kg) depending on composition. ([World Nuclear Association][4])But because hydrogen is more energetic per kg, you need less mass of NG to deliver the same heat. A rough calculation: Suppose NG LHV ~ 50 MJ/kg (about ~13.9 kWh/kg). 120 MJ from 1 kg H₂ / 50 MJ per kg NG = 2.4 kg of NG displaced (in ideal equivalence) In terms of volume: natural gas density ~ 0.8 kg/m³ (depending on conditions), so you'd displace something like ~3 m³ NG, but this is rough.However, in a real furnace or heating application, there are combustion inefficiencies, flame dynamics, mixing, and you may not substitute hydrogen on a one-to-one energy basis. So practical displacement might be lower (say 70–90 % of the theoretical).You can also co-fire hydrogen with NG (i.e., mix H₂ and NG) to enhance combustion or raise flame temperature, but flame stability must be managed.So yes, you can mix hydrogen with NG, provided burner design and flame stability allow it and safety controls are in place. Many industrial furnaces can accept a hydrogen/NG blend up to some percentage before flame shape or NOₓ issues arise.---Economic Savings from Displacing NG (Illinois / Chicago Region)Let’s estimate the value of displaced NG in a simple model. Industrial natural gas price: industrial/commercial rates can vary, but for illustration, suppose $6 per MMBtu (this is just an example; adjust for actual local industrial NG pricing). 1 MMBtu = 1,055,056 Btu = 293.1 kWh (approx). 1 kg H₂ yields ~120 MJ = ~113,000 Btu (since 1 MJ = 947.8 Btu). Actually 120 MJ = 113,736 Btu. So 1 kg H₂ ≈ 0.1137 MMBtu equivalent heat.If NG costs $6 per MMBtu, then the value of the replaced energy is 0.1137 × $6 = $0.68 in NG cost (if 100% efficient substitution).If generation of that 1 kg H₂ costs electricity, the NP savings is (NG cost saved) minus (electricity cost to make the hydrogen) and any other costs.You also get the IRS credit, which we compute next.IRS Credit EstimateYou quoted: IRS amount = $0.60 per kg H₂, multiplied by an applicable percentage (20–100 % depending on lifecycle emissions), possibly increased further if a prevailing wage and apprenticeship (PWA) requirement is met.So for 1 kg H₂: Base credit = $0.60 If your hydrogen qualifies at 100 % (best-case scenario), then the credit is $0.60 per kg. If lifecycle emissions only allow you, say 60 % credit, then it is $0.36 per kg. If you meet PWA, perhaps there's a multiplier or boost (you’d need to check IRS guidance).Thus, for each kg of hydrogen you produce and apply, you might capture $0.60 (or a fraction thereof) as a tax credit.Given the electricity cost and NG displacement, you’d compare: Cost to produce 1 kg H₂ via PV + electrolyzer Benefit from NG displacement IRS credit incrementLet’s do a stylized example: Electricity cost (from solar or grid) = $0.05 per kWh Electrolyzer consumption = 50 kWh/kg Electricity cost = 50 × $0.05 = $2.50 per kg H₂ Displaced NG value = $0.68 (from above) IRS credit (if full 100 %) = $0.60Net margin = 0.68 + 0.60 – 2.50 = −$1.22 (i.e. still a loss)In practice, to be profitable you'd need lower electricity cost or higher NG price or further credit incentives.If electricity cost were $0.02/kWh (e.g., very low cost solar), then cost = 50 × $0.02 = $1.00. Net margin = 0.68 + 0.60 – 1.00 = +$0.28 per kg, which becomes positive.Of course these are rough numbers; actual industrial NG rates, power tariffs, capacity factors, and operational efficiencies matter.If your facility burns, say, 10,000 MMBtu of NG annually, replacing even a fraction with hydrogen could yield meaningful savings. You’d scale from per-kg basis.---Value of the O₂ ProducedSince the electrolyzer co-produces O₂ (~ 8 kg per kg H₂), you might reuse or sell that O₂. Bulk industrial oxygen price in the U.S. is reported as ~ USD 221 per metric ton (i.e. $0.221 per kg) as of 2023 Q4. ([IMARC Group][5]) Some sources show oxygen at ~ $0.11 per kg in North America as a quoted industrial price. ([businessanalytiq][6]) Also, generating your own oxygen (via on-site high-volume oxygen systems) is sometimes claimed to cost ~ 7–10 cents per kg (i.e. $0.07 to $0.10) in energy and system cost. ([High Volume Oxygen][7])If you assume a conservative value of $0.10 per kg O₂, then 8 kg O₂ corresponds to $0.80 value of O₂ per kg H₂. That is not negligible—if you can purify and compress the O₂, you might offset part of your production cost.However, capturing, compressing, purifying, and delivering O₂ adds capital and operational costs, so the net value is lower. So you might conservatively credit $0.30–$0.50 per kg H₂ from O₂ by-product value in a good scenario.---Summary and ObservationsHere’s a tabular summary of nominal figures (for 1 kg H₂) under baseline assumptions:| Quantity / Parameter | Estimate / Value || ---------------------------------------------------• | ---------------------------------------------• || Electricity consumption | ~ 50 kWh per kg H₂ || Electricity cost (@ $0.05/kWh) | $2.50 || Heat energy from H₂ (LHV) | ~ 120 MJ ≈ 113,700 Btu || Equivalent NG displaced | ~0.1137 MMBtu ≈ $0.68 (if NG = $6/MMBtu) || IRS base credit (100 % eligible) | $0.60 || O₂ byproduct produced | ~ 8 kg O₂ || Value of O₂ (at $0.10/kg) | $0.80 || Rough net (displacement + credit + O₂ − electricity) | 0.68 + 0.60 + 0.80 − 2.50 = $0. (positive) |In that optimistic scenario you break even. But to be more realistic: Electricity will often cost more (or the solar capital amortization adds cost) O₂ purity, compression, and delivery costs reduce the realized value NG displacement might be less than full (if burner inefficiencies) The IRS credit might be a fraction (say 60 %) rather than full 100 % There are capital, maintenance, balance-of-plant, and storage costs not includedThus, in many realistic cases, green hydrogen may not yet be cheaper than NG, absent credit incentives and very low-cost renewable electricity. But the tax credit helps bridge the gap.Also, mixing hydrogen with natural gas is ordinarily feasible but must be carefully done with combustion control and burner design. The oxygen produced can be an added monetizable benefit if your facility has demand for it (e.g. for oxy-fuel burning, oxidation, or other.[1]: https://nap.nationalacademies.org/read/10922/chapter/21 Appendix H: Useful Conversions and Thermodynamic Properties[2]: https://www.hydrogen.energy.gov/docs/hydrogenprogramlibraries/pdfs/24005-clean-hydrogen-production-cost-pem-electrolyzer.pdf [PDF] Clean Hydrogen Production Cost Scenarios with PEM Electrolyzer ...[3]: https://www.bloomenergy.com/bloomelectrolyzer/ An Efficient Electrolyzer for Clean Hydrogen • Bloom Energy[4]: https://world-nuclear.org/information-library/facts-and-figures/heat-values-of-various-fuelscom Heat Values of Various Fuels • World Nuclear Association[5]: https://www.imarcgroup.com/bulk-oxygen-pricing-report Bulk Oxygen Prices, Chart, News, Demand and Forecast[6]: https://businessanalytiq.com/procurementanalytics/index/oxygen-price-index/ Oxygen price index • businessanalytiq[7]: https://highvolumeoxygen.com/how-much-does-oxygen-cost/ How much does oxygen cost? |
| CONTACT TEL: +1-608-238-6001 (Chicago Time Zone USA) Email: greg@infinityturbine.com | AMP | PDF |