The Future of Hydrogen 2019

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The Future of Hydrogen Chapter 2: Producing hydrogen and hydrogen-based products Figure 8. 0.5 MtH2/yr between them. There are several ways in which CO2 capture can take place at an SMR plant. CO2 can be separated from the high-pressure synthesis gas stream, reducing emissions by up to 60% (Figure 8). This typically costs around USD 53 per tonne of carbon dioxide (tCO2) for merchant plants (that is, plants where hydrogen production is not integrated with the production of ammonia or methanol), based on current natural gas prices in Europe. CO2 can also be captured from the more diluted furnace flue gas. This can boost the level of overall emission reduction to 90% or more, but it also increases costs to around USD 80/tCO2 in merchant plants, and to USD 90–115/tCO2 in integrated ammonia/urea and methanol plants, which have more diluted CO2 streams (see IEAGHG, 2017a and 2017b). Production process of hydrogen from gas with CCUS Source: IEAGHG (2017a), “Reference data and supporting literature reviews for SMR based hydrogen production with CCS”. CCUS is crucial to decarbonising the large SMR fleet in operation today. ATR is an alternative technology in which the required heat is produced in the reformer itself. This means that all the CO2 is produced inside the reactor, which allows for higher CO2 recovery rates than can be achieved with SMR. ATR also allows for the capture of emissions at lower cost than SMR because the emissions are more concentrated. A number of studies have shown that the costs of SMR with capture rates exceeding 90% are higher than that of a comparable ATR system (H21, 2018). A large share of global ammonia and methanol production already combines SMR with ATR technology, and the announced HyNet and H21 projects in the United Kingdom have plans to use ATR with CCUS instead of SMR. Other options for using natural gas to produce hydrogen exist, but are still only at either demonstration or laboratory scale today (Box 3). PAGE | 40 IEA. All rights reserved.

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