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The Future of Hydrogen Chapter 2: Producing hydrogen and hydrogen-based products Figure 14. Dedicated electricity generation from renewables or nuclear power offers an alternative to the use of grid electricity for hydrogen production. With declining costs for solar PV and wind generation, building electrolysers at locations with excellent renewable resource conditions could become a low-cost supply option for hydrogen, even after taking into account the transmission and distribution costs of transporting hydrogen from (often remote) renewables locations to the end users, as discussed in Chapter 3. Promising areas exist, for example, in Patagonia, New Zealand, Northern Africa, the Middle East, Mongolia, most of Australia, and parts of China and the United States (Figure 14). The Asian Renewable Energy Hub project site in Western Australia aims to build 7.5 gigawatts (GW) of wind generation and 3.5 GW of solar generation, with around 8 GW of the generation being dedicated to hydrogen production for domestic use and for export (Asian Renewable Energy Hub, 2019). Several other projects to produce hydrogen from dedicated renewable resources in various parts of the world are in preparation or have been announced. In areas where both resources are excellent, combining solar PV and onshore wind in a hybrid plant has the potential to lower costs further. Hydrogen costs from hybrid solar PV and onshore wind systems in the long term Notes: This map is without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. Electrolyser CAPEX = USD 450/kWe, efficiency (LHV) = 74%; solar PV CAPEX and onshore wind CAPEX = between USD 400–1 000/kW and USD 900–2 500/kW depending on the region; discount rate = 8%. Source: IEA analysis based on wind data from Rife et al. (2014), NCAR Global Climate Four-Dimensional Data Assimilation (CFDDA) Hourly 40 km Reanalysis and solar data from renewables.ninja (2019). The declining costs of solar PV and wind could make them a low-cost source for hydrogen production in regions with favourable resource conditions. Hydrogen from coal Hydrogen production from coal using gasification is a well-established technology, used for many decades by the chemical and fertiliser industries for the production of ammonia (especially in China). Globally around 130 coal gasification plants in operation, more than 80% of which are in China. Hydrogen production using coal produces CO2 emissions of about 19 tCO2/tH2, which is twice as much as natural gas. PAGE | 49 IEA. All rights reserved.PDF Image | The Future of Hydrogen 2019
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