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The Future of Hydrogen Chapter 2: Producing hydrogen and hydrogen-based products Technology options The high CO2 emissions intensity of coal-based hydrogen means that carbon capture technology will need to be used if hydrogen from coal is to have a future in a low-carbon energy system. The use of CCUS brings some challenges: coal produces hydrogen with a relatively low hydrogen-to-carbon ratio (hydrogen to carbon ratio 0f 0.1:1 from coal vs. 4:1 from methane) and brings with it a high level of impurities in the feedstock (sulphur, nitrogen and minerals) (Muradov, 2017). The synthesis gas obtained from the gasification of coal could be used to fuel a combined- cycle power plant and – assuming the coal gasification plant was equipped with CCUS – the electricity it generated would count as low carbon. If an additional water-gas-shift (WGS) unit could be added, the synthesis gas could also be used to produce more hydrogen, allowing the coal gasification plant to shift between the production of electricity and hydrogen according to which is more profitable. Currently, however, there are no large- scale commercial units producing both hydrogen and electricity. The performance of individual CO2 capture technologies and methods for integrating them differ in terms of CO2 removal rate as well as hydrogen and CO2 purity levels. Hydrogen purity requirements vary strongly by end-use application. While most fuel cells require high purity levels, lower levels suffice for gas turbines, refinery processes and industrial boilers. Few technologies exist that produce both high-purity hydrogen and CO2 that is pure enough for other uses or storage, since gas separation technologies focus on either hydrogen removal or CO2 removal. The optimal combination of hydrogen production route and capture technology therefore depends on what the hydrogen is going to be used for, as well as on the production costs. The vast majority of hydrogen production from coal currently takes place in China using coal gasification, mainly to produce ammonia. China is exploring the role of hydrogen in its economy, and using coal is currently the cheapest way of producing it, with costs amounting to RMB 0.6–0.7/m3 (about USD 1/kgH2). CHN Energy, China’s largest power company, is also the world's largest hydrogen production company. Its 80 coal gasifiers can produce around 8MtH2/yr, which is equivalent to 12% of global dedicated hydrogen production today. Using coal with CCUS currently looks likely to be the lowest-cost way of producing cleaner hydrogen in China, but current technologies enable a CO2 intensity only as low as 2 kilograms of carbon dioxide per kilogram of hydrogen (kgCO2/kgH2) while advanced technologies may permit this to reach as low as 0.4 kgCO2/kgH2 (Figure 15). In Australia the Hydrogen Energy Supply Chain (HESC) Latrobe Valley project is seeking to produce hydrogen from lignite using high-pressure partial oxidation. The related CarbonNet Carbon Capture and Storage Project presents a potential solution for mitigating CO2 separated from the hydrogen production process in the commercial phase. The hydrogen produced would be liquefied and exported to Japan. The first step is a one-year pilot project to treat 160 tonnes of lignite to produce 3 tH2. Costs of hydrogen production from coal CAPEX requirements account for around 50% of the cost of producing hydrogen from coal, and fuel accounts for a further 15–20% (Figure 15). The availability and cost of coal therefore plays an important role in determining the viability of coal-based hydrogen projects. PAGE | 50 IEA. All rights reserved.PDF Image | The Future of Hydrogen 2019
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