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The Future of Hydrogen Chapter 2: Producing hydrogen and hydrogen-based products Figure 15. Hydrogen production costs in China today 7 6 5 4 3 2 15 00 Grid electricity Renewable Natural gas Natural gas Coal Coal with electricity with CCUS CCUS 35 30 25 Fuel costs 20 15 10 OPEX CAPEX CO2 intensity Notes: CAPEX of coal with CCUS = USD 1 475/kWH2. Renewable electricity costs = USD 30/MWh at 4 000 full load hours. More information on the underlying assumptions is available at www.iea.org/hydrogen2019. Source: IEA 2019. All rights reserved. Coal-based hydrogen with CCUS is likely to remain the lowest-cost clean hydrogen production route in China for the near term. Reducing the carbon footprint will be a critical factor for the prospects of coal-based hydrogen in a low-carbon context. Adding CCUS to coal-based hydrogen production is expected to increase CAPEX and fuel costs by 5% and OPEX by 130%. In China and India, with their established coal mining infrastructure and the lack of availability of cheap domestic natural gas, coal-based hydrogen equipped with CCUS is likely to be at least in the medium term the cheapest option for clean hydrogen production. Hydrogen from biomass Hydrogen can be produced from biomass in different ways. In biochemical routes, microorganisms work on organic material to produce biogas (a process referred to as anaerobic digestion) or a combination of acids, alcohols and gases (fermentation). Thermochemical gasification of biomass is a process that works much like coal gasification to convert biomass to a mix of carbon monoxide, CO2, hydrogen and methane. Anaerobic digestion to produce biogas is the most technically mature of these processes, but can only process sewage sludge, agricultural, food processing and household waste, and some energy crops. Fermentation can process the non-edible cellulosic part of some plants. Gasification could potentially convert all organic matter, and in particular the lignin component of biomass. Although there are a number of biomass gasification demonstration plants in the world, the technology is not yet fully developed, and the problem of the formation of tars that may cause catalyst poisoning has not been fully resolved yet (Ericsson, 2017). In all cases, the produced gas would need to be further processed to extract hydrogen. The complex processing of biomass means that it is generally a more expensive way of producing low-carbon hydrogen than solar- or wind-based electrolysis. The potential for large- scale biomass-based hydrogen production is also be limited by the availability of cheap biomass. For example, satisfying a theoretical hydrogen demand of 60 MtH2 in the US market – PAGE | 51 IEA. All rights reserved. USD/kgH2 kgCO2/kgH2PDF Image | The Future of Hydrogen 2019
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