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The Future of Hydrogen 2019

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The Future of Hydrogen 2019 ( the-future-hydrogen-2019 )

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The Future of Hydrogen Chapter 2: Producing hydrogen and hydrogen-based products Figure 19. Hydrogen production costs in different parts of the world Notes: Bars indicate range between near- and long-term hydrogen production costs, which include a CO2 price of USD 25/t CO2 in the near term and USD 100/tCO2 in the long term. For options from coal and natural gas, the higher value indicates the long-term costs (due to the increasing CO2 price), whereas for hydrogen from renewable electricity the lower value indicates the long-term costs. Source: IEA 2019. All rights reserved. In countries relying on gas imports and characterised by good renewable resources, clean hydrogen production from renewable electricity can compete effectively with production that relies on natural gas. Converting hydrogen to hydrogen-based fuels and feedstocks that are easier to store, transport and use Hydrogen has low energy density, which makes it more challenging to store and transport than fossil fuels. However, it can be converted into hydrogen-based fuels and feedstocks, such as synthetic methane, synthetic liquid fuels and ammonia, which can make use of existing infrastructure for their transport, storage and distribution. This can reduce the costs of reaching final users. Some of the synthetic hydrocarbons produced from hydrogen can be direct substitutes for their fossil equivalents. Ammonia is already used today as a feedstock in the chemical industry (see Chapter4) and could be a hydrogen carrier for the long-distance transport of hydrogen in the future (see Chapter 3), or itself be used as fuel in the shipping sector (see Chapter 5). The potential benefits and opportunities of these hydrogen-based fuels and feedstocks have to be weighed, however, against the costs of converting hydrogen into these products. Many of the technology pathways to produce these fuels and feedstocks are at an early demonstration stage, resulting in high costs. Producing ammonia requires the separation of nitrogen from the air, while the production of synthetic hydrocarbons requires carbon as an input, which has implications for the cost of production, while the origin of the carbon also affects the environmental impact and the carbon intensity of the synthetic hydrocarbon. PAGE | 55 IEA. All rights reserved.

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