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The Future of Hydrogen Chapter 2: Producing hydrogen and hydrogen-based products industrial production process; and then the resulting CO2 is used in combination with hydrogen to produce a synthetic hydrocarbon fuel. However, such a system would still involve emissions of CO2 from fossil fuels and would have a theoretical upper limit of 50% emissions reduction (Bennett, Schroeder and McCoy, 2014). For very low CO2 pathways, non-fossil CO2 sources would be needed. One option is to use CO2 formed at high purity during the production of biogas and bioethanol. Capturing CO2 from these processes requires only moderate additional investment and energy, and has CO2 capture costs as low as USD 20–30/tCO2 (Irlam, 2017). If the production of the hydrogen-based fuel is at the same site as the production of the upgraded biogas or biofuel, then the two product streams can be blended to take advantage of the same infrastructure for onward distribution. There is also an efficiency from maximising the use of the carbon contained in the original biomass input. If biomass gasification were to reach commercial scale, it could also become a potential CO2 source owing to relatively low CO2 capture costs and compatibility with most biomass feedstocks (Ericsson, 2017). To raise efficiency, it may not be necessary to separate the CO2 if the externally- sourced hydrogen can be introduced directly into the gasification products (containing CO2, and also hydrogen and carbon monoxide) so that they can be converted to synthetic fuels in one combined reaction process (Hannula, 2016). However, it remains uncertain whether sufficient biogenic CO2 could be available in the future at the scale needed for widespread production of hydrogen-based synthetic hydrocarbon fuels. CO2 can also be captured directly from the atmosphere, where there a no constraints on the availability of CO2. However, due to the low atmospheric concentrations of CO2, DAC is more energy-intensive than CO2 capture from gases formed at power plants or industrial facilities. Today’s units require both electricity and heat for CO2 capture, with the two main types of system being high-temperature or low-temperature DAC. High-temperature DAC operates at around 900°C and uses an aqueous solution to absorb CO2, while low-temperature DAC operates at around 100°C with a solid sorbent. Estimates for the energy requirements of DAC are in the order of 250–400 kWh of heat and 1 500–1 750 kWh of electricity per tonne of CO2. The heat requirement can, however, be reduced by integrating DAC with the production of synthetic hydrocarbon fuels (Fasihi and Breyer, 2017). DAC plants operate today at a scale of 900 tCO2 per year or less in Canada, Iceland, Italy and Switzerland, but practical experience remains limited. Cost estimates for DAC remain uncertain, but studies estimate that in the long term costs for DAC may fall to a range of USD 94–232/tCO2 for high-temperature DAC (Keith et al., 2018) and USD 130–170t CO2 for low- temperature DAC (Fasihi, Efimova and Breyer, 2019). The environmental impact of hydrogen-based synthetic hydrocarbon fuels depends on the CO2 intensity of both the hydrogen and the CO2. Policy must therefore consider the CO2 intensity of the whole value chain, including the source of the CO2, to avoid outcomes that do not lead to CO2 reduction overall. Policies that incentivise hydrogen production and hydrogen-based fuel production separately could inadvertently encourage the separation of CO2 from hydrogen in fossil methane and its recombination with hydrogen to produce methane again, with an investment of energy in the process. A low-carbon hydrogen-based fuel is one with net emissions after combustion that are zero, or nearly zero, after subtracting emissions of CO2 originating from a biogenic or atmospheric carbon source. It is important to manage this accounting challenge effectively. The simplest approach, if feasible, may be to certify and track carbon through the PAGE | 59 IEA. All rights reserved.PDF Image | The Future of Hydrogen 2019
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