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The Future of Hydrogen Chapter 3: Storage, transmission and distribution of hydrogen Chapter 3: Storage, transmission and distribution of hydrogen Transport and storage costs will play a significant role in the competitiveness of hydrogen. If hydrogen can be used close to where it is made, these costs could be close to zero. However, if the hydrogen has to travel a long way before it can be used, the costs of transmission and distribution could be three times as large as the cost of hydrogen production. The smooth operation of large-scale and intercontinental hydrogen value chains will depend on the availability of adequate storage capacity and functionality. Various storage options are available today, with underground facilities that can hold tens of thousands of tonnes of hydrogen already in operation. Further research is needed to assess what storage is likely to be needed in the future in terms of volume, duration, price, and speed of discharge, and to examine options to promote their development. Long-distance transmission and local distribution of hydrogen is difficult given its low energy density. Compression, liquefaction or incorporation of the hydrogen into larger molecules are possible options to overcome this hurdle. Each option has advantages and disadvantages, and the cheapest choice will vary according to geography, distance, scale and the required end use. Blending hydrogen into existing natural gas pipeline networks would provide a boost to hydrogen supply technologies without incurring the investment costs and risks of developing new hydrogen transmission and distribution infrastructure. Action to update and harmonise national regulations that set limits on allowed concentrations of hydrogen in natural gas streams would help to facilitate such blending. Ifhydrogenneedstobeshippedoverseas,itgenerallyhastobeliquefiedortransportedas ammonia or in liquid organic hydrogen carriers (LOHCs). For distances below 1 500 km, transporting hydrogen as a gas by pipeline is likely to be the cheapest delivery option; above 1 500 km, shipping hydrogen as ammonia or an LOHC is likely to be more cost-effective. These alternatives are cheaper to ship, but the costs of conversion before export and reconversion back to hydrogen before consumption are significant. They may also sometimes give rise to safety and public acceptance issues. Pipelines are likely to be the most cost-effective long-term choice for local hydrogen distribution if there is sufficiently large, sustained and localised demand. However, distribution today usually relies on trucks carrying hydrogen either as a gas or liquid, and this is likely to remain the main distribution mechanism over the next decade. There are a number of regions where hydrogen imports could be cheaper than domestic production. In Japan domestic production of hydrogen using electrolysers and its distribution could cost around USD 6.5 per kgH2 in 2030; hydrogen imported from Australia could cost around USD 5.5/kgH2. Similar opportunities may develop in Korea and parts of Europe. Using ammonia directly in end-use sectors could further improve the competitiveness of imports. Even where importing hydrogen is not the cheapest option, some energy-importing countries may wish to consider imports to increase their energy diversity and access to low-carbon energy. PAGE | 67 IEA. All rights reserved.PDF Image | The Future of Hydrogen 2019
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