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The Future of Hydrogen Chapter 3: Storage, transmission and distribution of hydrogen Hydrogen blending into the natural gas stream could be used to provide a pure stream of hydrogen if it is separated at the end-use site. There are a number of options to do this, but the cost of these technologies and the need to recompress natural gas once the hydrogen is extracted currently makes this a relatively expensive process. One option, pressure swing adsorption, can cost between USD 3/kgH2 and USD 6/kgH2 depending on the blending level and end-use demand (Melaina, Antonia and Penev, 2013). New hydrogen transmission and distribution infrastructure A number of new options could be developed to transport hydrogen from its point of production to end users. Like natural gas, pure hydrogen can be liquefied before it is transported to increase its density. However, liquefaction requires hydrogen to be cooled to minus 253°C; if the hydrogen itself were to be used to provide this energy, then it would consume between around 25% and 35% of the initial quantity of hydrogen (based on today’s technologies) (Ohlig and Decker, 2014). This is considerably more energy than is required to liquefy natural gas, which consumes around 10% of the initial quantity of natural gas. An alternative possibility is to incorporate the hydrogen into larger molecules that can be more readily transported as liquids. Options include ammonia and LOHCs (Box 7).19 Ammonia and LOHCs are much easier to transport than hydrogen, but they often cannot be used as final products and a further step is needed to liberate the hydrogen before final consumption (except in cases where ammonia, for example, can be used directly by the final customer). This entails extra energy and cost, which must be balanced against the lower transport costs. Our analysis indicates that transmission of hydrogen as a gas by pipeline is generally the cheapest option if the hydrogen needs be transported for distances of less than about 1 500 km. For longer distances, transmission as ammonia or LOHC may well be a more cost-effective option, especially if the hydrogen needs to be moved overseas, even taking into account the costs of converting hydrogen into ammonia or LOHC and back again. For local distribution, pipelines are cost-effective for distributing high volumes of hydrogen over longer distances; in other cases trucks are likely to be the cheaper option. Overall, hydrogen blending would be likely to increase costs slightly by around USD 0.3/kgH2 to USD 0.4/kgH2, on top of the costs of hydrogen production. This increase arises from the need for injection stations on the transmission and distribution grids, as well as higher operational costs (Roland Berger, 2017). 19 Hydrogen can also be incorporated into other well-established end-use fuels, such as synthetic methane or biofuels (as discussed in Chapter 2), and then shipped in the existing infrastructure for these products and distributed to their existing demand centres, reducing their CO2 intensity. Whether or not this can be cost-effective depends on the trade-off between the higher costs of the additional processing step and the lower costs of using existing infrastructure. See Chapter 4 for further discussion. PAGE | 74 IEA. All rights reserved.PDF Image | The Future of Hydrogen 2019
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