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The Future of Hydrogen Chapter 3: Storage, transmission and distribution of hydrogen Local distribution costs While trucks carrying hydrogen gas distribute the majority of hydrogen today, this is a relatively high-cost option (Figure 28). As the distribution distance increases, pipelines become increasingly cost-competitive with trucks. A critical consideration for distribution is how much hydrogen is required by the end user. If large volumes are needed then larger pipes can be used, which reduces the cost of delivery. For example, if 100 tonnes per day (tpd), roughly the amount of hydrogen that would be required by a single 200 MW hydrogen power plant, are required at a location 500 km away from the point of import, then the use of trucks would be cheaper than constructing a pipeline; if 500 tpd are required, then a pipeline would have lower unit costs. Nevertheless, it is reasonable to expect that, over the next decade, compressed gas tube trailers and liquid hydrogen tanks will remain the main distribution modes, just as distribution of gasoline and diesel to geographically dispersed refuelling stations is mostly carried out using trucks today. Costs also depend strongly on the required end use of the hydrogen. If pure hydrogen is required, then the additional cost of extracting hydrogen from ammonia or an LOHC must be included. The cost of this reconversion depends on the purity of the hydrogen required: if the hydrogen is to be used in fuel cells rather than combusted, then reconversion is more expensive. Furthermore, reconversion costs at the point of end use (for example at a hydrogen refuelling station) is higher than for centralised reconversion (for example at a transmission import terminal). The IEA estimates that the cost of distributing LOHC by truck for a distance 500 km would be USD 0.8/kgH2 and the cost of extracting and purifying the hydrogen at the point of end use would be USD 2.1/kgH2. The total cost of local distribution would therefore be USD 2.9/kgH2. For ammonia the equivalent cost would be USD 1.5/kgH2; however, if the ammonia could be used by the final customer without the need for reconversion back to hydrogen, the cost of distribution would considerably lower, at USD 0.4/kgH2. Figure 28. 2.5 2.0 1.5 1.0 0.5 0.0 Cost of hydrogen distribution to a large centralised facility and cost of reconversion to gaseous hydrogen Distribution 2.5 2.0 1.5 1.0 0.5 0.0 Hydrogen reconversion 0 100 200 300 400 500 km Truck (gas H2) Truck (LOHC) Pipe (100 tpd) Truck (liquid H2) Truck (ammonia) Pipe (500 tpd) Centralised Decentralised Notes: More information on the assumptions is available at www.iea.org/hydrogen2019. Source: IEA 2019. All rights reserved. New pipelines are likely to be the cheapest option for distributing large volumes of hydrogen; extracting a pure stream of hydrogen from ammonia and LOHC is expensive. PAGE | 80 IEA. All rights reserved. Liquid H2 LOHC Ammonia Liquid H2 LOHC Ammonia USD/kgH2 USD/kgH2PDF Image | The Future of Hydrogen 2019
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