Hydrogen
Hydrogen is the most abundant element in the universe. However, it is locked up in compounds like fossil fuels, gasses and water. It takes a great deal of energy to liberate those hydrogen molecules — either in ‘blue’ form via steam methane reforming of natural gas with CCS, or as ‘green’ hydrogen from water and renewable electricity via electrolysis.
Hydrogen has been used in large quantities for well over 100 years as a chemical feedstock, in fertilizer production, and in refineries. Currently, 99% of U.S. hydrogen production is sourced from fossil fuels, with 95% from natural gas by Steam Methane Reform (SMR) and 4% by partial oxidation of natural gas via coal gasification.
Only 1% of U.S. hydrogen is produced from electrolysis. Annually, the United States produces more than 10 million metric tons (MMT) of hydrogen, and approximately 60% of it is produced in “dedicated” hydrogen production facilities as their primary product.
SMR is a mature production process that builds upon the existing natural gas pipeline delivery infrastructure. Another well-developed, but more expensive approach for hydrogen production is splitting water. Methods used include electrolysis, photo-electrochemical cells, or solar thermochemical systems. Globally, supplying hydrogen to industrial users is a major business, and the demand has grown more than threefold since 1975, and it continues to rise.5 Industrial technologies for hydrogen production include catalytic steam reforming (800-1000°C) and partial oxidation (600-900°C) of hydrocarbons (e.g., natural gas) or renewable fuels (e.g., bioethanol); coal or coal blends with biomass and waste plastics gasification; water electrolysis; thermochemical water splitting at around 900°C; and biological production.
Given the substantial economic advantage of gasification and methane reforming in all likelihood, they will be the lowest cost source of large-scale hydrogen for the foreseeable Hydrogen production from fossil fuels is the least expensive source of hydrogen. Steam reforming of natural gas for hydrogen production costs vary from $1.43/kg to $2.27/kg with CO capture and storage (CCS) and are highly dependent on the delivered natural gas price. Numerous studies report the cost of hydrogen from gasification to vary between $1.16/kg and $1.63/kg for coal and between $1.31/kg and $2.06/kg for coal/biomass/waste plastic with CO2 capture and storage. These processes are also highly dependent on the delivered feedstock price.
Hydrogen production cost through electrolysis at a centralized station is estimated at $5/kg to $6/kg with electricity from nuclear or wind resources. Hydrogen from zero-carbon electricity, such as nuclear or wind, is 2.5-4 times more costly than hydrogen from carbon-neutral or net negative carbon fossil resources.
<$1/kg H2
Our Cost
$5-6/kg H2
Electrolysis Cost
APT produces hydrogen and syngas using low-cost feedstocks, significantly lowering CapEx and OpEx compared to any competing processes.
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