Unlocking Potential for Low-Carbon Hydrogen Production from U.S. Natural Gas Resources
Zitao Wu, Haibo Zhai, Yevhen Holubnyak, Selena Gerace, Amy L. Murphy, Curtis Biggs
Abstract
High Resolution Image Download MS PowerPoint Slide Hydrogen will potentially play a key role while transitioning to a net-zero economy. This study addresses resource, environmental, economic, policy, and societal issues related to low-carbon hydrogen production by steam methane reforming with carbon capture and storage in Wyoming and other natural-gas-rich states. For low-carbon hydrogen produced from natural gas and electricity supplies and which stores CO 2 in saline reservoirs in Wyoming, the levelized cost of hydrogen (LCOH) ranges from $1.62–2.00/kg H 2, and the life cycle emissions range from 3.85–5.74 kg CO 2 -eq/kg H 2 . If claimed, the 45Q tax credit decreases the LCOH by 19%. Although the supplies of renewable natural gas feedstock and zero- or low-carbon electricity can lower the carbon footprint to make hydrogen projects qualified for the 45V tax credit, the 45Q tax credit is still a stronger economic incentive. To reduce the supply cost, a hydrogen cluster can be developed in the state by leveraging the colocation and coavailability of multiple natural resources and transport infrastructure. Developing a hydrogen cluster can directly create several thousand construction jobs and several hundred permanent jobs in Wyoming. Low-carbon hydrogen production can also be scaled up in other states across the nation.