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Title: A Life Cycle Cost Analysis Framework for Geologic Storage of Hydrogen

Abstract

Large scale geostorage options for fuels including natural gas and petroleum offer substantial buffer capacity to meet or hedge against supply disruptions. This same notion may be applied to large scale hydrogen storage to meet industrial or transportation sector needs. This study develops an assessment tool to calculate the potential ‘gate-to-gate’ life cycle costs for large scale hydrogen geostorage options in salt caverns, and continues to develop modules for depleted oil/gas reservoirs and aquifers. The U.S. Department of Energy has an interest in these types of storage to assess the geological, geomechanical and economic viability for this type of hydrogen storage. Understanding, and looking to quantify, the value of large-scale storage in a larger hydrogen supply and demand infrastructure may prove extremely beneficial for larger infrastructure modeling efforts when looking to identify the most efficient means to fuel a hydrogen demand (e.g., industrial or transportation-centric demand). Drawing from the knowledge gained in the underground large scale storage options for natural gas and petroleum in the U.S., the potential to store relatively large volumes of CO 2 in geological formations, the hydrogen storage assessment modeling will continue to build on these strengths while maintaining modeling transparency such that other modeling effortsmore » may draw from this project.« less

Authors:
 [1];  [1];  [1]
  1. Sandia National Lab. (SNL-NM), Albuquerque, NM (United States)
Publication Date:
Research Org.:
Sandia National Lab. (SNL-NM), Albuquerque, NM (United States)
Sponsoring Org.:
USDOE National Nuclear Security Administration (NNSA)
OSTI Identifier:
1324936
Report Number(s):
SAND2009-6310
275826
DOE Contract Number:
AC04-94AL85000
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
08 HYDROGEN

Citation Formats

Lord, Anna S., Kobos, Peter Holmes, and Borns, David James. A Life Cycle Cost Analysis Framework for Geologic Storage of Hydrogen. United States: N. p., 2009. Web. doi:10.2172/1324936.
Lord, Anna S., Kobos, Peter Holmes, & Borns, David James. A Life Cycle Cost Analysis Framework for Geologic Storage of Hydrogen. United States. doi:10.2172/1324936.
Lord, Anna S., Kobos, Peter Holmes, and Borns, David James. Tue . "A Life Cycle Cost Analysis Framework for Geologic Storage of Hydrogen". United States. doi:10.2172/1324936. https://www.osti.gov/servlets/purl/1324936.
@article{osti_1324936,
title = {A Life Cycle Cost Analysis Framework for Geologic Storage of Hydrogen},
author = {Lord, Anna S. and Kobos, Peter Holmes and Borns, David James},
abstractNote = {Large scale geostorage options for fuels including natural gas and petroleum offer substantial buffer capacity to meet or hedge against supply disruptions. This same notion may be applied to large scale hydrogen storage to meet industrial or transportation sector needs. This study develops an assessment tool to calculate the potential ‘gate-to-gate’ life cycle costs for large scale hydrogen geostorage options in salt caverns, and continues to develop modules for depleted oil/gas reservoirs and aquifers. The U.S. Department of Energy has an interest in these types of storage to assess the geological, geomechanical and economic viability for this type of hydrogen storage. Understanding, and looking to quantify, the value of large-scale storage in a larger hydrogen supply and demand infrastructure may prove extremely beneficial for larger infrastructure modeling efforts when looking to identify the most efficient means to fuel a hydrogen demand (e.g., industrial or transportation-centric demand). Drawing from the knowledge gained in the underground large scale storage options for natural gas and petroleum in the U.S., the potential to store relatively large volumes of CO2 in geological formations, the hydrogen storage assessment modeling will continue to build on these strengths while maintaining modeling transparency such that other modeling efforts may draw from this project.},
doi = {10.2172/1324936},
journal = {},
number = ,
volume = ,
place = {United States},
year = {Tue Sep 01 00:00:00 EDT 2009},
month = {Tue Sep 01 00:00:00 EDT 2009}
}

Technical Report:

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  • The U.S. Department of Energy has an interest in large scale hydrogen geostorage, which would offer substantial buffer capacity to meet possible disruptions in supply. Geostorage options being considered are salt caverns, depleted oil/gas reservoirs, aquifers and potentially hard rock cavrns. DOE has an interest in assessing the geological, geomechanical and economic viability for these types of hydrogen storage options. This study has developed an ecocomic analysis methodology to address costs entailed in developing and operating an underground geologic storage facility. This year the tool was updated specifically to (1) a version that is fully arrayed such that all fourmore » types of geologic storage options can be assessed at the same time, (2) incorporate specific scenarios illustrating the model's capability, and (3) incorporate more accurate model input assumptions for the wells and storage site modules. Drawing from the knowledge gained in the underground large scale geostorage options for natural gas and petroleum in the U.S. and from the potential to store relatively large volumes of CO{sub 2} in geological formations, the hydrogen storage assessment modeling will continue to build on these strengths while maintaining modeling transparency such that other modeling efforts may draw from this project.« less
  • The U.S. Department of Energy (DOE) has an interest in large scale hydrogen geostorage, which could offer substantial buffer capacity to meet possible disruptions in supply or changing seasonal demands. The geostorage site options being considered are salt caverns, depleted oil/gas reservoirs, aquifers and hard rock caverns. The DOE has an interest in assessing the geological, geomechanical and economic viability for these types of geologic hydrogen storage options. This study has developed an economic analysis methodology and subsequent spreadsheet analysis to address costs entailed in developing and operating an underground geologic storage facility. This year the tool was updated specificallymore » to (1) incorporate more site-specific model input assumptions for the wells and storage site modules, (2) develop a version that matches the general format of the HDSAM model developed and maintained by Argonne National Laboratory, and (3) incorporate specific demand scenarios illustrating the model's capability. Four general types of underground storage were analyzed: salt caverns, depleted oil/gas reservoirs, aquifers, and hard rock caverns/other custom sites. Due to the substantial lessons learned from the geological storage of natural gas already employed, these options present a potentially sizable storage option. Understanding and including these various geologic storage types in the analysis physical and economic framework will help identify what geologic option would be best suited for the storage of hydrogen. It is important to note, however, that existing natural gas options may not translate to a hydrogen system where substantial engineering obstacles may be encountered. There are only three locations worldwide that currently store hydrogen underground and they are all in salt caverns. Two locations are in the U.S. (Texas), and are managed by ConocoPhillips and Praxair (Leighty, 2007). The third is in Teeside, U.K., managed by Sabic Petrochemicals (Crotogino et al., 2008; Panfilov et al., 2006). These existing H{sub 2} facilities are quite small by natural gas storage standards. The second stage of the analysis involved providing ANL with estimated geostorage costs of hydrogen within salt caverns for various market penetrations for four representative cities (Houston, Detroit, Pittsburgh and Los Angeles). Using these demand levels, the scale and cost of hydrogen storage necessary to meet 10%, 25% and 100% of vehicle summer demands was calculated.« less
  • Large scale geostorage options for fuels including natural gas and petroleum offer substantial buffer capacity to meet or hedge against supply disruptions. This same notion may be applied to large scale hydrogen storage to meet industrial or transportation sector needs. This study develops an assessment tool to calculate the potential ‘gate-to-gate’ life cycle costs for large scale hydrogen geostorage options in salt caverns, and continues to develop modules for depleted oil/gas reservoirs and aquifers. The U.S. Department of Energy has an interest in these types of storage to assess the geological, geomechanical and economic viability for this type of hydrogenmore » storage. Understanding, and looking to quantify, the value of large-scale storage in a larger hydrogen supply and demand infrastructure may prove extremely beneficial for larger infrastructure modeling efforts when looking to identify the most efficient means to fuel a hydrogen demand (e.g., industrial or transportation-centric demand). Drawing from the knowledge gained in the underground large scale storage options for natural gas and petroleum in the U.S., the potential to store relatively large volumes of CO 2 in geological formations, the hydrogen storage assessment modeling will continue to build on these strengths while maintaining modeling transparency such that other modeling efforts may draw from this project.« less
  • No abstract prepared.
  • This report extends an earlier characterization of long-duration and short-duration energy storage technologies to include life-cycle cost analysis. Energy storage technologies were examined for three application categories--bulk energy storage, distributed generation, and power quality--with significant variations in discharge time and storage capacity. More than 20 different technologies were considered and figures of merit were investigated including capital cost, operation and maintenance, efficiency, parasitic losses, and replacement costs. Results are presented in terms of levelized annual cost, $/kW-yr. The cost of delivered energy, cents/kWh, is also presented for some cases. The major study variable was the duration of storage available formore » discharge.« less