Estimating the Value of Nuclear Integrated Hydrogen Production and the Dependency of Electricity and Hydrogen Markets on Natural Gas

Program Document · Tue Aug 22 04:00:00 EDT 2023

OSTI ID:2315033

Cheng, Wen-Chi ^[1]; Larsen, Levi Morin ^[1]; Talbot, Paul W ^[1]; Boardman, Richard D ^[1]; Knighton, Todd ^[1]

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1. Idaho National Laboratory

Producing low carbon Hydrogen at a competitive price is one of the challenges to hydrogen being part of the solution to reach net-zero emission targets set by the U.S. DOE by 2050. With projected near-term improvements in technology, hydrogen production via solid oxide electrolysis cell (SOEC) / high-temperature steam electrolysis (HTSE) integrated with existing light water reactor (LWR) Nuclear Power Plants (NPP-HTSE) can produce carbon-free hydrogen competitively. In the near term, a 10-year production tax credit (PTC) found in the Inflation Reduction Act (IRA) has been passed, which will catalyze the development and improvement of hydrogen production technology to be competitive. The “1-1-1” target set by the U.S. DOE is to reduce the cost of carbon-free hydrogen by 80% to $1 per kilogram in 1 decade. Several models are available to analyze the profitability, opportunity, and technical capability of NPP-HTSE systems. In order of complexity from most complex to least complex some of these models include: RAVEN/HERON, process models using Aspen HYSYS and capital expense estimations using Aspen Process Economic Analyzer (APEA) and levelized cost of hydrogen (LCOH) calculation using the H2A model (Hydrogen Analysis Model), and custom spread sheets built by the interested party. Though some of the more advanced existing models provide detailed analysis to complex grid integrated problems, they also can take considerable time to setup and run. These advanced models are well suited to complex grid integrated analysis and the consideration of flexibility and variability of regulated and de-regulated electricity price and advanced estimation of capital and operating expenses and heat and material balances.

• Research Organization: Idaho National Laboratory (INL), Idaho Falls, ID (United States)
• Sponsoring Organization: 58
• DOE Contract Number: AC07-05ID14517
• OSTI ID: 2315033
• Report Number(s): INL/RPT-23-73909-Rev000
• Country of Publication: United States
• Language: English

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