Cost Analysis of Hydrogen Production for Transport Application

Abstract

One of the challenges faced in the United Kingdom energy market is the need to supply clean energy at affordable prices. Hydrogen can be used as an energy carrier and has been applied as fuel for automotive engines. Several technologies exist for the production of hydrogen fuel but their acceptance is dependent on the cost and impact on the environment. Steam methane reforming is an established hydrogen production process in the UK. Currently there are 8 fuel cell buses that run on hydrogen fuel but the hydrogen used is produced via steam methane reforming. Production of hydrogen through solar powered electrolysis is a cleaner option but at what economic cost? In this paper, cost analysis is conducted to compare the cost of producing the amount of hydrogen needed to run the RV1 fuel cell buses at Lea Interchange bus garage through steam methane reforming of natural gas to solar powered water electrolysis. From the analysis it was discovered that levelised energy cost of solar powered electrolysis system is 15 times the levelised energy cost of steam methane reforming of natural gas. Thus, the production of hydrogen is not economically feasible through solar powered water electrolysis system.