Future hydrogen markets for large-scale hydrogen production systems

The cost of delivered hydrogen includes production, storage, and distribution. For equal production costs, large users (>106m3/day) will favor high-volume centralized hydrogen production technologies to avoid collection costs for hydrogen from widely distributed sources. Potential hydrogen markets were examined to identify and characterize those markets that will favor large-scale hydrogen production technologies. The two high-volume centralized hydrogen production technologies are nuclear energy and fossil energy with carbon dioxide sequestration. The potential markets for these technologies are: (1) production of liquid fuels (gasoline, diesel and jet) including liquid fuels with no net greenhouse gas emissions and (2) peak electricity production. The development of high-volume centralized hydrogen production technologies requires an understanding of the markets to (1) define hydrogen production requirements (purity, pressure, volumes, need for co-product oxygen, etc.); (2) define and develop technologies to use the hydrogen, and (3) create the industrial partnerships to commercialize such technologies.