Concurrent 2. Presentation for: Techno-economic evaluation of blue hydrogen production with carbon capture and storage for onshore Eastern Australia

Abstract

Presented on Tuesday 17 May: Session 2

This techno-economic assessment models the feasibility of a greenfield blue hydrogen development with production capacity of 400 tons of hydrogen per day (TH₂/day). At an assumed 85% CO₂ recovery rate, the 400 TH₂/day production scale equates to a need for approximately 1.241 million tons of CO₂ per year (MtCO₂/year) of subsurface CO₂ storage capacity over an assumed project life of 25 years (approximately 31 Mt of total CO₂ sequestered). The blue hydrogen production technology applied to the assessment is a Steam Methane Reformer (SMR) with two points of CO₂ recovery (pre-combustion process stream amine scrubbing and post-combustion flue gas capture). The remaining key scope components are the CO₂ compression and dehydration system, 65 km of CO₂ distribution pipeline and a CO₂ injection and storage hub comprised of three injection wells, three deep observation wells and three groundwater monitoring wells. The study includes the screening process applied to identify five high-grade depleted gas reservoirs in the Cooper Basin that are the CO₂ storage candidates, and which ultimately define the project location. The economic evaluation of the project includes the definition of cost and operations estimates to determine a mean project case and then applies a Palisade @Risk probabilistic distribution model to key project inputs as to risk the project under various scenarios. The analysis concludes that the economic viability of large-scale, greenfield blue hydrogen projects in Australia is highly dependent on hydrogen sale price, Australian Carbon Credit Unit (ACCU) value, wholesale natural gas prices and capital cost efficiency.

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