Hydrogen (H2) production and usage can be integrated into existing infrastructure to reduce carbon emissions and increase fuel supply security. In this work, we design and execute a technoeconomic analysis for a multifunctional District Energy System (DES) that produces and uses H2. We parametrically analyze levelized costs for H2, oxygen, and carbon dioxide abatement and capture to evaluate the viability of integrating H2 production, using Solid Oxide Electrolysis Cells, for a DES that could alternatively purchase H2 and install carbon capture utilization and storage (CCUS). We find that different project alternatives are distinctively sensitive to certain product prices, and therefore suitable for particular markets. Self-production alternatives with large H2 production do not require carbon pricing, so long as oxygen revenues are high. Conversely, when H2 is purchased, carbon prices in excess of 209/TonneCO2e are required for project viability. Projects with CCUS that purchase H2 depend on carbon-related revenues–even when hydrogen is free. When purchasing H2 in scenarios without carbon pricing, only projects using renewable-energy-based H2 and no CCUS implementation are viable for nonzero H2 prices (<0. 85/kgH2). Our work demonstrates that evaluating the levelized costs of all products in combination is necessary to assess the economic feasibility of multifunctional systems.
Hincapie-Ossa et al. (Thu,) studied this question.