Techno-economic analysis of strategic hydrogen reserves in the United States

Hydrogen is important for large-scale energy storage and industrial applications, and a strategic hydrogen reserve can enhance grid resilience and long-term energy security. Geologic formations such as depleted gas reservoirs, saline aquifers, and salt caverns are promising candidates. However, knowledge gaps remain regarding their economic performance under strategic reserve operation conditions. This study develops a techno-economic workflow to evaluate the feasibility of strategic hydrogen reserves under realistic operational conditions. Applied to three representative sites, results show that after 40 years of operation, salt caverns yield the lowest levelized storage cost ($0.72/kg) compared to depleted gas reservoirs ($1.37/kg) and saline aquifers ($1.49/kg). Reducing hydrogen production costs improves economic viability by at least 40% across formations. Incorporating regional hydrogen demand further enhances feasibility for depleted gas reservoirs and saline aquifers by diluting capital costs, while salt caverns show limited improvement due to capacity constraints. These results inform future strategic hydrogen reserve planning.