1. Cost Analysis
The production of hydrogen from fossil fuels is said to be a mature technology. Of the two main fossils fuels used, natural gas offers the best economics and efficiencies and is the main pathway used to generate hydrogen nowadays, mainly for the production of ammonia and methanol. The other, being coal, can also be used to produce hydrogen but the initial investment is much greater and the efficiency is lower compared to when natural gas is used. Coal can be economically favourable when compared with natural gas for its lower feedstock cost [$1.26 per GJ LHV (lower heating value)], but due to high greenhouse gas emission from coal gasification makes it less favourable when compared with the lower carbon content natural gas. …show more content…
In comparison with Europe the US market is two times bigger and is expected to rise to $1.605 million in 2010. Natural gas is currently the second most important source of energy for Europe, meeting around 25% of primary energy needs, forecast to rise towards 30% by 2020. Although gas demand is growing in all sectors of the economy, it is particularly strong in power generation, because when it is used instead of other fossil fuels, CO2 emissions are lowered significantly and other pollutants are much less. Natural gas is expected to almost double by 2020.
In cost analysis of industrial processes, capital-investment costs, manufacturing costs, and general expenses including income taxes must be taken into consideration. The total investment for any process consists of fixed-capital investment for physical equipment and facilities in the plant plus working capital which must be available to pay salaries, keep raw materials and products on hand, and handle other special items requiring a direct cash outlay. Also, capital must be allocated for direct plant expenses, such as those for raw materials, labour, and …show more content…
N. Q O.615
Where Q is plant capacity (tons/year)
And N is no. of functional units
C = 8300 X 5 X 41200 0.615 = $28 589 719 1.4 Hydrogen storage
Hydrogen can be stored either in liquefied or compressed gaseous form. Liquefaction of hydrogen is a costly option. Compressors and heat exchanger cold-boxes account for most of the cost. It is estimated that the total cost for a liquefier is $ 1015 kg/d. Energy consumption by multi stage compression is approximately 10 - 13 kWh / kg of H2.
Compressors also play a major role in the capital and operating costs for compressing hydrogen. Multi stage compressors are required to achieve the required pressure of hydrogen. For gaseous hydrogen compression it is estimated a capital cost of $ 2000 - 3000 / kW and power requirement of 0.5 – 2 kW / kg / hr.
Although liquefaction is more costly than compression, storing of H2 in liquid form is inexpensive and more practical than storing H2 in compressed gaseous form. Hydrogen has the lowest energy density and thus more amount of hydrogen is needed to give equal amount of energy as gasoline. Therefore the higher the pressure, the lower the storage volume and higher the energy stored. (Ebner,
The production of hydrogen from fossil fuels is said to be a mature technology. Of the two main fossils fuels used, natural gas offers the best economics and efficiencies and is the main pathway used to generate hydrogen nowadays, mainly for the production of ammonia and methanol. The other, being coal, can also be used to produce hydrogen but the initial investment is much greater and the efficiency is lower compared to when natural gas is used. Coal can be economically favourable when compared with natural gas for its lower feedstock cost [$1.26 per GJ LHV (lower heating value)], but due to high greenhouse gas emission from coal gasification makes it less favourable when compared with the lower carbon content natural gas. …show more content…
In comparison with Europe the US market is two times bigger and is expected to rise to $1.605 million in 2010. Natural gas is currently the second most important source of energy for Europe, meeting around 25% of primary energy needs, forecast to rise towards 30% by 2020. Although gas demand is growing in all sectors of the economy, it is particularly strong in power generation, because when it is used instead of other fossil fuels, CO2 emissions are lowered significantly and other pollutants are much less. Natural gas is expected to almost double by 2020.
In cost analysis of industrial processes, capital-investment costs, manufacturing costs, and general expenses including income taxes must be taken into consideration. The total investment for any process consists of fixed-capital investment for physical equipment and facilities in the plant plus working capital which must be available to pay salaries, keep raw materials and products on hand, and handle other special items requiring a direct cash outlay. Also, capital must be allocated for direct plant expenses, such as those for raw materials, labour, and …show more content…
N. Q O.615
Where Q is plant capacity (tons/year)
And N is no. of functional units
C = 8300 X 5 X 41200 0.615 = $28 589 719 1.4 Hydrogen storage
Hydrogen can be stored either in liquefied or compressed gaseous form. Liquefaction of hydrogen is a costly option. Compressors and heat exchanger cold-boxes account for most of the cost. It is estimated that the total cost for a liquefier is $ 1015 kg/d. Energy consumption by multi stage compression is approximately 10 - 13 kWh / kg of H2.
Compressors also play a major role in the capital and operating costs for compressing hydrogen. Multi stage compressors are required to achieve the required pressure of hydrogen. For gaseous hydrogen compression it is estimated a capital cost of $ 2000 - 3000 / kW and power requirement of 0.5 – 2 kW / kg / hr.
Although liquefaction is more costly than compression, storing of H2 in liquid form is inexpensive and more practical than storing H2 in compressed gaseous form. Hydrogen has the lowest energy density and thus more amount of hydrogen is needed to give equal amount of energy as gasoline. Therefore the higher the pressure, the lower the storage volume and higher the energy stored. (Ebner,