Assessing the cost competitiveness of electrolytic hydrogen production from small modular nuclear reactor-based power plants: A price-following perspective

Abstract

Small modular nuclear reactor power plants (SMNRPPs) for hydrogen cogeneration are in early development, and their cost competitiveness for low-temperature electrolysis has not been well-studied. This study combines a quadratically-constrained economic dispatch model and a levelized cost analysis model to evaluate hydrogen cogeneration from a 300 MW SMNRPP coupled with proton exchange membrane electrolyzers. The SMNRPP adjusts its power output based on fluctuating electricity market prices and a time-invariant conversion value for electricity pricing arbitrage. We evaluated the SMNRPP-electrolysis system for 20 years in two case study locations and found the hydrogen supply cost ranged from CAD$1.77–3.36/kg and CAD$2.11–2.77/kg in electricity markets with high and low fossil fuel-dependence, respectively. The SMNRPP-electrolysis system is more cost-effective than fossil fuel-based hydrogen production at CAD$1.54/kg if the SMNRPP capital cost decreases to CAD$4,700/kW. This is because the SMNRPP capital cost accounts for 75% of the hydrogen supply cost variance, while other techno-economic parameters account for less than 27% of the supply cost variance. The system can achieve the lowest cost hydrogen production in under 17 years if the global learning rate and installation growth rates for SMNRPPs exceed 10% and 15%, respectively, to reach a 4.96 GW global footprint. The study outcomes can help formulate policies for SMNRPPs adoption in the hydrogen economy.