Cost Analysis of Nuclear Hydrogen Production Using IAEA-HEEP 4 Software

Abstract

Hydrogen is a commercially important element. Basically, there are several methods of hydrogen production that have been commercially used, such as Steam Methane Reforming (SMR), High Temperature Steam Electrolysis (HTSE), and thermochemical cycles, like Sulphur-Iodine (SI). Among these methods, SMR is the most widely used for large-scale hydrogen production, with conversion efficiency between 74–85% and it has commercially used in some fertilizer industries in Indonesia. Steam reforming is a method to convert alkane (natural gas) compounds to hydrogen and carbon dioxide (synthetic gas) by adding moisture at high pressure and temperature (35-40 bar; 800-900°C). These hydrogen production technologies can be coupled with different nuclear reactors based on the heat required in the process. The High Temperature Gas-cooled Reactor (HTGR) using helium as a coolant, has a high outlet temperature (900°C), so it can potentially be used to supply for process heat for hydrogen production, coal liquefaction/gasification or for other industrial processes requiring high temperature heat. Hydrogen production cost from SMR method is influenced by a range of technical and economic factors. The fuel component of natural gas needed in the SMR method can be replaced by nuclear heat from a nuclear power plant (NPP) operating in cogeneration mode (i.e. simultaneous producing electric power and heat), hence contributing to the reduction of carbon dioxide in the process.In the SMR method, fuel costs are the largest cost component, accounting for between 45% and 75% of production costs. Therefore, there is opportune to assess the economics of hydrogen production by using nuclear heat. The economic evaluation is done by using IAEA HEEP-4 Software.The results comprise cost break up for 2 cases, coupling SMR process for hydrogen production with: (1) 2 HTGRs of 170 MWth/unit; and (2) 1 HTGR of 600 MWth/unit. The cost of hydrogen production is highly depend on the scale of the NPP as energy source and results indicated that hydrogen production cost of the 1 HTGR Unit600 MWth (Case 2) has a lower value (1.72 US$/kgH2), than the cost obtained when 2 HTGR units of 170 MWth each (case 1) are considered (2.72 US$/kgH2). For comparison, the hydrogen production cost by using SMR with carbon capture and storage (CCS) with natural gas as fuel is 2.27 US$/kgH2.