Cost effective integration of hydrogen in energy systems with CO 2 constraints

Abstract

The integration of hydrogen in national energy systems is illustrated in four extreme scenarios, reflecting four technological mainstreams (energy conservation, renewables, nuclear and CO 2 removal) to reduce C emissions. Hydrogen is cost-effective in all scenarios with higher CO 2 reduction targets. Hydrogen would be produced from fossil fuels, or from water and electricity or heat, depending upon the scenario. Hydrogen would be used in the residential and commercial sectors and for transport vehicles, industry, and electricity generation in fuel cells. At severe (50–70%) CO 2 reduction targets, hydrogen would cost-effectively supply more than half of the total useful energy demands in three out of four scenarios. The marginal emission reduction costs in the CO 2 removal scenario at severe CO 2 reduction targets are DFL 200/tCO 2 ( ca $ 100/t). In the nuclear, renewable and energy conservation scenarios these costs are much higher. Whilst the fossil fuel scenario would be less expensive than the other scenarios, the possibility of CO 2 storage in depleted gas reservoirs is a conditio sine qua non.