Decarbonizing Singapore via local production of H2 from natural gas

Abstract

Interest in low emissions hydrogen as an energy vector to assist in deep decarbonization goals has gained momentum recently. In this paper, we explore local hydrogen production from natural gas with CO2 capture and sequestration (known as “blue” H2) to support Singapore's intended inclusion of low-carbon intensity H2 fuel as a way to achieve significant CO2 emission reduction through 2050. A superstructure-based model is used to minimize the total cost or emissions of the entire supply chain, from H2 production to consumption in the power, industry, domestic, marine, and road transport sectors. H2 demand for each sector is projected for three H2 penetration scenarios (low, medium, and high). The results are analyzed for the levelized cost of H2, reduction in carbon emissions, and cost of carbon avoidance. Costs associated with direct and indirect CO2 emissions, as well as H2 and CO2 infrastructure costs, are included in total costs. A comparison of blue H2 and direct natural gas utilization with post-combustion CO2 capture and sequestration is also presented. We find that decarbonizing Singapore via local production of blue H2 will involve a relatively high carbon avoidance cost.