Abstract

Although renewable energy-based technologies such as water electrolysis and biomass gasification for hydrogen production are cleaner than fossil energy-based routes, there are still prevailing challenges associated with the high cost and operational challenges in the scale-up of those technologies in the short term. Considering the abundance of coal as a current primary source of energy in Australia, the use of coal to produce hydrogen is not only in line with Australia’s resource endowment but is also expected to become a supplement to the other hydrogen production pathways during the global energy transition period. This paper presents a comprehensive techno-economic assessment of low-emission hydrogen production from Australian coal gasification integrated with carbon capture and storage (CCS). The study explores four cases of hydrogen production, comparing Australian brown coal (Victorian brown coal) and black coal (Queensland black coal) gasification. Variations in gasifiers, gasification agents, and associated operating conditions contribute to differences in energy efficiency, costs, and CO2 emissions among the cases. The findings reveal a levelized cost of hydrogen from coal gasification ranging between A$4.12-4.90 per kg of hydrogen. Notably, entrained flow gasification of Victorian brown coal in a mixture of oxygen and steam environment demonstrates advantages under the current market conditions. However, less mature technologies like dual fluidized bed gasifiers could emerge as viable alternatives if deployed on a commercial scale. The study also addresses direct carbon emissions from the process, indicating a CO2 emission intensity range of 16.3-20.9 kg CO2/kg H2 without CCS and 0.1-1.1 kg CO2/kg H2 with CCS for the four cases. These insights contribute valuable information for decision-making in the pursuit of sustainable and economically feasible hydrogen production methods during the ongoing energy transition.

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