Techno-economic analysis of biomass gasification for hydrogen production in three US-based case studies

Abstract

Production of low-emissions hydrogen can improve the sustainability of certain hard-to-decarbonize sectors, like industrial and residential heating. Gasification of biomass has been identified as a promising production method for high-volume clean hydrogen, but uncertainty around its economic conditions have prevented it from being used in practice. This work evaluates the economics of three potential gasification facilities in the United States to identify the optimal conditions for a successful hydrogen plant. The locations were selected based on local policies that create a need for high volume clean hydrogen by regulating natural gas emissions. Local features, like biomass type, availability, and distance between the biomass and hydrogen market, are taken into account. A novel simulation is used to build upon previous models to determine the effects of biomass composition on hydrogen yield and utility usage. The environmental impact of each location is then assessed using GREET, Argonne's greenhouse gas emissions quantification tool, to determine the plant's qualifications for tax credits under the Inflation Reduction Act. Ultimately, the cost of transported hydrogen in a 40 metric ton/day facility was calculated to be $3.47/kg H2 in Klamath County, Oregon (which serves both the Oregon and California markets), $4.11/kg H2 in Park County, Colorado, and $3.63/kg H2 in Middlesex County, Massachusetts. A sensitivity analysis found transportation distance and biomass availability to be major factors in these costs. Variability in biomass composition had minimal effects on plant performance.