Techno-economic and life cycle analysis of synthetic natural gas production from low-carbon H2 and point-source or atmospheric CO2 in the United States

Abstract

Synthetic natural gas (SNG) is of great interest in reducing fossil energy consumption while maintaining compatibility with existing NG infrastructure and end-use applications equipment. SNG can be produced using clean H2 generated from renewable or nuclear energy and CO2 captured from stationary sources or the atmosphere. In this study, we develop an engineering process model of SNG production using Aspen Plus® and production scales reported by the industry. We examine the levelized cost and life cycle greenhouse gas (GHG) emissions of SNG production under various CO2 supply scenarios. Considering the higher cost of H2 transportation compared with CO2 transportation, we assume that CO2 feedstock is transported via pipeline to the H2 production location, which is collocated with the SNG plant. We also evaluate the cost of CO2 captured from the atmosphere, assuming the direct air capture process can occur near the SNG facility. Depending on the CO2 supply chain, the levelized cost of SNG is estimated to be in the range of $45–76 per million British thermal units (MMBtu) on a higher heating value (HHV) basis. The SNG production cost may be reduced to $27–57/MMBtu-HHV by applying a tax credit available in the United States for low-carbon H2 production (45 V). With a lower electricity price of 3ȼ/kWh for water electrolysis and accounting for a 45 V tax credit, the SNG cost reaches parity with the cost of fossil NG. Depending on the CO2 supply chain, SNG can reduce life cycle GHG emissions by 52–88 % compared with fossil NG.