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H2A Delivery
H2A Hydrogen Delivery Components Model
Matt RingerNational Renewable Energy Laboratory
February 8, 2005
Other Team Members:Mark Paster: DOEMarianne Mintz, Jerry Gillette, Jay Burke: ANLDaryl Brown: PNNLJoan Ogden: UC Davis
H2A Delivery
Outline
• Hydrogen delivery definition• H2A Delivery Component Model
– Methodology– Components included– Key Assumptions
• Spreadsheet demonstration
H2A Delivery
Hydrogen Delivery• Hydrogen delivery and storage defined as the
complete set of equipment and processes used to move hydrogen from the central production plant to the forecourt station or primary usage
H2A DeliveryHydrogen Delivery Component
Model• Excel-based tool• Allow the user to determine a “generic”
hydrogen cost for a particular component• Each storage and delivery component has
separate tab• Final hydrogen cost determined using fixed
charge rate calculation– Final hydrogen cost determined in real dollars– Model assumes MACRS depreciation– Replacement capital includes for some
components
H2A DeliveryComponent Economic Analysis
• The economic results presented assume specific scenario– Scenario refers to specific situation of hydrogen
storage and delivery … therefore, the results do not apply to every hydrogen storage and delivery application
– Scenario’s used to prepare results are static and do not include dynamic cost effects likely to be applicable in real-life development of hydrogen storage and delivery infrastructure in a demand market
H2A DeliveryConsistent Assumptions
Throughout Model• Discount Rate – 10%• Dollar Year – 2005• Startup Year – 2005• Depreciation Type – MACRS• Analysis Period – 20 years• Federal Taxes – 35%• State Taxes – 6%• Total Tax Rate – 38.6%
H2A DeliveryComponents Modeled
• Hydrogen moved in either liquid or gaseous forms
Storage ComponentsDelivery Components-Compressed Gas Tube System-Bulk Liquid Hydrogen System-Geologic-Forecourt
-Truck – Tube Trailer-Truck - LH2-Pipeline-Liquefier-Compressor (one-stage and multi-stage)-Forecourt Compressor-Terminals (gaseous and liquid)
H2A Delivery
Spreadsheet Features• Yes/no toggle switches to allow for user input
or H2A standard input– Inputs turn on/off based on yes/no toggle switch
• Error messages included to alert user when input errors are made
• Multiple options for MACRS depreciation period– Includes standard MACRS table
• Color-coded to facilitate user input
Information
Optional Input
User Input Required
Calculated Cells
H2A DeliveryComponent Model Hierarchy
Component Design Inputs Component
Design/Scenario Calculations
Financial Analysis
Direct/Indirect Capital Costs
Component Capital Costs
Component Scenario Inputs
Replacement Capital
Financial / Economic Inputs
Operating and Maintenance Costs
Component Cost in $/kg of Hydrogen
H2A Delivery
Component Spreadsheet Inputs• Design Inputs
– Inputs required to design particular component
– Includes design hydrogen throughput, operating pressures, temperatures, component efficiency, system losses
• Scenario Inputs– Inputs required to design “generic” scenario for
specific component
– Includes delivery times, component availability, days of storage required, truck speed, delivery distance
H2A DeliveryComponent Spreadsheet Inputs
(cont.)• Calculations
– No inputs required; calculations required for financial analysis
• Economic Assumptions– Lifetime, discount rate, analysis period, taxes,
depreciation period, system start-up year• Capital Costs
– All component capital costs– Options to use H2A data, or user-entered data
H2A DeliveryComponent Spreadsheet Inputs
(Cont.)• Other Capital
– Land costs (assumed depreciable)– Site preparation, engineering, contingency– Options to use H2A, Peters and Timmerhaus or
other data• O&M Costs
– Labor, feedstock costs (from H2A cost projections, or user-entered)
– Property taxes, insurance• Financial Analysis
– Calculations to get component hydrogen cost ($/kg)
H2A Delivery
Financial Analysis
• Based on fixed charge rate calculation– First, capital recovery factor is calculated
D = discount rate, N=analysis period
– Present value of depreciation charges for particular MACRS recovery period calculated
∑= −+
+=
+=
N
zz
r
zrr
zr d
ddd
CRF1 1)1(
)1()1(
1
H2A Delivery
Financial Analysis (cont.)• Fixed Charge Rate Calculation
– Based on before-tax-required formula
)1(
))1(
1(1
T
tdVbTCRF
FCRc
M
nn
n
n
−
−+
−=
∑=
b=fraction dep. base, T=total tax rate, Vn=fraction of dep. base in year n, tc=tax credits
)1()*1(
TDTCRFFCR
−−
=
D=present value of depreciation (MACRS), T=total tax rate
H2A Delivery
Financial Analysis (cont.)
• Capital multiplied by FCR; product added to sum of annual costs (labor, utilities, other O&M) – Gives required revenue
• Required revenues calculated then divided by actual hydrogen throughput in a year for component– $/kg of H2 cost
H2A Delivery
Compressed Gas Truck Delivery
• Calculations assume trailer is dropped off at station
• Tab designed based on one tractor and enough trailers to maximize tractor utilization
• Analysis period = 20 yrs
H2A Delivery
Compressed Gas Truck (cont.)• Trailer assumptions (H2A KIC):
– Max P = 2,640 psig, Min P = 135 psig– Super Jumbo trailer holds 9 tubes, total of 340 kg
of H2– Lifetime - 20 yrs, MACRS Schedule - 5 yrs– Capital Cost - $165,000 (year 2005 dollars)
• Tractor assumptions:– Avg. speed – 50 km/hr (30 mph)– Fuel economy – 2.6 km/L (6 mpg)– Lifetime - 5 yrs; MACRS schedule – 5 yrs– Capital Cost - $165,000 (year 2005 dollars)
• No overnight coach
H2A Delivery
Compressed Gas Truck Cost
• Scenario assumptions:– Loading time at terminal – 6 hrs– Drop-off/Pick-up time – 2 hrs
• Roundtrip Delivery Distance – 100 km– H2 Station demand – 100 kg/day– Trailers required – 16
• Compressed Gas Truck Portion of Delivered H2 Cost– $1.44/kg of hydrogen– $0.83/kg for capital, $0.04/kg for fuel, $0.56 for
other (includes labor)
H2A Delivery
Compressed Gas Truck: Delivery Distance vs. Cost
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
0 100 200 300 400 500
Roundtrip Distance (km)
Hyd
roge
n Co
st ($
/kg)
Assumptions:
Maximum Pressure: 180 atm
Station Demand: 100 kg/day
H2A Delivery
Compressed Gas Truck: Maximum Pressure vs. Cost
$0.00$0.20$0.40$0.60$0.80$1.00$1.20$1.40$1.60$1.80$2.00
0 2000 4000 6000 8000 10000 12000
Maximum Trailer Pressure (psia)
Hydr
ogen
Cos
t ($/
kg)
Assumptions:
Delivery Distance: 100 km
Station Demand: 100 kg/day
H2A Delivery
Liquid H2 Truck Delivery
• Design based upon 1 tractor and 1 trailer– Flexibility to specify 1,
2 or 3 stops• Storage assumed to
exist at delivery site• Same tractor/scenario
assumptions as gas truck delivery
H2A Delivery
LH2 Truck Delivery Cost• Trailer assumptions:
– Capacity – 17,000 gall (3,800 kg of H2)– Unloading/Loading losses – 6%– Lifetime – 20 yrs; MACRS Depreciation – 5 yrs– Capital cost - $715,000 (year 2005 dollars)
• Roundtrip Delivery Distance – 100 km– H2 Station demand – 1,500 kg/day– Number of stops – 2 per trip
• LH2 Truck Portion of Delivered H2 Cost– $0.24/kg of hydrogen– $0.13/kg for capital, <$0.01/kg for fuel, $0.11 for
other (includes labor)
H2A DeliveryCompressor (Single, Multi-stage
and Forecourt)• Based on one compressor• User can input adiabatic efficiency and have
power req. calculated, or enter power required in kWh/kg of H2
• Analysis period - 20 yrs• Compressor assumptions:
– 90% availability– Cp/Cv – 1.4 (for H2 compression)– Adiabatic efficiency – 70%– Lifetime – 5 yrs; MACRS Schedule – 5 yrs
From American Gas Compression Services website
H2A DeliveryNG Compressor Station Construction Costs
(2005$)
y = 40094x0.6674
R2 = 0.855
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
0 5,000 10,000 15,000 20,000
Compressor Power (kW)
Cap
ital C
ost (
$)
Data from Oil and Gas Journal Report on Pipelines, 2000
H2A Delivery
Capital cost of Large H2 compressors versus power (kW)
0
10
20
30
40
50
60
70
80
0 5000 10000 15000 20000 25000 30000 35000
COmpressor power (kW)
Cap
ital C
ost (
mill
ion
2000
$)
DTI (APCI) -multistageSimbeck (single stage)H2A fit to OGJ
H2A Delivery
Compressor Cost• Larger scale compressor
– Design capacity – 300,000 kg/day– Inlet pressure – 20 atm (295 psia)– Outlet pressure – 70 atm (1,030 psia)– Pressure ratio – 1.7, 3-stages
• Compressor Portion of Delivered H2 Cost– $0.12/kg of hydrogen ($21MM capital)– $0.06/kg for capital, $0.05/kg for energy,
$0.01 for other (includes labor)
H2A Delivery
Forecourt Compressor• Design parameters
– Design capacity – 1,500 kg/day– Inlet pressure – 20 atm (295 psia)– Outlet pressure – 340 atm (5,000 psia)– Pressure ratio – 2.5, 4-stages
• Forecourt Compressor Portion of Delivered H2 Cost (2 compressors)– $0.54/kg of hydrogen ($600,000 capital)– $0.35/kg for capital, $0.13/kg for energy,
$0.06 for other (includes labor)
H2A Delivery
Pipeline Delivery
• Tab does not design pipeline network for the user– Asks for
transmission, trunk and distribution details
From Praxair 2003 Annual Report
H2A Delivery
Pipeline Delivery
• Can calculate diameter or outlet pressure– Calculations based on Panhandle B
Equation
EZLTdPP
PTq
mmsc
scsc
51.0961.0
961.422
2102.1 ])([)(737γ−
=
qsc=flowrate (scfm); Tsc=temp at STP (R); Psc=press at STP.; P1=inlet press. (psia); P2=outlet press. (psia); d=diameter (in); γ=gas relative density; L=length (mi); Tm=mean temp. (R); Zm=mean compressibility factor; E=pipeline efficiency
H2A DeliveryPlot of Pipeline Material Cost vs. Pipeline Diameter
y = 572640x1.786
$0$100,000$200,000$300,000$400,000$500,000$600,000$700,000
0.00 0.20 0.40 0.60 0.80 1.00 1.20
Pipeline Diameter (m)
Pipe
line
Mat
eria
l Cos
t ($
/km
)
Data from Oil and Gas Journal Report on Pipelines, 2003
Plot of Pipeline Labor Cost vs. Pipeline Diameter
y = 722512x
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
0.00 0.20 0.40 0.60 0.80 1.00 1.20
Pipeline Diameter (m)
Pipe
line
Labo
r Cos
t ($
/km
)
H2A DeliveryPlot of Miscellaneous Pipeline Costs vs. Pipeline
Diameter
y = 228309x + 61966
$0
$100,000
$200,000
$300,000
$400,000
0.00 0.20 0.40 0.60 0.80 1.00 1.20
Pipeline Diameter (m)
Mis
cella
neou
s Pi
pelin
e C
osts
($/k
m)
Data from Oil and Gas Journal Report on Pipelines, 2003
Plot of Pipeline Right of Way Costs vs. Pipeline Diameter
y = 36451x + 21436
$0$20,000$40,000$60,000$80,000
$100,000$120,000$140,000
0.00 0.20 0.40 0.60 0.80 1.00 1.20
Pipeline Diameter (m)
Pipe
line
Rig
ht o
f Way
C
osts
($/k
m)
H2A Delivery
Pipeline: Plot of Total H2 Cost (Trans. and Trunk Dist.) vs. Design Capacity
$0.00$0.10$0.20$0.30$0.40$0.50$0.60$0.70$0.80
50,000 100,000 250,000 500,000
Design Hydrogen Capacity (kg/day)
Hydr
ogen
Cos
t ($/
kg)
Total H2 CostTransmission CostTrunk/Dist. Cost
Assumptions:
Pipeline Set-up: 100 mi Transmission, 5x5 mi trunk lines, 20x2 mi distribution lines
Diameters sized based upon pressure drops: Transmission (1,000 –700 psia), trunk (600-450 psia), distribution (400-300 psia)
H2A Delivery
Pipeline: Plot of Cost vs. Flowrate for Several Transmission Pipeline Lengths
$0.01
$0.10
$1.00
$10.00
$100.00
0 500,000 1,000,000 1,500,000 2,000,000 2,500,000
Flowrate (kg/day)
Hydr
ogen
Cos
t ($/
kg)
50 miles100 miles200 miles500 miles1,000 miles
Assumptions:
Pipeline diameter for each length calculated at maximum flowrate, assuming pressure drop of 300 psi (1,000 – 700 psi)
Diameters: 50 mi (20 in), 100 mi (23 in), 200 mi (24 in), 500 mi (32 in), 1,000 (37 in)
H2A Delivery
Liquefier
• Allows user to specify power requirement (kWh/kg of H2) or have power calculated
• Analysis period – 20 yrs
From Praxair 2003 Annual Report
H2A Delivery
Plot of Liquefier Cost vs. Capacity y = 8.5618x0.523
R2 = 0.9328
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
0 100 200 300 400 500
Liquefier Capacity (tonnes/day)
Liqu
efie
r Cos
t ($M
M,
Ref
eren
ce Y
ear
$)
Data from Taylor, 1986; Simbeck, 2002; DTI, 1997
H2A Delivery
Plot of Actual Liquefaction Energy Requirement vs. Liquefier Capacity
y = 85959x-0.1951
R2 = 0.9816
0
50000
100000
150000
200000
250000
0.01 0.1 1 10 100 1000
Liquefier Capacity (tonnes/day)
Act
ual L
ique
fier E
nerg
y R
equi
rem
ent (
MJ/
tonn
e of
H
2)
Data from Bossel et al., 2003
H2A Delivery
Liquefier – Cost
• Liquefier assumptions:– Design flowrate – 50,000 kg/day– Availability – 90%– Lifetime – 20 yrs; MACRS schedule – 15 yrs.
• Liquefier Portion of Delivered H2 Cost– $2.27/kg of hydrogen ($66MM capital)– $1.01/kg for capital, $0.95/kg for energy, $0.31 for
other (includes labor)
H2A Delivery
Liquefier: Plot of Capacity vs. Hydrogen Cost/Energy Cost
0
1
2
3
4
5
6
0 20000 40000 60000 80000 100000 120000
Liquefier Capacity (kg/day)
Hydr
ogen
Cos
t ($/
kg)
Total Liquefier CostEnergy Cost
H2A Delivery
Bulk Liquid Hydrogen Storage
• Allows user to size storage based on system throughput and days of storage, or system throughput and tank size
• Analysis period –20 years
H2A Delivery
Plot of Liquid H2 Storage Cost vs. Capacity y = 0.0321x + 0.8174
R2 = 0.8638
0
5
10
15
20
0 100 200 300 400 500
Storage Capacity (tonnes)
Stor
age
Cos
t ($M
M, Y
ear
2005
$)
Data from Taylor, 1986; Simbeck, 2002; DTI, 1997
H2A Delivery
Bulk Liquid Hydrogen Storage
• Liquid Storage:– Design capacity – 50,000 kg/day, 2 days storage– Useable portion of tank – 90%– Boil-off – 0.25%/day– Lifetime – 20 yrs; MACRS Schedule – 7 yrs.
• Bulk Liquid Hydrogen Storage Portion of Delivered H2 Cost– $0.08/kg of hydrogen ($4MM capital)– $0.06/kg for capital, $0.02 for other (includes
labor)
H2A Delivery
Compressed Gas Storage (Tubes)
• Allows user to size storage based on system throughput and days of storage, or system throughput and tank size
• Analysis period –20 yrs
From Linde website
H2A Delivery
Compressed Gas Storage - Costs
• Key assumptions:– Design Flowrate – 50,000 kg/day, 2 days storage– Max. Pressure – 415 atm (6000 psia)– Min. Pressure – 10 atm (150 psia)– Lifetime – 20 yrs; MACRS Schedule – 15 yrs.– Capital cost – based on quote for 358 kg tank for
$127,000, 0.8 scaling factor• Compressed Gas Storage Portion of
Delivered H2 Cost– $0.30/kg of hydrogen ($17MM capital)– $0.24/kg for capital, $0.06 for other (includes
labor)
H2A DeliveryForecourt Compressed Gas
Storage - Costs• Key assumptions:
– Design flowrate – 1,500 kg/day, 2 days storage– Max. Pressure – 415 atm (6000 psia)– Min. Pressure – 10 atm (150 psia)– Lifetime – 20 yrs; MACRS Schedule – 15 yrs.– Capital cost – based on quote for 358 kg tank for
$127,000, 0.8 scaling factor• Compressed Gas Storage Portion of
Delivered H2 Cost– $0.34/kg of hydrogen ($790,000 capital)– $0.26/kg for capital, $0.08 for other (includes
labor)
H2A Delivery
Geologic Compressed Gas Storage• Based on natural gas cavern storage
– Data came from Saltville Salt Cavern project
Geologic H2 Storage Cavern
Compressors
H2 Pipeline
H2A Delivery
Geologic Compressed Gas Storage• Based on natural gas cavern storage
– Data came from Saltville Salt Cavern project• Compressors can fill cavern/dispense to
pipeline– Designed based on greater pressure ratio– Designed to handle complete flowrate, but operate
differently• Cavern completely filled, then completely
emptied
H2A Delivery
Geologic Compressed Gas Storage
• Key assumptions– Max. cavern pressure – 125 atm (1,850
psia)– Min. cavern pressure – 20 atm (300 psia)– Design flowrate – 500,000 kg/day, 10 days
storage– Time to fill cavern – 15 days– Time to drain cavern – 10 days
H2A DeliveryGeologic Compressed Gas
Storage - Cost• Economic parameters
– Analysis period – 20 years– Compressor lifetime – 5 yrs.; MACRS
Depreciation Schedule – 5 yrs– Cavern lifetime – 20 yrs.; MACRS Depreciation
Schedule – 15 yrs• Compressed Gas Storage Portion of
Delivered H2 Cost– $0.46/kg of hydrogen ($0.39 for
compressors/$0.07 for cavern)– $0.39/kg for capital, $0.01 for energy, $0.06 for
other (includes labor)
H2A Delivery
Geologic Storage: Refills per year vs. Hydrogen Cost
$0.00$0.50$1.00$1.50$2.00$2.50$3.00$3.50$4.00$4.50$5.00
0 2 4 6 8 10 12 14
Cavern Cycles per Year
Hyd
roge
n C
ost (
$/kg
)
Assumptions:
Time to refill – 15 days
Time to empty – 10 days
H2A Delivery
Compressed Gas Terminal
• Designed like mini-scenario• Setup
Compressed Gas Storage
Truck Loading Compressors
Storage Compressor
H2 Central Production Facility
Truck Loading
H2A Delivery
Compressed Gas Terminal (cont.)• Truck loading
compressors: 2, each designed at 75% of total terminal capacity
• Storage compressor: 1, designed for filling storage tank in 1 day
• Analysis period – 20 yrs.
H2A Delivery
Compressed Gas Terminal - Costs• Key assumptions:
– Storage press. – 6,000 psia– Compressor adiabatic efficiency – 70%– Compressor lifetime – 5 yrs– Storage lifetime - 20 yrs– Truck filling time – 6 hours
• Compressed Gas Storage Portion of Delivered H2 Cost– $0.89/kg of hydrogen ($0.64 for
compressors/$0.25 for storage)– $0.59/kg for capital, $0.16 for energy, $0.14 for
other (includes labor)
H2A Delivery
Liquid H2 Terminal
• Designed like mini-scenario• Setup
Liquid H2 Storage
Cryogenic Pumps
Liquid H2 Delivery
Truck Loading
H2A Delivery
Liquid H2 Terminal
• Liquid hydrogen pumps – 2 cryogenic pumps, each designed at 75% of the total terminal capacity
• Key assumptions:– Design flowrate – 500,000 kg/day; 5 days
of storage – Boil-off – 0.25% per day– Lifetime – 20 yrs; MACRS Schedule – 15
yrs
H2A Delivery
Liquid H2 Terminal - Costs
• Key assumptions (continued):– Truck filling time – 3 hours
• Compressed Gas Storage Portion of Delivered H2 Cost– $0.20/kg of hydrogen ($89MM capital for storage,
$7MM for low temperature pumps)– $0.15/kg for capital, $0.05 for other (includes
labor)
H2A Delivery
Conclusions
• Spreadsheet model has been developed to calculate cost, in $/kg of H2, for delivery components
• Based on fixed charge rate financial analysis method
• Meant to model static delivery cases• Base case assumptions introduced
– Detailed cost curves, based on vendor, literature data, developed for some components