A Provaris Energy Techno-Economic Study #4
Compressed Hydrogen
An energy efficient bulk-scale carrier for green hydrogen
In September 2024, Provaris announced the completion of its ‘Concept Design Study’ for bulk-scale hydrogen export and import compression facilities. The findings reaffirmed the low energy use and low capital of Provaris’ compressed hydrogen supply chain for regional marine transport of hydrogen in gaseous form.
A leading original equipment manufacturer of high-pressure compressor equipment (Compressor OEM) supported the preparation of this Study with the selection of optimal compression equipment to illustrate a high technical readiness and economic feasibility.
Why did compression beat ammonia as an efficient low-cost carrier of green hydrogen?
The outcomes demonstrate the efficiency and cost benefits of compressed hydrogen produced in Norway delivered to Rotterdam from a 540MW capacity reservation export site, producing 87,000 tpa of hydrogen, for export using Provaris’ H2Neo carriers over a distance of 1,000 Nm.
50%
Energy efficiency across the entire production and supply chain (generation, production and delivery). Compression delivered 50% more gaseous hydrogen volume compared to ammonia + cracking back to hydrogen.
Vol
50%
Energy efficiency across the entire production and supply chain (generation, production and delivery). Compression delivered 50% more gaseous hydrogen volume compared to ammonia + cracking back to hydrogen.
20%
Based on an IRR of 12% (all equity, pre-tax), over a 20 year supply term, compressed hydrogen showed a 20% lower delivered hydrogen price to the customer compared to ammonia + cracking back to hydrogen.
20%
Based on an IRR of 12% (all equity, pre-tax), over a 20 year supply term, compressed hydrogen showed a 20% lower delivered hydrogen price to the customer compared to ammonia + cracking back to hydrogen.
Price
20%
The compressed hydrogen production and supply chain delivered a 20% lower capital cost intensity on a Euro per kg of hydrogen delivered basis compared to ammonia + cracking back to hydrogen.
Capex
5–10x
Compressed hydrogen production and supply chain provides the developer with a material increase in the net-back price of H2 and project NPV, compared to ammonia + cracking back to hydrogen.
Value
The results support hydrogen export feasibility studies being undertaken for sites identified in Norway and the Nordics along with import site locations such as Port of Rotterdam as part of our collaboration with Global Energy Solutions.
The comparison between compressed hydrogen vs ammonia supply chains is illustrated below, for both delivered volume and delivered price to the customer, in addition to the simplicity of import infrastructure required for gaseous hydrogen.
Low Energy Content of Compression – So What?
While much has been made of the low energy content of hydrogen in compressed form vs. liquid or ammonia form, Provaris argues that the real question is “are the costs and energy use/losses associated with such converting hydrogen to i) ammonia and then crack back to hydrogen; or ii) liquefy and then regassification - really worth it to just increase the energy content of hydrogen for shipping?”.
Our strategy is to be the first-mover in regional supply of green hydrogen to support industrial decarbonisation
“Compression for the marine transportation of hydrogen is the simplest and most cost-effective option for regional distances. The entire value chain from renewable generation to delivery to the customer needs to be analysed to provide the true picture – exactly what Provaris’ ‘Hydrogen Marine Transport Comparison Report’ and “Concept Design Study (Compression)” have achieved.”
Product Development Director
For more information please contact info@provaris.energy with your questions.