Initial Systemwide Capital Cost Estimate for Clean Hydrogen Electricity as a 500 MWh Baseload Plant

In 2023, the Federal Government awarded seven billion dollars to regional clean hydrogen (CH) hubs. Some states are beginning to encourage CH projects. Specifically, Colorado law defines CH projects as projects that use specific equipment, including electrolyzes and dedicated renewable energy sources for electrolysis, in addition to purchasing clean hydrogen from third parties and upgrading to a turbine at an electric generating station. This presentation develops an initial systemwide capital cost estimate for CH as a 500 MWh facility that supplies electricity to the grid on a 24/7/365 basis (Baseload Plant).

The method is based on an initial energy balance of a new 500 MW electric generation system where the energy for electrolyzes comes from new clean energy generation (50/50 wind and solar), transmission, and storage to allow for 24/7/365 operation. A storage system of ten units – one unit in operation, six units charged and ready, two units charging, and one spare unit is assumed. Based on published wind, solar, transmission, and storage capital costs, a scoping level cost estimate is then developed