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NETL releases techno-economic tools to model H2 pipeline transport costs

NETL has released two innovative cost models designed to calculate the expenses associated with transporting pure H2 using new pipelines and natural gas blended with H2 through existing natural gas pipelines. These critical tools will help stakeholders involved in the burgeoning H2 economy make better-informed decisions that contribute to the nation’s decarbonization goals.

For example, these tools could be used by entities involved in H2 hub projects recently selected by the U.S. Department of Energy (DOE) and funded by the Bipartisan Infrastructure Bill. The hubs will accelerate the commercial-scale deployment of clean H2 and help to generate clean, dispatchable power; create a new form of energy storage; and decarbonize heavy industry and transportation. Accurate estimates of transport costs by pipeline could play a critical role in the success of these projects, where connecting H2 producers with H2 users is a key element of their success.

The Office of Fossil Energy and Carbon Management (FECM)/NETL H2 Pipeline Cost Model (H2_P_COM), is a Microsoft® Excel-based tool that estimates costs for transporting gaseous H2 in a new pipeline from a source, such as a H2 production facility, to a final destination, which may be a user of the H2 or a distribution center where H2 in the pipeline is diverted to multiple end users. The user specifies input values, such as the average annual H2 mass flowrate, capacity factor, pipeline length, elevation change along the pipeline, the number of compressor stations, years of operations, and several financial variables including the price charged to transport H2. The model generates revenues and costs for the pipeline and calculates the net present value (NPV) for the project where an NPV greater than zero indicates the price charged is high enough to cover all costs including financing costs.

The FECM/NETL Natural Gas with H2 Pipeline Cost Model (NG-H2_P_COM), is a Microsoft Excel‑based tool that estimates the costs of upgrading existing natural gas pipelines so the pipelines can be used to transport natural gas blended with up to 20% to 25% H2. The cost for upgrading an existing natural gas pipeline depends on the condition of the pipeline and the fraction of H2 in the natural gas. If the percent of H2 in the natural gas is less than 5%, some existing natural gas pipelines can transport the mixture with no upgrades. For mixtures approaching 25%, an existing natural gas pipeline may require all compressors and some pipe segments to be replaced. The user of the model must specify the upgrades needed and the model will calculate the costs of the upgrades and the cost of operating the pipeline.

As part of the development of NG-H2_P_COM, the development team released a document that compared results from NG-H2_P_COM with results from another techno-economic modeling tool developed by the National Renewable Energy Laboratory called BlendPATH. The two models were run with the same or similar inputs and the resulting costs and cash flows were compared. There was reasonable agreement of the results between the two models.

The release of these two tools underscores the continual enhancement of NETL’s techno-economic analysis capabilities and will support the development of new supply chains and decarbonization technologies needed for the clean energy transition.