On-Site Hydrogen Production via Distributed Methane Pyrolysis

Abstract

Current clean hydrogen production technologies are most affordable as large-scale centralized facilities, but current transportation and storage options can make hydrogen cost-prohibitive for small-scale and intermittent consumers. For these customers, a distributed hydrogen production method may be more desirable. A novel method for producing low-emissions hydrogen from natural gas, known as methane pyrolysis, is unique in that it can be scaled down more economically for use in distributed hydrogen applications. This paper describes an analysis of the economic viability and technical feasibility of three companies developing this technology across several small-scale and intermittent consumer applications. Three markets were identified where distributed methane pyrolysis is the lowest cost solution – hydrogen refueling stations, small-scale and intermittent industrial hydrogen consumption, and power generation for critical infrastructure located in areas with highly variable electricity prices. Distributed methane pyrolysis has the potential to provide small-scale and intermittent consumers with low-emissions hydrogen for as little as $1.70/kg H₂. This is significantly lower than the estimated delivered clean hydrogen cost of $7.36/kg H₂ for green hydrogen produced at a centralized production facility. Costs could also be further reduced by any available low-carbon economic incentives at the time and place of production. Widespread deployment of this emerging technology can further decarbonize the global economy while leveraging already existing natural gas networks.