Compressed hydrogen is energy-efficient supply chain, Provaris’ study says

Australia-based Provaris Energy has completed a concept design study that, according to the company, reaffirms the low energy use and low capital of its compressed hydrogen supply chain for regional marine transport of hydrogen in gaseous form.

The study was based on a 540 MW capacity reservation export site, producing 10 tonnes of hydrogen per hour, with an intra-Europe shipping distance of 1,000 nautical miles using the H2Neo carrier to deliver gaseous hydrogen to the customer at 70 barg, Provaris revealed, adding that an original equipment manufacturer (OEM) of high-pressure compressor equipment supported the study’s preparation.

As per Provaris, key outcomes of the study include:

• reconfirmed low energy use with only ~1.5 kWh/kg of hydrogen required for storage and loading compression (export terminal), and only 0.2 kWh/kg for unloading compression (import terminal);
• compression energy use represented only ~2.8% (15 MW) of all power requirement for the export site, with the remaining 97.2% (525 MW) available for hydrogen production (via electrolysis);
• concludes that compression has up to five times less energy use than required for ammonia synthesis (7.5 kWh/kg hydrogen or 65 MW), leaving only 470 MW available for electrolyzers after ammonia synthesis;
• the capital cost of compression facilities was €120 million, representing less than 7% of the total capex of the hydrogen supply chain;
• the low energy use of compression, with little or no hydrogen losses, results in ~50% greater hydrogen volumes delivered to the customer when compared to ammonia supply;
• supported by the study scope and outcomes, compression’s “superior” capital and energy efficiency could result in a ~20% lower delivered price at €6/kg compared to regional supply ammonia post cracking back to hydrogen at €7.4/kg; and
• Europe’s recent H2Global and EU Hydrogen Bank auction results allocating €1.1 billion in funding to green ammonia and hydrogen projects demonstrated a hydrogen supply cost range of €6-10/kg, further highlighting the competitiveness of compression.

Garry Triglavcanin, Provaris’ Product Development Director, commented: “The Concept Design Study reconfirmed the superior energy efficiency and low capital cost associated with compression for marine transportation of hydrogen. It is pleasing to receive detailed costings and equipment selection from the Compressor OEM, supporting our development case in Europe.”

“This Study has increased our confidence and understanding that many regional-European sites with a material level of renewable power reservation can significantly benefit from compression, when compared to the alternative of converting hydrogen into ammonia for marine transport. The benefits of compression include delivering more hydrogen in volume, using less capex, and boosting the financial returns to the producer whilst maintaining a highly competitive delivered cost to the customer.”

To remind, in its 2023 Hydrogen Marine Transport Comparison report, Provaris found that compression is a viable alternative and low-cost delivery method for the regional transport of hydrogen. The report explored the delivery cost of hydrogen for three hydrogen energy vectors (compression, liquefaction and ammonia) when integrated with a variable renewable energy profile to produce hydrogen.