FACULTAD DE QUIMICA E INGENIERIA QUIMICA

ESCUELA ACADEMICA PROFESIONAL DE

INGENIERIA QUIMICA

PROJECT:

Cost evaluation of large scale hydrogen

production for the aviation industry

Professor: Nerida Gladys Falconi Falconi

Course: Technical English

Students: - Rodriguez Romero, Edgar

- Zuñiga Balvin, Owen

- Garcia Hancco, Juan Diego

- Anghy Cuba B.

Ciudad Universitaria, diciembre del 2015

 Abstract

To address both economic and environmental problems, recently innovative aircraft

"Clip-Air" which is based on one wing design and multiple passengers and / or cargo
ships which operate on the basis of liquid hydrogen (LH2) were created .

The aim of this study is to evaluate the daily fuel requirement of a small fleet of Clip-Air
and to select the most appropriate solution for their generation. Finally a production
plant was designed to evaluate the different costs associated with cryogenic fuel
preparation.
 TABLE OF
CONTENTS

Table of contents

1 Introduction 2

2 Fuel assessment 3
2.1 Scenario ........................................................................................... 3
2.2 Hydrogen assessment ..................................................................................3
2.3 Conclusion ........................................................................................ 4

3 Production technologies 4
3.1 Fossil fuels ........................................................................................... 4
3.2 Renewable energies ........................................................................ 5
3.3 Technology selection ....................................................................... 8

4 H2 Production plant design 9

4.1 Copper-chloride cycle step number .................................................. 9
4.2 Four-step copper-chloride cycle ....................................................... 9
4.3 Complementary utilities ................................................................ 13
4.4 Energy requirements ...................................................................... 14
4.5 Production plant cost ................................................................... 16
4.6 Conclusion ........................................................................................ 19

5 Delivery costs 20
5.1 Delivery methods............................................................................ 20
5.2 Methods selection ........................................................................... 21
5.3 Delivery cost assessment................................................................. 22
5.4 Conclusion ........................................................................................ 22

6 Conclusion 23
6.1 Hydrogen cost ................................................................................ 23

7 References 24

1
 1
INTRODUCTIO
N

1. Introduction
Since its inception in the last half century, the commercial air transportation has grown steadily
worldwide, developing himself into a kind of safe, convenient and fast transport. The economic
liberalization of the airline industry that has gradually spread across all countries since the
1980s, has generated an aggressive market with low entry barriers and an extremely high level
of competition. The resulting drop in airfares enabled some companies to reach a wider range
of customers, making air travel more accessible to the general public.
However, with regard to environmental issues of the day, the aviation industry is required to
react; to produce more and more-efficient aircraft. Recent designs such as the Boeing 787 and
Airbus 350 have proven feasible improvements through the introduction of composite materials
in most parts of the fuselage and wings.

However, these innovative improvements are considered insufficient for agencies such as NASA
and the Advisory Council for Aeronautics Research in Europe (ACARE), leading to an overall
increase in demand for fuel. For these ecological and economic reasons, ACARE has focused on
the following objectives for 2020:
• Lower CO2 emissions by 50%
• Low NOx emissions by 80%
• Increase transport capacity
• Increase Design aircraft safety
• Reduce air noise pollution by 50%

In connection with these objectives, the new concept of aircraft Clip-Air has been designed.
Unlike traditional aircraft designs, it consists of one wing under which up to three capsules can
be joined. Due to the lower friction of the wing shape and the resulting high modularity,
significant fuel savings will be achieved with these types of aircraft. Indeed, the ability of
aircraft can be modified instantaneously by removing or adding a capsule passenger load just
before flight.

To further reduce the production of harmful emissions, we are studying the feasibility of using
liquid hydrogen (LH2) as fuel substitute. Since hydrogen is an unstable element, yet it exhibits
strong challenges for many stages of production, transport and storage. This report reviews the
different existing technologies for hydrogen generation and tries to give a preliminary
assessment of costs for a specific case, when used in the airline industry.

Figure 1.1: The Clip-Air aircraft

2
 2 FUEL
ASSESSMENT

2 Fuel assessment
The objective of this paper is to evaluate the costs of producing hydrogen for use in
commercial air transport, enn instead of analyzing the different technologies and processes
for hydrogen generation.

2.1 Scenario

In order to predict the social and economic impact of the concept of Clip-Air in the airline
industry, has developed several model scenarios travez different parameters such as the size
of the network, fleet and plans, the study led to the advantages and disadvantages of this
significant new aircraft concept.

When the plane clip-Air is not, which have been given the similarities with A320 fuselage
almost identical. By using the weight difference Clip-Air and the relative abilities of A320, fuel
consumption (proportional increase / decrease) can be defined according to Table 2.1, Clip-
air is lighter than the respective number of A320 when flying with three capsules, but heavier
when you're flying with less capacity.
Table 2.1: Clip-Air and A320 specific weight

Clip-Air A320
Total seat capacity 450 150
Turbofans [-] 3 2
[-]
Maximum takeoff 1 139 78
weight [mt] plane/capsule
2 (+78%)
173.5 156
planes/capsul
3 (+11%)
208 (-11%) 234
es
planes/capsul
es
2.2 Hydrogen assessment
To determine the daily use of LH2, an energy balance is performed by using the
requirements defined Jet-A for the given scenario. Therefore, it is assumed that turbofan
engines consume the same amount of energy and also the lowest density of liquid hydrogen
leads to a lower overall aircraft weight and thereby influences the consumption assessment.
Property evaluation and hydrogen fuel presented in Table 2.2

Table 2.2: Hydrogen assessment

Fuel properties [12]

Jet-A LH2
Specific density ρ at boiling point 790- 71
Specific
[kg/m3] energy a [MJ/kg] 43.2 120
808
Fuel consumption Jet-A LH2
Short-haul return flights [mt day−1] 116.1 41.8
Medium-haul return flights [mt 187.7 67.6
day−1weight
Total ] [mt day−1] 303.8 109.4
Total volume [m3 day−1] 380.2 1540.8
Total energy [MWh day−1] 3646

3
2 FUEL
ASSESSMENT

4
 3 PRODUCTION
TECHNOLOGIES

2.3 Conclusion
Based on various economic solutions, specific parameters such as the type of network,
operating strategy and fleet size were selected. Accordingly, the daily use of liquid hydrogen
to the resulting model amounts to 109.4 mt. A 10% margin is added to this value to consider
leakage losses, transport and evaporation, thus leading to a total requirement of 120 mt
day−1 (4000 MWh day−1).

3. Production technologies
Since hydrogen is an abundant element, various raw materials can be utilized for generation.
Today, it is mainly generated by the use of processes involving fossil fuels like coal and
natural gas. However, taking into account both greenhouse gases minimal ecological impact
and the limited resources available, the present ways of production are highly sustainable.

3.1. Fossil fuels

Presently, most hydrogen is produced by using fossil fuels such as natural gas, coal and
other hydrocarbon fuels. The chemical processes required for hydrogen generation form
these feed- stocks are highly developed and well-known today. Due to the mature
technology and the strong market position of fossil fuel based hydrogen production, the
resulting costs are extremely low relative to other sources.

3.1.1 Natural gas

In order to convert natural gas (NG) to hydrogen, several different chemical processes can
be used such as:
• Steam reforming
• Partial oxidation
• Autothermal reforming

In steam reforming, methane is combined in an endothermic process with steam in order to

generate a synthetic gas which is largely composed of carbon monoxide and hydrogen (3.1).
The heat required for the methane-steam reaction is often supplied through combustion of
some of the available natural gas. Finally, the CO present in the syngas is further converted
to carbon dioxide and hydrogen by using the CO shift reaction (3.2).
CH4 + H2O −−→ CO + 3 H2 (3.1)
CO + H2O −−→ CO2 + H2 (3.2)

CH4 + 12 −−→ CO + 2 (3.3)

O2 H2

Cost Since methane steam reforming and partial methane oxidation are well-developed pro-
cesses, the cost of hydrogen production is highly depend on the cost of natural gas. The
following equation proposed by presents this relationship as follows:

H2[$/kg] = 0.286 × NG price[$/MMBtu] + 0.15 (3.4)

5
 3 PRODUCTION
TECHNOLOGIES
Given the NG price of 13.2$/MMBtu (45$/MWh), the hydrogen production cost reaches 3.93$/kg.

6
 3 PRODUCTION
TECHNOLOGIES

3.1.2 Coal
Coal can be converted to hydrogen by a variety of endothermic gasification processes; fixed
bed, fluidized bed and entrained flow (Figure 3.1). The selection of appropriate technology
depends on several parameters such as the size of the reactor, the gas utilization and quality
desired. Large-scale applications, such as a power plant IGCC (integrated gasification
combined cycle) require a high and stable conversion rate and therefore fluidized bed or
entrained flow gasifiers are the most appropriate solutions.

Figure 3.1: Gasification processes for coal

C + H2O - → CO + H2 (3.5)

Cost of hydrogen generation coal gasification is a mature technology and commercially

available. However, the cost of different plants varies widely, as the combined cycle (CC) fuel
cells and solid oxide (SOFC). In order to reduce emissions of greenhouse gases, these plants
can be equipped with a carbon capture system, further increasing production costs. The total
cost of hydrogen production has an approximate cost of $ 1.83 / kg.

3.2. Renewable energies

As increases in the global demand for fossil fuels, alternative to conventional hydrogen
production pathway should be considered to address both economic and environmental
problems. Indeed, the costs of fossil fuels are steadily growing, while improving and recent
technological developments have reduced the cost of using renewable energy sources.
Therefore, this section presents and compares the different processes able to use alternative
energy sources for generating hydrogen to select the most appropriate solution.

3.2.1 Water electrolysis

The electrochemical reaction of water electrolysis (3.6) is a well-established technique which
consists of splitting water into its single components by using electrical energy. Therefore, if
the energy source produces no carbon compounds for the required power generation, then
the entire production process is carbon free.
1
H2O −−→ H2 + 2O (3.6)

7
 3 PRODUCTION
TECHNOLOGIES
2

Alkaline electrolysis well-developed technology which uses an aqueous solution (KOH or

NaOH) as electrolyte. During the process , water at the cathode consumes electrons to form
hydrogen. Hydroxide ions are migrating through the solution towards the anode at which
they release electrons and consequently, close the cycle. A diaphragm which separates both
electrodes and their respective reaction enables to collect the generated gases afterwards.
Cathode 2 H2O+ + 2 e− −−→ H2 + 2 OH− (3.7a)
1
Anode 2 OH− −−→ + H 2 O + 2 e−
2
O2 (3.7b
)
1
Sum H2O −−→ + (3.7c)
2
O2 H2

However, despite these attractive features, some disadvantages are generally associated
with alkaline electrolysis. In fact, the diaphragm is not completely impermeable to gases
generated highly influences the efficiency of the system since oxygen will react with the
hydrogen present at the cathode to form water again.

Polymer electrolyte membrane electrolysis PEM electrolyzer use a solid polymer mem-
brane as electrolyte which highly improves the conductivity issues related to the utilization of
a liquid electrolyte. During operation, the water is decomposed at the anode where it
releases electrons in order to form oxygen and hydrogen ions. After crossing the separation
mem- brane, the protons are combined with the supplied electrons to produce the desired
hydrogen gas which can be easily collected afterwards.

3.2.2 Thermochemical water splitting

Thermochemical water splitting water is a thermally driven process that converts water into
hydrogen (and oxygen) through different chemical reactions. Since no electric power is
required, the heat source of high temperature (solar, nuclear) can be used directly for the
generation of hydrogen and thus improve the overall efficiency of the conversion cycle.
Indeed, taking into account typical electrolyzer efficiency values and heat-to-electricity of
80% and 35% respectively, the ratio of hydrogen-A- heat conversion reached only 28%.
• Sulfur - Iodine
• Hybrid Sulfur

8
 3 PRODUCTION
TECHNOLOGIES
• hybrid copper chloride

Sulfur - Iodine The sulfur-iodine cycle consists of three different sections and hydrogen
efficiency heat-A- iodine sulfur cycle is expected to reach more than 40% (34% if the
hydrogen LHV), depending the peak temperature of the decomposition reaction.

Bunsen reaction section I2 + SO2 + 2 H2O - H2SO4 → 2 HI (3.10a)

Section II decomposition of sulfuric acid H2SO4 - H2O → SO2 + O2 + H20 (3.10b)
Section III of iodine hydrogen decomposition 2 HI → H2 + I2 (3.10c)

The water input is injected into the Bunsen reactor which operates at 100◦C and releases
heat which can be recovered and used elsewhere in the cycle (Figure 3.6). The output
stream is then separated into two streams, the aqueous sulfuric acid flow and the hydrogen
iodine solution. In the second section, the sulfuric acid is recycled at 850◦C by being
decomposed into sulfur dioxide and water which are then fed into the Bunsen reactor again.
Finally, the hydrogen iodine is split into the desired hydrogen and iodine at 450◦C in the last
section of the cycle.

Sulfur Hybrid The sulfur acid hybrid thermochemical cycle (SAHT) is composed of only two
distinct sections. The SAHT cycle is ”hybrid” due to the second production step (3.11b) which
consists of an electrochemical reaction. Similarly to the sulfur-iodine cycle, the SAHT
cycle is expected to be very efficient which makes it extremely attractive for large scale
hydrogen production.

Hybrid Copper Chloride The hybrid copper-chloride cycle is a recent thermochemical cycle
which exists in various types, depending on the different intermediate reaction steps.
highly influences large-scale design challenges and the overall efficiency of the setup.
Indeed, multiple studies have shown major 9economical and technological advantages and
drawbacks related to the increase/decrease of process steps.
3 PRODUCTION
TECHNOLOGIES

10
 3 PRODUCTION
TECHNOLOGIES

3.3 Technology selection

The different hydrogen generation processes being presented, the most suited production
type need to be selected in order to design and evaluate both the thermal and electrical
requirements of the plant. Table 3.2 synthesizes the different benefits and drawbacks of
each conversion. Since the production should be entirely driven by renewable energy
sources, conventional conversion processes from fossil fuel based feedstocks, such as coal
and natural gas, are not considered in this study.

Given the objective of this paper, following parameters need to be considered during the
technology selection:
• Large scale production
• High efficiency
• Long system lifetime
• No important safety issues
• Low operating and capital costs

Regarding the different characteristics of each conversion process, the copper-chloride ther-
mochemical cycle is selected. Indeed, both the sulfur-iodine and the SAHT cycle are rejected
due to safety issues (large scale handling of hazardous chemicals such as H2SO4, SO4, HI, I2)
and the high graded heat requirements for the sulfuric acid decomposition. Since only
concentrated solar energy is able to generated these high temperatures (nuclear power does
not fall into the category of renewable energy sources), a thermal storage utility need.

Finally, both alkaline and PEM electrolysis are rejected due to their lower conversion efficiency
and short stack lifetime respectively. Consequently, solely the Cu-Cl cycle is considered for
hydrogen production
.

11
 4 H2 PRODUCTION PLANT DESIGN

4 . H2 Production plant design

The production technology is selected, the hydrogen conversion plant has to be modeled to
assess their minimum energy requirements (MER) and capital expenditures. This chapter
presents the different steps and assumptions made during the design process and cost
estimates.

4.1 Copper-chloride cycle step number

As presented above, there cycle and copper chloride in different types characterized mainly
by the number of main steps and reaction taking place. The five-step cycle is considered to
be the standard form of the Cu-Cl cycle of family and often used as a baseline for
comparison agmong cycles with numbers underpasses. The main advantages and
disadvantages of fewer step are:

• Advantage
- Less equipment challenges materials
- Fewer steps, less equipment
- Reducing complexity

• Disadvantages
- Higher degree of heat and intensity
- More equipment materials challenges
- Poor performance of the reaction (undesirable side products)
- Efficiency Low

As for the multiple benefits and disadvantages of the change step number, only the cycle of
copper chloride and four steps will be studied, as it represents the best compromise between
thermal efficiency and viability. The main reactions occurring in a cycle of four steps are
presented in Table 4.1.

Table 4.1: Chemical reactions in a four-step cycle Cu-Cl

Step Reaction Temperature [K]

I 2 CuCl(aq) + 2 HCl(aq) −−→ 2 CuCl2(aq) + <373.15
H2(g) CuCl2(aq) + nf H2O(l) −−→ CuCl2 · nhH2O(s) +
II 303.15-353.15
III (nf −n·h)H
CuCl n 2HOO(s) + H O(g) −−→ Cu OCl (s) + HCl(g) + 673.15
2 h 2 2 2 2
IV n hH
Cu2OCl2(s) −−→ O(g)
22CuCl(molten) 1
2 + O(g) 823.15

4.2 Four-step copper-chloride cycle

The four-step copper-chloride cycle is composed of one electrochemical and three
thermochemical reaction: (I) electrolysis, (II) crystallization, (III) hydrolysis and (IV)
oxychloride decomposi- tion. Figure 4.1 presents the operating principle of the selected Cu-
Cl cycle type.

12
 4 H2 PRODUCTION PLANT DESIGN

Section I H2(g
Electrolysis ) CuCl(s
)
2 CuCl(aq) + 2 HCl(aq) −−→ 2 CuCl2(aq) +
H2(g) H2 HCl(a
q)
O

Section II CuCl2(a
Crystallizer
q)
CuCl2(aq) + nf H2O(l) −−→ CuCl2 · nhH2O(s) + (nf
−nh)H2O

Section III CuCl2(

Hydrolysis
s)
2 CuCl2 · nhH2O(s) + H2O(g) −−→ Cu2OCl2(s) + 2 HCl(g) +
nhH2O(g)

Section IV Cu2OCl2( H2
Decomposition O
s)
1
Cu2 OCl
2 (s) −−→ 2 CuCl(molten)
2 +
O(g
)

O2(g
)
Figure 4.1: Operating principle of a four-step copper chloride cycle

4.2.1. Electrolysis
In the first section, hydrogen is produced from an electrochemical reaction of hydrogen
chloride and copper(I) chloride. At the anode, the copper ion Cu(I) is oxidized to Cu(II) while
at the cathode, hydrogen ions H+ are reduced in order to form the desired product.

Anode 2 HCl(aq) + 2 CuCl(aq) −−→ 2 CuCl2(aq) + 2 H+(aq) + 2 e− (4.1a)

Cathode 2 H+(aq) + 2 e− −−→ H2(g) (4.1b)
Sum 2 HCl(aq) + 2 CuCl(aq) −−→ 2 CuCl2(aq) + H2(g) (4.1c)

The copper(I) chloride which is dissolved in a hydrogen chloride solution, is pumped to the
anode side of the electrolyzer, whereas an aqueous HCl solution is fed to the cathode
section. Hydrogen ions migrate through the membrane, from the anode to the cathode
where they react with the available electrons in order to form hydrogen gas. The produced
aqueous CuCl2 is then collected and send to the crystallization unit.

13
 4 H2 PRODUCTION PLANT DESIGN

2e
−
Anode + Cathode -

CuCl2(aq) + H2(g)
H+

H+(aq)
2
H+(aq)

CuCl(aq) +

HCl(aq)

Proton conducting membrane

Figure 4.2: Operating principle of the CuCl/HCl electrolysis

4.2.2 Crystallization
The anode outlet stream flows from the electrolyzer system to the next section which is the
crys- tallization unit. Two existing drying methods are considered for this process step; spray
drying and crystallization. In order to classify each solution, two important parameters have
been identified.
The first variable, the amount of water in the aqueous solution of CuCl2 is represented by nf
(Table 4.1) which has a minimum value of 7.5 if the solution is saturated. The second
variable nh denominates the hydrate water quantity in the dry copper(II) chloride. It can
vary from 0, when the CuCl2 exists in anhydrous form after drying, to 4. Obviously, the value
of nh highly depends on major parameters such the drying method and their operating
conditions (temperature, carrier gas velocity).
Table 4.2: Heat grade and quantity required for precipitate drying

Parameter Value
Heat required ∆H [kJ/kmol H2]122
Heat grade ∆T [◦C] 30 → 100

Given the lower heat grade and heat amount required, the crystallization technology has
been selected for this study. The energy requirements of the desired crystallization unit are
reported in Table 4.2.
14
 4 H2 PRODUCTION PLANT DESIGN

4.2.3 Hydrolysis
After exiting the crystallizer, the CuCl2 particles are heated up to 673 K and, in addition to
superheated steam at same temperature level, injected into the hydrolysis reactor (Figure
4.3). Due to the large pressure drop of 23 bar, the CuCl2 stream forms a free jet at the top
of the spray reactor. Since the jet expands, it aspirates the superheated steam into the jet
and hence, highly improves the heat and mass transfer between both reactants. The solid
Cu2OCl2 settles at the bottom of the hydrolysis reactor where it is removed afterwards.
Finally, the hydrogen chloride and the remaining amount of steam leave the reactor in form
of gas before being cooled for separation.

15
 4 H2 PRODUCTION PLANT DESIGN

Table 4.3: Heat grade and quantity required for the hydrolysis reaction

Parameter Value
Heat required ∆H [kJ/kmol H2]
116.
6 Heat grade T [◦C] 375

4.2.4 Decomposition
The generated copper oxychloride flows from the hydrolysis reactor outlet to the
decomposition reactor where it is decomposed into copper(I) chloride and oxygen (Figure
4.4). Before entering the reactor, the Cu2OCl2 is heated to 823 K, the temperature at which
the decomposition reaction occurs. Similarly to the hydrolysis step, the oxygen leaves the
reactor as gas (at the top) whereas the molten CuCl spills over a weir in order to be collected
and send for recycling afterwards.
Table 4.4: Heat grade and quantity required for the decomposition reaction

Parameter Value
Heat required ∆H [kJ/kmol H2]
129.
2 Heat grade T [◦C] 550

16
 4 H2 PRODUCTION PLANT DESIGN

4.3 Complementary utilities

In addition to the copper chloride, complementary utilities regarding the preparation of water
and hydrogen liquefaction should be included. Therefore a source of large water, pumped in
a first unit desalted and purified before being sent to the production plant (Figure 4.5). After
conversion, the hydrogen generated is sent to the usefulness of liquefaction in which the
product is prepared for shipping.

Overall production plant

sea purifi
wat ed H2(g H2(l
er Desalinati water Cu-Cl ) Liquefactio )
on cycle n

E˙+ Q˙+

CSP plant

Figure 4.5: Plant functional sheet

Finally, a solar energy concentration is designed with production facility in order to meet the
requirements of electrical and thermal energy system.

Water preparation unit Three main methods of preparing water desalination unit: of
multistage flash distillation, multi-effect distillation and reverse osmosis. Since reverse
osmosis (reinforced brine) has the lowest power consumption of the three processes, we
have been selected for the study of plant design.
Table 4.5: Energy requirements for the water preparation unit

Parameter Value
Conversion energy [MJ/m3] 24.2
Plant
[19] operation [h/day] 24
Daily requirements 1072.
[m 3/day] 5
Electric power required 300.4
[kWe]

Liquefaction unit In order to achieve proper hydrogen storage for large scale applications,
two major methods are considered; high compressed gas, generally up to 350-700 bar, or
liquid hydrogen (LH2). Both technologies have their advantages and disadvantages.
While the theoretical minimum energy required for liquefaction of hydrogen from near
ambient conditions (300 K, 1 atm) is 3.3-3.9 kWh / kg LH2, actual conversion requirements
17
 4 H2 PRODUCTION PLANT DESIGN
are much higher around 10-13 kWh / kg LH2 depending on the system size.

18
 4 H2 PRODUCTION PLANT DESIGN

4.4 Energy requirements

The The different steps described cycle, energy requirements, thermal and electrical, must
be determined in order to assess the MER.
Thermal Requirements In order to assess the MER, a flow chart is drawn first modeling the
main steps of the process occurring in the thermodynamic cycle considered. following
assumptions have been made:
• The Cu2OCl2 is modeled as two individual compounds, copper oxide CuO and copper (II)
chloride CuCl2. Obviously, this assumption is questionable but as the mass balance is not
altered, this assumption can be validated therefore, relative to the level of model accuracy
required for this study.

- All reactions are assumed to have a conversion yield of 1

- No pressure drops throughout the entire cycle dp = 0
- All turbines and compressors have an isentropic efficiency of ηc = ηt = 0.85
- Similarly, all pumps have a volumetric efficiency of ηp = 0.85

The resulting minimum energy requirements (MER) are reported in Table 4.7.

Table 4.7: Minimum thermal energy requirements of the production cycle

Parameter Value
High graded heat at 565 ◦C 153.39
Low graded heat at 100 ◦C 86.576
[MWh] ◦ C [m3/s] 7
Cooling
[MWh] water at 10 0.157

4.4.1 Efficiency
In order to evaluate the performance of the hydrogen production plant, the efficiency must
be defined. Hence, based on the first thermodynamic law, the efficiency compares the
produced amount of energy in form of hydrogen (based on the LHV) to the energy input of
the system (Table 4.7 and 4.9). The following equation describes the efficiency used in this
study where η=0.36 is the heat-to-electricity efficiency of the power block.

19
4
2
6
Figure 4.8: Four step Cu-Cl
cycle
4.5 Production plant cost
4.5.1 Capital cost

The investment costs of each plant unit can be defined by using relationships
based on reference data. In both cases, the capital expenses are expressed
in function of an equipment attribute A and the cost index ratio It between
the actual and reference year.

Due to the corrosive environment generated by the Cu-Cl process, the

carbon steel equipment is coated with a porcelain lining and hence, capital
costs are assumed to be increased by 20%

Heat exchanger network Since the heat exchanger network (HEN)

To assess capital expenditures HEN, composite curves are divided into

several vertical sections and then determine the heat exchanger area for
each section, the average area heat exchanger can be defined by the sum of
all areas calculated and dividing by the number of units. Assuming an equal
spacing in the area, an overestimation of the investment costs HEN can
finally generated.

Complementary utilities Similarly to the HEN cost assessment method,

the liquefaction and water preparation plant investment expenses are defined
only considering their respective output capacity cout. Consequently, the
related plant costs are solely multiplied by a multiplication factor Fmulti in
order to meet the desired utility size required for the hydrogen production.
The different parameter values are presented in Table 4.10.

Cutility = Fmulti · cout,cost [$]

Annualized capital cost After defining the capital expenses Cp for each
plant unit, the investment is annualized. Considering a given interest rate i
and plant lifetime n the annual expenses I> related to the plant equipment
cost can be defined. Finally, in order to include.

22
 Table 4.10: Complementary utility investment costs

Parameter Value
Liquefaction plant output cout [LH2 kg/d]
30’00
0 Liquefaction plant output cout,cost [M$]
40
Liquefaction plant factor F [-] 4
Preparation plant output cout [m3 /d]
31’82
2 Preparation plant output cout,cost [M$]
37.7
Preparation plant factor F [-] 0.034

All additional installation expenditure, the equipment cost is multiplied by a bar module
factor FBM
I> i(1 + i)n
direct = FBMCp (1 + i)n − 1 [$/yr]

4.5.2 Fixed Cost

The fixed expenses are upfront costs which include various indirect capital investments
such as contingency, construction permits, engineering and design.

Cfixed = cfixedcap.,totalFBMCp [$]

I> i(1 + i)n

indirect = Cfixed (1 + i)n − 1 [$/yr]

Table 4.11: Indirect capital cost factors [15]

Parameter Value
Project contingency 0.18
Upfront Permit cost 0.03
[-]
[-]
Total cfixedcap.,total [-] 0.21

4.5.3 Operating cost

Since the solely plant input is assumed to be sea water, the operating costs only
consist of operation and maintenance (O&M) expenses which incorporate labor,
property tax, insurance and replacement costs.

• Labor expenses are determined by multiplying the plant personnel number by the
average labor rate cl,plant. The required staff size can be approached by using
23
Staff = (6.2 + 31.7P2 + 0.23N)0.5 [−]
where P represents the number of steps involving solid particles handling whereas
N denominates the remaining process step number (Table 4.12). Since no specific
process diagram was generated for the water preparation unit, the labor cost is
assumed to be 0.126$ per cubic meter of water desalinated.

• Property tax, insurance and replacement cost are expressed as a function of the
direct capital expenses

Cfixedop. = cfixedop.,total FBMCp [$/yr]

where cfixedop.,total is the sum of all contributing cost factors (Table 4.12).

Considering the high annual output of gaseous oxygen co-generated with the
hydrogen pro- duction, a storage system can be designed in order to sell it as a
byproduct and hence strongly decrease the operating expenses . Indeed,
regarding the selling price of gaseous oxygen cO2 of 0.109 $/kg O25 and the
annual plant production of 346’896 mt O2/yr, a $37.8 millions income can be
included during the operating cost assessment.

OP EX = Clabor + Cf ixedop. − cO2 ṁO2 [$/yr]

Table 4.12: Operating cost factors

Parameter Value
Labor rate cl,plant 50
Property tax [-] 0.02
[$/hr]
Insurance [-] 0.06
Total cfixedop.,total [-] 0.08
Cu-Cl Cycle Liquefaction unit
Solids handling P [-] 3 0
Remaining steps N [- 12 8
]

4.5.4 Total annual cost

Finally, the total annual cost Ctotal can be determined by simply adding the annualized
direct and indirect capital expenses to the operating costs.

Ctotal = I direct + I indirect + OPEX [$/yr]

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 5 POWER SUPPLY PLANT
DESIGN

4.5.4 Conclusion
Below is a preliminary design of a hydrogen production plant based on a cycle of four
steps thermochemical hybrid copper and chloride. Table 4.12 summarizes the different
results.

Table 4.12: MER and investment costs of the overall production plant

Total annual cost MER and efficiency

Parameter Value Parameter Value
Preparation utility [M$] 1.3 Total electricity demand 145.6
Liquefaction utility [M$] 160 High graded heat demand 153.4
[MWe]
Production plant [M$] 215.5 Low
[MWgraded
th] heat demand 86.6
Total direct capital cost [M$] 376.8 [MW
Cooling
th ] water [m3/s] 0.157
Fixed cost [M$] 79.1
Interest rate i [-] 0.08
Plant lifetime n [yr] 25
Operating cost (with O2 selling) 2.27
[M$/yr]
Annualized capital cost [M$/yr] 42.7 Cycle efficiency [-] 0.305
Total annual cost [M$/yr] 45
Hydrogen production cost [$/kg 1.03 Overall plant efficiency [-] 0.26
LH2]

Interestingly efficiency calculated cycle is much less than the indicated value. However it
first involves an idealized for calculating process efficiency and hence by increasing the
complexity of the model, evaluation of the efficiency is reduced to 30%, corresponding to
the result generated.

Observation
Power supply plant design
Since the electrical and thermal energy requirements of the overall production plant have
been defined, the power plant must be designed in order to meet the necessary demands.
As the high grade heat level does not exceed the operating temperature of the thermal
storage medium - which was an important decision parameter a concentration solar power
plant is selected.
Localization: The location must meet:
• The average annual solar radiation should be high and therefore capital costs are slightly
lower
• The location must allow free access to the raw material of the plant, the seawater. After
desalination and deionization, water is used for hydrogen generation or solar panel cleaning
and therefore operating costs are much lower.
Obviously, the main drawback of the selection of this place are the shipping costs that are
substantially higher considering the means of transportation necessary in this case. It is
important to note that due to lack of time and information, the balance between capital
expenditures and shipping has not been optimized in this study.

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5 POWER SUPPLY PLANT
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 5 DELIVERY COSTS

5. Delivery costs
The production and power plants being designed, the shipping methods and related costs
must finally be evaluated in order to assess the overall cost of hydrogen production for the
given scenario.

5.1 Delivery methods

5.1.1 Pipelines
Pipelines are a well-developed delivery mode which is widely used for gaseous product
distribution, especially for natural gas. Nevertheless, since the investments costs are
extremely high, this means of transportation is solely economically attractive for very large
scale delivery. In- deed, pipeline capital expenses can be separated into two distinct groups;
material costs which directly depend on the pipeline size (i.e. diameter) and installation costs
which highly vary with various parameters.
Table 5.1: Pipeline operating and capital expenses

Parameter Value
Installation cost - rural [$/km]
300’000
Installation cost - urban [$/km]
600’000
Pipeline capital cost [$/km] 1869
(d6pipe)2 Fixed operating costs 5% of
total capital

5.1.2 Trucking
A A second hydrogen transportation type considered in this study is truck transport. The
cryogenic fuel is filled into a large cylindrical vessel which is fixed on an undercarriage of a
standard size semi-truck. The capital and operating costs related to liquid hydrogen trucks
are defined in Table 5.2.
Table 5.2: LH2 Truck operating and capital expenses

Capital expenses Operating expenses

Parameter Value Parameter Value
Truck capital cost [$] 800’000 Driver hours [hr/d] 8
Truck capacity [kg H2] 4000 Driver wage [$/hr] 28.75
Daily boil-off [kg/d] 0.3% Truck lifetime [yr] 20
Truck fuel [LH2 kg/100 km] 8.2
Fixed operating costs [$/yr] 5% of total
capital
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 5 DELIVERY COSTS

5.1.3 Shipping
Similarly to truck transport, shipping expenses can be split into two parts; capital and
operating costs.
Capital costs During the last years, LNG tanker prices have highly fluctuated, especially due
to the financial crisis which lead to a decreased demand for new vessels. Indeed, while
170,000 m3 vessel prices reached a peak value of $250 millions in 2008, mainly caused by
high steel prices, new vessel costs have sharply fallen to $203 millions by the end of 2010
(Table 5.3).
Operating costs Since LNG tankers are very sophisticated ships, operating costs (Table
6.3) which include manning, insurances and maintenance are much higher than traditional
tanker expenses, reaching $14 millions per year in 2010. In addition to these fixed operating
expenses, travel costs which take in account the marine fuel and harbor fees must be added.

Table 5.3: LH2 carrier operating and capital expenses

Capital expenses Operating expenses

Parameter Value Parameter Value
15,000 cbm Vessel cost [M$] 41 Operating costs [M$/yr]14
170,000 cbm Vessel cost 203 Travel costs [M$/yr] 12
[23]
[M$]

5.2 Methods selection

Regarding the distance between the production and consumption sites (Table 5.4), it is
obvious that the pipeline solution is much more expensive than truck and ship transport.
Indeed, the different drawbacks of using such delivery system are:
- The liquefaction plant does not need to be move, since the pipeline operates
which gaseous hydrogen.
- Undersea pipelines create additional construction costs which are extremely
difficult to assess and therefore, investment costs might be inaccurate.

In light of these results, a combination of truck transport and shipping is selected as delivery
method. Hence, the produced liquid hydrogen is assumed to be loaded on a LH2. Once
arrived, the cryogenic fuel is filled into specific trucks and routed to its final destination at the
airport.
Table 5.4: Transportation data

Parameter Value
Sea distance (Ben Gardane - 1300
Mean sea travel speed [km/hr] 30
Genoa) [km]
Land distance (Genoa - Geneva) 400
[km] land travel speed [km/hr]
Mean 80

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5 DELIVERY COSTS

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 5 DELIVERY COSTS

5.3 Delivery cost assessment

5.3.1 Shipping
The LH2 tanker capacity should reach 8450 m3 in order to satisfy the hydrogen demand
during the voyage. Since LH2 delivery would require additional costs such as thicker
insulation and different tank materials.
Since the delivered amount exceeds the daily fuel requirements of the Clip-Air fleet, two stor-
age facilities, at the production plant and the transfer harbor respectively, must be included
in the investment costs. The capital expenses can be evaluated by using the relationship
presented by:

CAPEXstorage = 1500 · V [$]

where V is the net volume in cubic meter of the storage unit.

Table 6.5: Ship capital and operating expenses

Parameter Value
Vessel Capital expenses 41
Storage capital expenses 25.36
[M$]
[M$]
Operating expense 26
[M$/yr]

5.4 Conclusion
The total investment and operation costs for the hydrogen delivery are summarized in the
following table (Table 6.7). As presented, the transportation expenses account for almost
0.89 $/ LH2 kg of the overall hydrogen cost.

Table 6.7: Overall capital and operating expenses for hydrogen delivery

Capital expenses Operating expenses

Total capital costs [M$] 90.3
Interest rate [-] 0.08
6
Project lifetime [yr] 25
Annualized capital costs [M$/yr] 8.46
Total operating costs [M$/yr] 30.3
5
Total annual costs [M$/yr] 38.81
Hydrogen delivery costs [$/LH2 kg] 0.89
Hydrogen delivery costs [$/kWh 0.028
LH2]

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 6
CONCLUSIO
N
6. Conclusion
This study highlights the different processes and their respective state of development
capable of producing hydrogen on a large scale, using only renewable energy sources.
Analysis led to the conclusion that a thermochemical cycle hybrid copper and chloride is the
best compromise between high efficiency, system life long and technological limitations -
particularly with regard to high temperature thermal storage - and therefore It was selected
for preliminary design. After determining the MER of the production plant and ancillary
facilities, plant hybrid solar concentration was designed to meet energy demand.

6.1 Cost of Hydrogen

In terms of total annual expenses related to various investment and operating costs, the
overall price of hydrogen, can finally be evaluated: $ 6.91 per kg of LH2 (or $ 207.3 per
MWh). Excluding transport costs, the price of hydrogen production, $ 6.02 kg LH2 remains
three times higher than the cost generated by using conventional raw materials such as coal.
The cost breakdown is as follows (Figure 7.1) reveals that the total annual expenses related
to the solar power plant concentration (CSPP) are the main contributing factor cost. From
the production plant (PP) costs only represent 15% of global hydrogen - 17% if the shipping
and trucking (S & T) are excluded.

the generated result shows that the use of sources renewable energy for the production of
large scale LH2 still very expensive and remains less attractive than conventional methods of
conversion.

Figure 7.1: Hydrogen price (left) and investment cost (right)

Therefore, the price of hydrogen equivalent presented above is 152% higher than the
standard aviation fuel.

In light of these results, LH2 produced from renewable energy sources remains a fuel
replacement tive unattractive for the airline industry in the short term. With rising oil prices
and declining specific costs of solar power plants, generation of alternative fuels could
become increasingly attractive in the long term. However, this study gave a first approach to
the various challenges and obstacles related to the clean production of hydrogen for a fleet
of small planes, to meet daily fuel consumption of only five Clip-Air aircraft, it is obvious that
the density the current air traffic is highly unsustainable. To achieve friendly air travel
environment in the long term, both the cost of generation of mobility and alternative fuels
must decrease.

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7. References

[1]Birelaire M Leonardi C Atasoy B, Salani M. Impact analysis of a flexible air transportation

system. EJTIR, 13:123–146, 2013.

[2]Ferguson L Pouresfandiary J Cousins A Hampton T Rosenthal P Chumbley H Ralph H

Random J Barclay J, Oseen-Senda K. Active magnetic regenerative liquefier. DOE
hydrogen programm, annual progress report, February 2010.

[3]Olson N. K Bartels J. R, Pate M. B. An economic survey of hydrogen production from con-

ventional and alternative energy sources. International journal of hydrogen energy,
35:8371– 8384, 2010.
[4]Amouyal Y Stadler P Ingram J, Nahon J. Cryogenic fuel tanks for the clip-air plane.
Bachelor project, EPFL, June 2012.

[5]Revankar T. S Kane C. Suflur-iodine thermochemical cycle: Hi decomoposition flow

sheet analysis. International journal of hydrogen energy, 33:5996–6005, 2008.

[6]Takata R Chin P Kromer M, Roth K. Support for cost analyses on solar-driven high
temperature thermochemical water-splitting cycles. Final report to the DOE, prepared by
TIAX LLC, February 2011.

[7]Clifford K. H Kolb J. G Turchi C, Mehos M. Current and future costs for parabolic trough
and power tower dystems in the us market. National Renewable energy laboratory
NREL, October 2010.

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