Analysis of economic and infrastructure issues associated with hydrogen production from nuclear energy

Consideration is being given to the large-scale transition of the world's energy system from one based on carbon fuels to one based on the use of hydrogen as the carrier. This transition is necessitated by the declining resource base of conventional oil and gas, air quality concerns, and the threat of global climate change linked to greenhouse gas emissions. Since hydrogen can be produced from water using non-carbon primary energy sources, it is the ideal sustainable fuel. The options for producing the hydrogen include renewables (e.g. solar and wind), fossil fuels with carbon sequestration, and nuclear energy. A comprehensive study has been initiated to define economically feasible concepts and to determine estimates of efficiency and cost for hydrogen production using next generation nuclear reactors. A unique aspect of the study is the assessment of the integration of a nuclear plant, a hydrogen production process and the broader infrastructure requirements. Hydrogen infrastructure issues directly related to nuclear hydrogen production are being addressed, and the projected cost, value and end-use market for hydrogen will be determined. The infrastructure issues are critical, since the combined cost of storing, transporting, distributing, and retailing the hydrogen product could well exceed the cost of hydrogen production measured at the plant gate. The results are expected to be useful in establishing the potential role that nuclear hydrogen can play in the future hydrogen economy. Approximately half of the three-year study has been completed. Results to date indicate that nuclear produced hydrogen can be competitive with hydrogen produced from natural gas for use at oil refineries or ammonia plants, indicating a potential early market opportunity for large-scale centralized hydrogen production. Extension of the hydrogen infrastructure from these large industrial users to distributed hydrogen users such as refueling stations and fuel cell generators could facilitate the establishment of a broad-based hydrogen economy. (author)