2019 Volume 98 Issue 4 Pages 62-72
Hydrogen (H2) receives much attention to mitigate climate change and strengthen energy security. This study analyzed the economic viability of H2 energy with a focus on the electricity and transport sectors, employing a spatially-disaggregated global energy system model. The simulated period is from 2015 to 2050. The results suggest that, in addition to strict CO2 regulation policies, significant cost reductions of H2 production technologies would be prerequisite to accelerate H2-fueled power generation globally. By contrast, deployment of fuel-cell vehicle appears more sensitive to vehicle price, rather than the H2 supply costs. Among H2 production processes, gasification of coal and reformation of natural gas, combined with carbon capture and storage, are estimated to be cost-efficient, implying opportunities for H2 trade between coal and gas resource countries and energy consumers. Yet, again, improved economics are necessary for maritime H2 transportation, including liquefied H2; otherwise, H2 trade would be limited to pipeline. If maritime H2 trade becomes economically viable, natural gas and coal in Australia could be competitive feedstock for Japan. Long-term policies to support research and development are crucial to commercialize H2 supply system.
