Abstract
In order to analyze the economics of domestic hydrogen production and methane synthesis, an optimized model with power generation and city gas sector was developed and estimated under several CO2 tax cases. This model includes carbon recycling technology which synthesize methane from CO2 and hydrogen. In this paper, the conditions for the implementation of hydrogen production and methane synthesis technology in conjunction with daily power supply operations were analyzed. Furthermore, a comparison of the cost competitiveness of domestic and imported hydrogen was also discussed by considering the use of imported hydrogen in the model. Simulation results imply that under high carbon price condition, while the introduction of hydrogen-fired power generation using imported hydrogen progress, the introduction of methane synthesis is very limited, suggesting that it will be difficult to reduce CO2 emission in the city gas sector.
