H2Tech - Q2 2022 - 26

SPECIAL FOCUS HYDROGEN INFRASTRUCTURE DEVELOPMENT
FIG. 2 shows that, based on an analysis
of the existing gas network, nearly 90% of
the EHB can be expected to consist of medium
[28 in.-37 in. (700 mm-950 mm)
diameter] and large [> 37 in. (> 950 mm)
diameter] pipelines. For simplicity, it is
assumed that the share of pipeline diameters
for newly built H2
stretches remains
comparable to the current shares in the
natural gas network.
Representative unit capital cost figures
for small, medium and large H2
pipelines
are summarized in TABLE 2. These
figures use 20-in. (~500 mm), 36-in.
(~900 mm) and 48-in. (~1,200 mm) as
models to represent small, medium and
large pipelines, respectively. This is a
simplification of reality, given that the
actual backbone is made up of a continuous
range of pipeline sizes. Additional
underlying cost assumptions such as
compressor costs, depreciation periods,
and operating and maintenance costs are
also shown and are consistent with those
used in the previous EHB report of July
2020. These cost estimates are based on
gas TSOs' preliminary research and development
efforts with regards to H2
Repurposed
27,200 km
Medium
Small
8%
(< 28 in. / < 700 mm)
29%
(28 in.-37 in. /
700 mm-950 mm)
Large
(> 37 in. / > 950 mm)
0%
20%
40%
60%
80%
FIG. 2. Breakdown of the EHB network by pipeline length, diameter and share of repurposed
vs. new pipelines.
TABLE 2. Cost input ranges used for estimating total investment, operating and
maintenance costs for H2
report published in 2020.
Cost parameter
Small
Pipeline capital
expenditure, new
Medium
Large
Small
Pipeline capital
expenditure,
repurposed
Medium
Large
< 700 mm
(< 28 in.)
700 mm-950 mm
(28 in.-37 in.)
> 950 mm
(> 37 in.)
< 700 mm
(< 28 in.)
700 mm-950 mm
(28 in.-37 in.)
> 950 mm
(> 37 in.)
Compressor station capital expenditure
Electricity price
Depreciation period pipelines
Depreciation period compressors
Weighted average cost of capital
Operating and maintenance costs
(excluding electricity)
26 Q2 2022 | H2-Tech.com
M€/MWe
€/MWh
Yr
-
%
€/yr as a %
of capital
expenditure
-
-
2.2
40
-
3.4
50
33-55
15-33
5-7
0.8%-1.7%
6.7
90
-
-
-
-
M€/km
0.2
0.2
0.3
0.4
0.5
0.5
Unit
1.4
2
2.5
1.5
100%
32%
14%
13%
Newly constructed
12,450 km
4%
infrastructure.
The ranges are determined
through comparison with experience investing
in and operating existing natural
gas networks and based on initial experience
in pilot projects. Although some
dedicated H2
components have been
tested in pilot projects, no large-scale H2
infrastructure exists to provide real historical
benchmark figures. Equal to the
previous results in 2020, these cost estimates
are based on running an average
single stretch of H2
pipeline. They do not
incorporate a scenario-based simulation
of a full-scale network, as is commonly
done for network development planning.
The inclusion of sub-48-in. stretches-
mainly medium-sized pipelines of around
36 in. in diameter-significantly reduces
the overall investment cost vs. a case where
all pipelines are assumed to be 48 in. in
diameter. At the same time, the levelized
cost of transport is somewhat higher for
smaller pipelines, which raises the overall
levelized cost. As a result, transporting
hydrogen over 1,000 km along an average
stretch of the H2
backbone, as presented in
transported
this article, would cost €0.11/kg-€0.21/kg
($0.12/kg-$0.23/kg) of H2
with €0.16/kg ($0.17/kg) in the central
case. This corresponds to €3.3/MWh-
€6.3/MWh ($3.6/MWh-$6.89) of H2
per 1,000 km, with €4.9/MWh ($5.36/
MWh) in the central case.
This price figure represents a blended
infrastructure. This data was adapted from the original EHB
Low Medium High
1.8
2.2
2.8
2.7
3.4
average across a wide range of pipeline sizes
and types-ranging from repurposed
20-in. pipelines to new 48-in. ones-and
reflects their respective distance and capacity-weighted
shares within the context
of the overall EHB. The blended levelized
cost of €0.11/kg-€0.21/kg ($0.12/kg-
$.023/kg) per 1,000 km is calculated by
multiplying the estimated levelized costs
for each pipeline diameter by their respective
capacity- and distance-weighted
shares (i.e., the relative amount of H2
transported by that pipeline size across
the entire backbone).
This means that even though smaller
pipelines have a higher cost of transport per
unit distance, their modest share in terms
of length and capacity leads to a modest
impact on overall transport costs when
considering the pan-European picture.
The cost ranges reflect uncertainties
in the estimate of the cost of the EHB.
Depending on circumstances, the costs
for individual stretches can be lower or
higher than the range indicated.
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