Development of Conceptual Cost Estimation Model for an Economic Analysis of Steam Methane Reforming based Hydrogen Production

This study develops a steam methane reforming hydrogen production conceptual cost estimation model for large-scale hydrogen extraction. Capital expenditure, operating expenditure, and abandonment expenditure are estimated yearly based on the cost estimation model considering the scale effects of the hydrogen production facility. These are used in economic evaluation with sensitivity analysis according to the input parameters’ changes. The relationship between the levelized cost of hydrogen and the net present value according to the change of facility scale is confirmed. The base case model gives a hydrogen production of 333 tonnes/day and a levelized cost of 2.91 US$/kg, which has been verified as a reliable value. This model is expected to be further utilized in hydrogen production feasibility studies under various scenarios and contribute to efficient decision-making.