Economics of Hydrogen
This chapter intends to be useful to the reader who has no special training in economics. It endeavors to provide the cost data necessary for analyses and make possible economic comparisons with competing fuels or feedstocks, and presents examples of simple economic analyses. The chapter determines the cost parameters needed to assess the cost of producing, transmitting, storing, and using hydrogen in hydrogen energy systems. It mentions technical details concerning production, transmission, and storage, and specifies relevant cost parameters. The chapter describes the economic terms and basic economic principles. There are many processes for producing hydrogen from fossil fuels and/or water. The estimated costs for piping hydrogen gas are taken from the extensive studies of Konopka and Wurm. Offshore or undersea pipeline cost data are much more difficult to obtain. However, some oil and natural gas pipeline cost data are available and will be used to estimate the cost of laying underwater pipelines for transmission of hydrogen gas.