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Concept Design Study - confirmation of low energy use for compressed hydrogen supply in Europe

Concept Design Study - confirmation of low energy use for compressed hydrogen supply in Europe

Provaris Energy Ltd is pleased to announce the completion of its Concept Design Study for bulk-scale hydrogen export and import compression facilities. The Study, the fourth in a series of techno-economic studies developed by Provaris, was based on a 540MW capacity reservation export site, producing 87,000 tpa of hydrogen; with an intra-Europe shipping distance of 1,000 nautical miles (one-way) using its proprietary H2Neo carrier to deliver gaseous hydrogen to the customer at 70 barg.

A leading original equipment manufacturer of high pressure compressor equipment (Compressor OEM) supported the preparation of the Study with the selection of optimal compression equipment to ensure the project's feasibility.

The Study reaffirmed the low energy use and low capital of Provaris’ compressed hydrogen supply chain for regional marine transport of gaseous hydrogen, with the following key outcomes:

• Export Terminal: ~1.5 kWh per kg of hydrogen required to store and load the H2Neo carrier.  

• Import Terminal: ~0.2 kWh per kg of hydrogen to unload the H2Neo carrier

• Low energy Use: compression for storage and loading represented only ~3% (15MW) of all power requirements for the export site, with the remaining 97% (525MW) available for hydrogen production via electrolysis.

• Low capital cost: the Study estimated the capital cost of the required compression facilities at 120 million Euro, representing less than 7% of the total capex of the entire hydrogen supply chain.

2. Based on an electrolyser outlet pressure of 20 barg

3. For the entire compressor facility, includes balance of plant, buildings, civils, etc

4. Level 3 capital cost estimates

In comparison, ammonia synthesis and ammonia loading were considered by Provaris to required up to 5 times more energy (7.5 kWh/kg H2 or 65MW), leaving only 470MW available for hydrogen production via electrolysis after the ammonia energy demand taken into account.

Therefore, including the losses in cracking ammonia back to hydrogen, Provaris considers the compressed hydrogen supply chain delivers ~50% greater hydrogen volumes to the customer when compared to the ammonia supply chain (Refer to Figure 1 below).

Supported by the Study scope and outcomes, compression’s superior capital and energy efficiency could result in a ~20% lower delivered price at €6/kg compared to regional supply ammonia post cracking back to hydrogen at €7.4/kg (refer to Figure 2 below).

All equipment selection and costs aligned with a level 3 project feasibility assessment, with the capital and operating costs, compression capacity (MW), and energy use (kWh) provided by a globally recognised Compressor OEM working with Provaris on the selection of high-pressure compressors for industrial gases, including hydrogen.

All compressor equipment selected for the Study is compatible with hydrogen at scale and commercially available with no further research and development or certification to operate up to 250 barg.

“The Concept Design Study reconfirmed the superior energy efficiency and low capital cost associated with compression for marine transportation of hydrogen. It is pleasing to receive detailed costings and equipment selection from the Compressor OEM, supporting our development case in Europe. This Study has increased our confidence and understanding that many regional-European sites with a material level of renewable power reservation can significantly benefit from compression, when compared to the alternative of converting hydrogen into ammonia for marine transport. The key benefits of compression are the delivery of greater hydrogen volume (up to 50% more), committing less capital per kg of hydrogen delivered, whilst boosting the financial returns to the producer whilst maintaining a highly competitive delivered cost to the customer.”

Provaris Energy Product Development Director Garry Triglavcanin