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Hydrogen can play an important role for decarbonization. While hydrogen isusually produced through SMR, it can also be produced through waterelectrolysis which is cleaner. The relative cost and carbon intensity ofhydrogen production through SMR and electrolysis vary throughout the UnitedStates because of differences in the grid. While many hydrogen cost modelsexist, no regional hydrogen study has been conducted across the US. We studiedhow the Levelized Cost of Hydrogen (LCOH) and carbon intensity for producinghydrogen vary across the US. We looked at electrolysis technologies (Alkaline,PEM, and SOEC) and compared them to SMR. In 2020, SMR with 90 percent CCUS hasa lower average LCOH and carbon intensity for hydrogen production thanelectrolysis by SOEC. For states with cleaner grids, hydrogen produced throughSOEC has a lower carbon intensity than hydrogen produced using SMR with 90percent CCUS. Washington has one of the lowest carbon footprints and the lowestLCOH to produce hydrogen through electrolysis (alkaline). We predict that theLCOH for hydrogen production will be 3.2 USD per kg for Alkaline, 3.1 USD perkg for PEM, and 2.6 USD per kg for SOEC by 2050 with constant electricityprices. These projected LCOHs are still higher than the LCOH for hydrogenproduced through SMR with 90 percent CCUS. If electricity costs decrease to 2cper kWh, we expect to reach cost-parity with SMR with 90 percent CCUS. Theresults suggest that significant investment in decarbonizing the grid andlowering the cost of electricity needs to be made to make electrolysis morecompetitive compared to SMR.

Analysis of Hydrogen Production Costs across the United States and over the next 30 years