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H2 Production Cost Calculator

Grey / Blue / Green hydrogen - Levelized Cost of Hydrogen (LCOH)

Grey H2

Blue H2

Green H2

/// grey hydrogen - steam methane reforming (SMR)

SMR process: CH4 + H2O → CO + 3H2 (reforming) | CO + H2O → CO2 + H2 (WGS reaction)
Overall: CH4 + 2H2O → CO2 + 4H2 | ΔH = +206 kJ/mol (endothermic)
Typical plant: 100,000 Nm3/hr H2, operating at 800-900°C, 20-35 bar. CO2 is vented (grey H2) or captured (blue H2).

/// natural gas feedstock and energy

Natural gas price

USD/MMBtu

Specific NG consumption

Nm3 NG/Nm3 H2

Steam export credit

USD/tonne

/// plant economics

Plant capacity

Nm3/hr

Capital cost (CAPEX)

M USD

Plant lifetime

years

Discount rate (WACC)

Capacity factor

Fixed O&M (% CAPEX/yr)

CO2 emission (vented)

kg CO2/kg H2

Carbon price (ETS)

USD/tonne CO2

/// blue hydrogen - SMR with carbon capture and storage (CCS)

Blue H2: Same SMR process as grey H2, but CO2 is captured (typically 85-95% capture rate) and permanently stored underground (geological sequestration) or utilized (CCUS). Higher CAPEX and OPEX than grey H2 due to CCS unit, but significantly lower CO2 intensity.

Natural gas price

USD/MMBtu

SMR+CCS CAPEX

M USD

CCS transport + storage

USD/tonne CO2

CO2 capture rate

Gross CO2 emissions

kg CO2/kg H2

Carbon price (ETS)

USD/tonne CO2

Plant capacity

Nm3/hr

Discount rate

Capacity factor

/// green hydrogen - PEM electrolysis (Proton Exchange Membrane)

PEM electrolysis: H2O → H2 + ½O2 (ΔG = 237 kJ/mol at STP)
Energy requirement: Minimum thermodynamic = 39.4 kWh/kg H2 | Actual PEM efficiency = 65-75% → 50-60 kWh/kg H2
Key drivers: Electricity cost dominates (60-75% of LCOH). Solar/wind at $20-40/MWh enables $2-3/kg green H2 by 2030.

/// electricity and electrolyzer parameters

Electricity cost

USD/MWh

Electrolyzer efficiency

Stack capacity

Electrolyzer CAPEX

USD/kW

Stack replacement (% CAPEX)

Stack lifetime

hours

Capacity factor

Plant lifetime

years

Discount rate (WACC)

Water cost

USD/m3

Fixed O&M (% CAPEX/yr)

/// LCOH comparison - grey vs blue vs green hydrogen

All values calculated from your inputs in tabs 1-3. Adjust parameters in each tab to update this comparison automatically.

LCOH breakdown by cost component (USD/kg H2)

Sensitivity: LCOH vs electricity price (Green H2) and NG price (Grey/Blue H2)

/// break-even analysis - when does green H2 compete?

Calculate the electricity price at which green H2 LCOH equals grey or blue H2 LCOH. Also calculates the carbon price needed to make grey H2 uncompetitive versus alternatives.

Green H2 LCOH target

USD/kg H2

Grey H2 current LCOH

USD/kg H2

Electrolyzer CAPEX (future)

USD/kW

Efficiency

Capacity factor

Green H2 LCOH vs electricity price at different electrolyzer CAPEX (USD/kW)

/// hydrogen production - global technology overview

Technology	Color	Feedstock	LCOH 2024 (USD/kg)	CO2 (kg/kg H2)	Maturity
SMR (Steam Methane Reforming)	Grey	Natural gas	1.0-2.5	9-12	Commercial
SMR + CCS (90% capture)	Blue	Natural gas + CCS	1.5-3.5	0.9-1.2	Commercial
ATR + CCS (autothermal ref.)	Blue	Natural gas + CCS	1.4-3.0	0.5-0.9	Demonstration
PEM Electrolysis (grid)	Yellow	Electricity (grid)	3.0-8.0	varies	Commercial
PEM Electrolysis (solar/wind)	Green	Renewable electricity	1.5-6.0	< 1	Commercial
Alkaline Electrolysis	Green	Renewable electricity	1.5-5.5	< 1	Commercial
SOEC (Solid Oxide)	Green	Electricity + heat	2.0-5.0	< 0.5	Pilot
Coal gasification	Brown/Black	Coal	1.0-2.0	18-20	Commercial
Coal gasification + CCS	Blue	Coal + CCS	2.0-4.0	0.9-2.0	Demonstration
Biomass gasification	Green/Bio	Biomass	2.0-4.5	0-negative	Pilot
Nuclear thermochemical (HTE)	Pink	Nuclear heat	2.5-5.0	~0	R&D
Methane pyrolysis	Turquoise	Natural gas (no CO2)	1.5-3.5	~0 (solid C)	Pilot

/// key physical constants - hydrogen

Property	Value	Unit	Notes
Molecular weight	2.016	g/mol	H2
LHV (Lower Heating Value)	119.96	MJ/kg	33.33 kWh/kg
HHV (Higher Heating Value)	141.86	MJ/kg	39.41 kWh/kg
Energy density (gas, ambient)	0.01005	MJ/L	At STP (0°C, 1 atm)
Energy density (liquid H2)	8.491	MJ/L	At -253°C, 1 atm
Energy density (700 bar CGH2)	5.32	MJ/L	Compressed gas, 700 bar
Density (gas, ambient)	0.0899	kg/Nm3	At 0°C, 1 atm
Boiling point	-252.9	°C	At 1 atm
Minimum thermodynamic energy	39.4	kWh/kg H2	ΔG = 237 kJ/mol
Faraday constant	96485	C/mol	For electrolysis calculation
Water consumption (electrolysis)	9.0	L H2O / Nm3 H2	Or ~11 kg H2O/kg H2
1 kg H2 equivalent to	~33.3	kWh	LHV basis
SMR CH4 consumption (ideal)	0.25	kg CH4 / kg H2	Stoichiometric: CH4+2H2O→CO2+4H2
SMR CH4 consumption (real)	0.40-0.45	kg CH4 / kg H2	Including heat duty

/// LCOH formula reference

LCOH (Levelized Cost of Hydrogen) = (CAPEX annuity + OPEX_fixed + OPEX_variable) / Annual H2 production

CAPEX annuity: CAPEX x r(1+r)^n / ((1+r)^n - 1) where r = WACC, n = lifetime
Annual H2 (kg/yr): Capacity (kW) x CF x 8760 / Energy_per_kg (kWh/kg)
For SMR: LCOH (USD/kg) = [NG_cost + CAPEX_ann + O&M] / H2_annual - steam_credit
For PEM: LCOH (USD/kg) = Elec_cost x SEC + CAPEX_ann/H2_annual + O&M/H2_annual + water_cost
SEC (Specific Energy Consumption): SEC = HHV_H2 / electrolyzer_efficiency = 39.4 / eta kWh/kg
Carbon cost impact: Delta_LCOH = CO2_intensity (kg CO2/kg H2) x carbon_price / 1000

petrosmartacademy.com · H2 cost calculations per IEA Hydrogen Report / IRENA Green Hydrogen Cost Reduction · Educational tool