'Too expensive' | US regulators drop hydrogen co-firing from power plant decarbonisation plan
H2 likely to cost more in 2030 than we originally thought, says Environmental Protection Agency
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Hydrogen co-firing was at the time recommended to reach 30% of power plants by 2032 and 96% by 2038.
But the final rule, published today, now envisages fossil-fuel-powered baseload plants, such as coal-fired plants and high-capacity gas plants, relying solely on CCS technology by 2032, when the performance standards kick in.
Open-cycle gas turbines are significantly less efficient than the combined cycle turbines (CCGT) called for by some campaigners, however the EPA reportedly balked at the capital cost differential between the two.
The decision to drop hydrogen as a “best” solution is “based on uncertainties identified for specific criteria used to evaluate low-GHG [greenhouse gas] hydrogen [ie, green H2] co-firing as a potential BSER, and after further analysis in response to public comments, the EPA has determined that these uncertainties prevent the EPA from concluding that low-GHG hydrogen co-firing is a component of the ‘best’ system of emission reduction at this time,” the EPA final rule states.
Specifically, the regulator had carried out an additional cost analysis in response to its public consultation on the draft rule, and found that green hydrogen would likely cost more in 2030 than it originally thought.
Some power producers had additionally warned that green hydrogen may be hard to come by.
“These higher cost estimates and associated uncertainties related to its nationwide availability were key factors in the EPA’s decision to revise its 2030 cost estimate for delivered low-GHG hydrogen,” the EPA said.
However, the rule does not prevent power station owners from using hydrogen co-firing to meet the emissions performance standards, and, significantly, the EPA has also removed its requirement that only “low-GHG hydrogen” (ie, made with renewable energy) can be burned in this instance.
“Even though the EPA is not finalising the low-GHG hydrogen co-firing as a BSER, as proposed, it maintains that the overall GHG profile of a particular method of hydrogen production should be a primary consideration for any source that decides to co-fire hydrogen to ensure that overall GHG reductions and important climate benefits are achieved,” it said.
Peaking plants that typically operate at very low load should meet their emissions performance standards by choosing the lowest emissions fuel, the EPA added in the rule.
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