(89d) Relative Economic Incentives for Hydrogen from Nuclear, Solar, and Fossil Energy Sources

The value of hydrogen from different sources depends upon the specific market. Each hydrogen production technology has its own characteristics. For example, steam reforming of natural gas produces only hydrogen. In contrast, nuclear and solar hydrogen production facilities will produce hydrogen together with oxygen as a by-product or co-product. The value of hydrogen from nuclear and solar plants is higher than from a fossil plant for a user that needs both hydrogen and oxygen. With nuclear or solar systems, ?free? oxygen is produced as a by-product. Six factors that impact the relative economics of fossil, nuclear, and solar hydrogen production to the customer are identified: oxygen by-product, avoidance of carbon dioxide emissions, hydrogen transport costs, storage costs, availability of low-cost heat, and institutional factors. These factors imply different hydrogen production technologies will be competitive in different markets and that the first markets for nuclear and solar hydrogen will be those markets that give them a unique competitive advantage. These secondary economic factors are described and quantified in terms of $/kg of hydrogen.