Techno-Economic Analysis of Hydrogen Transportation in Existing Natural Gas Pipeline

Abstract The aim of this study is to conduct techno-economic analysis for calculating the levelized cost of hydrogen transportation (LCOHT) in both an existing natural gas (NG) network and in new pipelines. Therefore, the pipeline retrofitting cost was considered. The analysis is based on the results of modeling and simulation of the NG-H2 mixtures in the pipeline that provided the profile of the main parameters such as pressure, temperature and calorific values. Consequently, the economics analysis of repurposing an existing NG pipeline for H2 transportation for a 20-years project period was conducted and including the retrofitting costs of pigging stations, valve stations, and measuring stations. The investigation revealed that the levelized cost of hydrogen transportation (LCOHT ) decreases from 0.83 to 0.46$/kg-H2 for NG-H2 blends (10 to 50% H2) respectively. However, establishing a new pipeline demonstrates a direct increase in LCOHT. For instance, the cost of new pipeline starts from 312 M$ to 324 M$ in comparison to 1.363-57.27 M$ for transporting the equivalent NG-H2 blend amount (up to 50% H2) in repurposed pipeline. These results recommend repurposing the existing pipeline over the establishment of a new pipeline. The results are compared and concluded to support the oil and gas industry in deciding on the repurposing of the existing natural gas network.