Levelised cost of blue hydrogen modelling, 2025 to 2050

This data represents calculations of the levelised cost of blue hydrogen production assuming autothermal reforming plus carbon capture and storage technology. The purpose of this data is to provide a comparison with the costs of green hydrogen. The figures here reflect a single case of costs over time rather than a range of capex and opex curves. One scenario is assumed for the capital and operating expenditure of the plant, along with simplified assumptions for the fuel cost, electricity cost, and carbon transport, storage, and emissions costs.

Key assumptions:

  • Discount rate: 6 - 15%
  • Plant lifetime = 40 years
  • Plant construction time = 3 years
  • Industrial Gas LRVC used to calculate fuel costs (from Green Book supplementary guidance: valuation of energy use and greenhouse gas emissions for appraisal, Department for Energy Security and Net Zero)
  • Industrial Electricity LRVC used to calculate electricity costs (from Green Book supplementary guidance: valuation of energy use and greenhouse gas emissions for appraisal, Department for Energy Security and Net Zero)
  • Carbon prices used to calculate emissions costs are based on Traded carbon values used for modelling purposes 2024, Department for Energy Security and Net Zero
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Table Information

Tech

Title Tech
Type string
Description Blue H2 production technology - Autorthermal reforming plus carbon capture and storage (ATR + CCS)
Comment
Example
Unit N/A

Build Year

Title Build Year
Type integer
Description Construction year of the plant
Comment
Example
Unit N/A

Discount Factor

Title Discount Factor
Type number
Description The discount factor or hurdle rate representing the cost of financing.
Comment
Example
Unit %

Units

Title Units
Type string
Description LCOH units of hydrogen produced - either £/kg or £/MWh H2 HHV (higher heating value)
Comment
Example
Unit N/A

LCOH

Title LCOH
Type number
Description The total discounted lifetime cost of building and operating the plant, expressed as a cost per unit of hydrogen produced (£/MWh H2 HHV or £/kg)
Comment
Example
Unit £/MWh H2 HHV or £/kg

LCOH Capex

Title LCOH Capex
Type number
Description Capex component of the LCOH
Comment
Example
Unit £/MWh H2 HHV or £/kg

LCOH Fixed Opex

Title LCOH Fixed Opex
Type number
Description Fixed opex component of LCOH
Comment
Example
Unit £/MWh H2 HHV or £/kg

LCOH Variable Opex

Title LCOH Variable Opex
Type number
Description Variable opex component of LCOH
Comment
Example
Unit £/MWh H2 HHV or £/kg

LCOH Electricity Cost

Title LCOH Electricity Cost
Type number
Description Cost of electricity component of the LCOH
Comment
Example
Unit £/MWh H2 HHV or £/kg

LCOH Fuel Cost

Title LCOH Fuel Cost
Type number
Description Cost of fuel component of LCOH
Comment
Example
Unit £/MWh H2 HHV or £/kg

LCOH CO2 T&S Cost

Title LCOH CO2 T&S Cost
Type number
Description LCOH cost of captured CO2 transport and storage
Comment
Example
Unit £/MWh H2 HHV or £/kg

LCOH Emissions Cost

Title LCOH Emissions Cost
Type number
Description LCOH cost of CO2 emissions not captured
Comment
Example
Unit