Low-Carbon Hydrogen Production Using Small Modular Reactors

Abstract

Hydrogen has been proposed as a way to achieve decarbonisation within many sectors from transportation to industry. In order to achieve this reduction in emissions the hydrogen itself must be produced with low carbon emissions. The study has investigated what applications hydrogen will most likely have a prominent role in, and what requirements different demands put on the supply. The development of small modular nuclear reactors (SMR) has been investigated as well as their potential as an energy source in low-carbon hydrogen production. The research approach of the study consisted of a literature study, followed by an interview study. The interview study consisted of interviews with 12 experts in the areas of hydrogen applications and nuclear power. The study also included calculations deciding not only production cost but also the final delivered cost of hydrogen. The study found that there are some applications where the demand for hydrogen is certain, including in the production of ammonia and methanol. Other possible hydrogen uses include steel production and transportation are also found as probable areas with growing demands for hydrogen in the future. The study found that SMRs have many synergies with hydrogen production, including process heat, continuous production, modularity and SMRs being less location-specific compared to other alternatives. Finally, the results of the study include calculations of the delivered cost of hydrogen, proving that, under certain assumptions and when accounting for cost of the whole supply chain, small modular reactors provide a competitive source of energy. To summarise, the study has found that there is a need for low-carbon hydrogen in the future and that it is important to consider the delivered cost of hydrogen, which includes production, transportation, and storage cost. It was found that it is important to be technology-neutral when considering energy sources for producing hydrogen and that nuclear and SMRs should be included as an option.