Abstract

As hydrogen technology and market landscape evolve quickly, there is a real sense of urgency in research and development of hydrogen storage technology solution that would fit the needs of U.S. energy and economic system. Storage plays a critical role to provide cost-effective and reliable fuel options to connect various production pathways to emerging market applications. Underground geological storage of hydrogen has the potential of cost-effective seasonal or longer-term storage as needed to respond to variations in supply and demand and compares favorably to above-ground storage options in term of storage capacities, cost, and safety.

This work is part of the integrated infrastructure analysis research under the GeoH₂ group at the University of Texas Bureau of Economic Geology, as the group focuses on multidisciplinary research leveraging both subsurface fundamental research and market analysis to bring solutions to scaling up a hydrogen economy.

The goal of this study is to develop a robust framework that provides data driven valuation of hydrogen geological storage options. This framework delivers a techno-economic analysis and includes two major components: (1) a project specific life cycle analysis of a geological storage unit, including depleted reservoir and aquifer options for hydrogen storage, besides the proven option of salt cavern; and (2) a market and application-based demand assessment for the storage project. This study combines existing literature and previous research, with up-to-date technical parameters and broadened scope of downstream market applications. It is designed to be a user-friendly simulation framework that could be easily modified and leveraged with other hydrogen related research.