(439h) Optimizing Renewable Hydrogen Production: Insights from Regional Variabilities and Storage Solutions in the U.S Regions.

In the face of a global surge in hydrogen demand, the strategic design and optimization of the hydrogen supply chain become crucial. This study focuses on the renewable hydrogen supply chain across key U.S. regions, including Gulf Coast, California, and Midwest. Our analysis evaluates the Levelized Cost of Hydrogen (LCOH) across the supply chain, shedding light on the impact of techno-economic assumptions for renewable energy sources and electrolysis, the strategic use of geological salt caverns for storage, and the diversity in renewable energy generation mixes.

Our findings reveal a dominant production cost, which accounts for nearly 90% of the total LCOH, with initial costs in 2025 projected at $6.1/kg, $7.8/kg, and $6.3/kg for the Gulf Coast, California, and Midwest, respectively. The study anticipates a potential reduction in LCOH by a minimum of 52% by 2050, thanks to technological advancements and efficiency gains in renewable energy and electrolysis processes. A detailed comparison between salt cavern storage and liquid hydrogen storage models highlights a possible increase in LCOH by approximately $1.0/kg for scenarios dependent on liquid storage.

Moreover, our investigation into the system cost implications of renewable energy mixes emphasizes the critical importance of oversize factors. A one-to-one ratio of renewable energy to electrolysis capacity could elevate the LCOH to $11.3/kg, $11.5/kg, and $14.7/kg for the respective regions under a pure solar PV or onshore wind framework. These insights underline the significance of oversizing factors and diverse energy mixes in crafting efficient renewable hydrogen systems, paving the way for informed industrial applications. Additionally, the exploration of offshore wind as a component of the hydrogen production mix underscores its current economic challenges. Without substantial cost reductions, offshore wind remains an economically unfeasible option. Our study contributes to a deeper understanding of the factors influencing the cost-efficiency and sustainability of renewable hydrogen production, offering valuable perspectives for future development and deployment strategies.