An open letter to the CEO, page-17

So can we produce hydrogen below the cost of SMR. ie below$1.20 to $1.50 per kg. while electrolysis cost twice this at the moment.
If we can then, this is disruptive technology, until cost of electrolysis falls.

If not, then yes, like Geodynamics the technology works , but is not economnic. In which case welcome to GN mark 2.

As of 1999, the majority of hydrogen (∼95%) is produced from fossil fuels by steam reforming or partial oxidation of methane and coal gasification with only a small quantity by other routes such as biomass gasification or electrolysis of water.[5] Around 8GW of electrolysis capacity is installed worldwide, accounting for around 4% of global hydrogen production. Developing affordable methods for producing hydrogen with less damage to the environment is a goal of the hydrogen economy.


[39]H2 production cost ($-gge untaxed) at varying natural gas prices Considering the industrial production of hydrogen, and using current best processes for water electrolysis (PEM or alkaline electrolysis) which have an effective electrical efficiency of 70-82%,[40][41][42] producing 1 kg of hydrogen (which has a specific energy of 143 MJ/kg or about 40 kWh/kg) requires 50–55 kWh of electricity. At an electricity cost of $0.06/kWh, as set out in the Department of Energy hydrogen production targets for 2015,[43] the hydrogen cost is $3/kg.

With the range of natural gas prices from 2016 as shown in the graph (Hydrogen Production Tech Team Roadmap, November 2017) putting the cost of SMR hydrogen at between $1.20 and $1.50, the cost price of hydrogen via electrolysis is still over double 2015 DOE hydrogen target prices. The US DOE target price for hydrogen in 2020 is $2.30/kg, requiring an electricity cost of $0.037/kWh, which is achievable given recent PPA tenders[44] for wind and solar in many regions. This puts the $4/gge H2 dispensed objective well within reach, and close to a slightly elevated natural gas production cost for SMR.In many cases, the advantage of electrolysis over SMR hydrogen is that the hydrogen can be produced on-site, meaning that the costly process of delivery via truck or pipeline is avoided.