Hydrogen storage: the economics?

This model captures the costs of storing hydrogen, which appear to be much higher than storing natural gas or diesel fuel.


We estimate a $2.50/kg storage spread may be needed to earn a 10% IRR on a $500/kg storage facility, while costs could be deflated to $0.5/kg if nearby salt caverns are available and projects are large and efficient.

Costs could also be deflated modestly at a high-utilization but low-speed vehicle fuelling station, in the transportation sector.

The model hinges on costs of tanks and compressors, where costs are bounded based on technical papers and online sources. Detailed notes and input data are tabulated in backup tabs behind the model.

Please download the data-file to stress test the economics.

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