Case Study: Ricardo Strategic Consulting developed a detailed economic model for H2 refuelling infrastructure and fuel price

Case Study: Ricardo Strategic Consulting developed a detailed economic model for H2 refuelling infrastructure and fuel price

Challenge

California is committed to establishing an H2 infrastructure of at least 100 refueling stations. The state is awarding grants to cover capital and initial operational costs, in anticipation that eventually private companies will cover future investments. The price for dispensed hydrogen is likely to change significantly from early market conditions with few fuel cell vehicles to a developed hydrogen fuel market.  The study provides an analysis for the total cost breakdown for refueling costs today and a basis for the reduction of these costs as the market develops.

Approach

  • Develop a financial model of costs associated with H2 generation through dispensing to predict the price of H2 at the pump
  • Include capital, operational, logistics costs associated with H2 refueling stations from a variety of sources: supplier and industry expert interviews, and public reports (e.g DoE, NREL)
  • Modeled multiple pathways of H2 generation and dispensing for small to large size stations which are either currently in practice or expected to be implemented in the next few years
 

Recommendation 

  • Glide path to hydrogen price reduction based on detailed understanding of cost breakdown associated with different supply pathways

Results

An Excel-based tool to analyze different hydrogen supply pathways and get insight into associated costs:

  • Ability to analyze current and future scenarios to understand the glide path to economic viability in a developed hydrogen fuel market

  • Estimation of equipment footprint and total footprint requirements at small, medium, and large-sized stations