Kendy Madisha NRG

1
Market Potential Economic Analysis for Nuclear
Hydrogen Production

• Kendy Madisha (NRG)
• Post-FISA Workshop
• High-Temperature Reactor for Combined
  Heat/Electricity and Hydrogen Production
• 16 March 2006, Luxemburg

2
Outline

• Market potential
• Market potential in energy sectors
• Market potential through CO2 elimination
• Market entrance
• Economic analysis

3
Energy Consumption in WEU
4
Market Potential in Energy Sector Oil and Gas
5
Strategic Routes for Reduction of CO2
6
Economic Analysis of Nuclear Heat
7
Levelized Cost Calculation of Hydrogen Produced

• Feedstock cost
• Hydrogen Plant Capital recovery and OM cost
  component
• Power Plant Capital recovery cost component
• Power Plant fuel, decommissioning and OM cost
  component
• Hydrogen pumping power cost component and
• By-product credit/tax cost component.

8
Cost Objectives For Hydrogen Produced from Nuclear

• The cost price of hydrogen (/GJ) should be in
  the range of existing prices for gasoline and
• The price should also be competitive to the cost
  price of hydrogen produced by alternative
  hydrogen production technologies (i.e. SMR) for
  end use of hydrogen.

9
Targeted Hydrogen Production Quantity
Hydrogen quality at 99.999 for fuel cell
aplication
10
Natural Gas Prices in Europe
Fig. 5-8B International prices for Natural Gas
in January 2005 (excl. V.A.T) Energie.nl
11
Hydrogen Technology Comparisons Excluding
By-Product Costs
Electricity price _at_ 3 c/kWh
12
Hydrogen Technology Comparisons Including
By-product credit and penalties
O2 credit20/t CO2 penalty 40/t
Electricity price _at_ 3 c/kWh
13
Major Fuel Comparisons
Hydrogen production include SMR, I-S THE.
14
Conclusion

• Nuclear hydrogen production will remain
  economically attractive, and should be considered
  one of the favorable solutions for the reduction
  of CO2, energy security, and better air quality
• The nuclear hydrogen cost price reasonably within
  the current consumer price for fossil fuels in
  the transportation sector, and it is also
  competitive to cost prices from alternative h2
  production technologies and
• Other factors other than economics such as
  nuclear proliferation and waste will need
  consideration as nuclear hydrogen demand
  increase.

15

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