Integrated CO₂ sequestration and seasonal underground blue hydrogen storage: a model-based technoeconomic evaluation

Abstract

This study investigates the technical and economic feasibility of an integrated system combining carbon dioxide (CO₂) sequestration and seasonal blue hydrogen (H₂) storage in depleted gas fields. A fully coupled reservoir simulation model was developed using CMG-GEM, calibrated with realistic geological and thermodynamic parameters, to simulate sequential CO₂ injection and cyclic H₂ injection–withdrawal operations over a 30-year period. Three cases with varying CO₂ injection rates were evaluated alongside different H₂ pre-injection strategies and seasonal injection–production schemes. Results reveal that optimal well placement at the anticline crest significantly enhances CO₂ cushion gas distribution and H₂ circulation performance. Additionally, higher cushion gas injection volumes create a sufficient isolation zone between reservoir water and the stored H₂ that helps in reducing water production and improve hydrogen purity (P_H₂). However, if not optimized properly, it can cause an increase in CO₂ breakthrough, leading to lower hydrogen recovery factors (RF_H₂). High H₂ production rates associated with shorter production durations were found to intensify geomechanical instability, water coning, and CO₂–H₂ mixing, resulting in unstable H₂ cycling operations, increased water production, and reduced P_H₂ and RF_H₂. The economic analyses showed that increasing the cushion gas volumes improves profit by significantly lowering the Levelized Cost of Hydrogen Storage (LCOHs) and increasing Net Present Value (NPV), in particular, the balanced H₂ circulation scheme (6/6) delivers the best results. H₂ pre-injection over six or twelve months was found to be economically unfeasible compared to not implementing pre-injection, as it led to higher LCOHs and lower NPV. Carbon credits play a critical role in project viability, with increased credit prices effectively offsetting capital and operational costs, thereby improving profitability. Moreover, it shows that the integrated system is profitable when the electricity price is below 0.11 $/kWh. Regional differences in electricity costs suggest that choosing cheaper areas can improve project viability.

Keywords

Carbon dioxide (CO₂) sequestration / Seasonal blue hydrogen (H₂) storage / Cushion gas / Levelized cost of H₂ storage / Net present value

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Funding

Sultan Qaboos University(CL/SQU-IGGCAS/WRC/23/01)

RIGHTS & PERMISSIONS

The Author(s), under exclusive licence to the International Society of Energy and Environmental Science