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Significant opportunity for industry �engagement driven with DOE Earthshot Targets

Ambitious, achievable target to transform a key technology within the decade—lowering costs, raising performance, creating new jobs, and clearing the way to U.S. clean energy goals.

In One Decade:

Hydrogen: $1 per 1 kg; 1:1:1

Long Duration Storage: 90% cost reduction and systems with 10+hrs of storage

Carbon Negative: < $100 per tonne capture and sequestration

Decarbonize Industry: Goal under discussion, May 2022

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Remaking the U.S. Energy Infrastructure

Energy

Arbitrage

Transportation

& Industrial

Products

Broad Spectrum

Carbon Sources

Nuclear Energy

Renewable Energy

Electricity Grid

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How to produce clean hydrogen

Steam

More Heat

Reformer

Hydrogen

CO₂

Sequestration

Low-Temperature

Electrolysis (LTE)

High-Temperature

Electrolysis (HTE)

Water

Hydrogen

Steam / Methane Reforming

Electrolysis

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Hydrogen Production – Electrolysis Comparison to Steam Reforming of Natural Gas (SMR)

Low Temperature Electrolysis:

Efficiency – 71% (HHV)
Power requirement – 54 kWh/kg of H₂

High Temperature Steam Electrolysis:

Efficiency – 98.6% (HHV)
Power requirement – 40 kWh/kg of H₂

Advantages of Electrolysis:

Heat and Electricity provided by local/embedded power and heat source (reduces delivery and storage costs)
99.99% hydrogen purity ($0.50/kg cost savings on purification)
By-product oxygen for oxy-firing and other uses

Note: CCS – Carbon Capture and Sequestration

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Electro-Chemical Technology Development & Commercialization

Advanced Synthesis & Bulk Supply of Powders

Additive Manufacturing

Electro Catalysis

High Throughput Materials Testing

Electrode Engineering & Diagnosis

Component Sintering

Pilot Plant and Commercial Scale Demonstration

Materials Development

Bloom-Energy

Factory-Assembled

Commercial Prototypes

OxEon Stack Assembly

Performance Testing

Large Stack System Testing

Manufacturing Development

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SOEC SYSTEM DIAGRAM�Modules/Blocks/System: To take advantage of Economies of Physical Scale & Manufact. Rate

STRATEGIC ANALYSIS, INC.

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STACK-MODULE CONCEPT�Factory-built, Mass-Produced Modules & Module Skids

Anode Side

Cathode Side

Pressurized Stack-Module Concept 2

(Internal Thermal Equipment)

Non-Pressurized/Amb. Pressure

Stack-Module Concept (Insulated Only)

Pressure Vessel Containing:

Stacks (20-100 x 50kWe stacks)
HT Recuperators
In-line Topping Heaters

STACK-MODULE SKID (Multi-MW)

Topping Heater

Recuperator

Pressurized Stack-Module Concept 1

(External Thermal Equipment)

Pressure Vessel Containing:

Stacks (20-100 x 50kWe stacks)

Insulation Shell

Topping Heater

Recuperator

Non-Contained Recuperators

& Topping Heaters

Non-Pressure Containing:

Stacks (20-100 x 50kWe stacks)

Insulation Shell

Recuperator

Topping Heater

Stack-Module

Pressure Containing

Internal Recuperators & Topping Heaters
External Recuperators & Topping Heaters

Non-Pressure Containing

Housing/Enclosure/Container & Support Structure

Contains Multiple Stack Modules
Contains All Stack-Module BOP
Can be Explosion Proof or Intrinsically Safe

Stacks

Pressure Vessel

Stacks

Pressure Vessel

Stacks

STRATEGIC ANALYSIS, INC.

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Process flow diagram of “generic” SOE stacks fabrication using hydrogen electrode-supported cells

STRATEGIC ANALYSIS, INC.

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SOE TOTAL STACK COST

Dramatic cost reduction from 25MW/yr to 1 GW/year

Cost reduction above 500MW/yr is modest

Material cost & Manufacturing cost are 80% of total cost

Manufacturing is ~50% at low production rates, Materials is ~ 50% at high production rates

Electrolyte-supported Cells (EsC)

H₂ Electrode-supported Cells (HEsC)

STRATEGIC ANALYSIS, INC.

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LWR Plant Hydrogen Production and �Electricity Dispatch Schedule

Li-Batteries Storage Costs in 2030

Electrolysis and PEM Fuel Cell Combination

Li-Batteries Storage Costs in 2020

Reversible Fuel Cell

Hydrogen outcompetes Li-Ion batteries when storage capacity is:

>1,500 MWh for a reversible fuel-cell
>3,000 for an electrolysis with PEM fuel cell

These graphs come from an H2@Scale CRADA sponsored by Exelon and FuelCell Energy, which was cost shared by NE-IES and EERE-HFTO. The objective of the study was to complete a technical and economic assessment of a nuclear power plant that would operate flexibly producing hydrogen and electricity. NREL and INL first developed a synthetic time history of grid pricing. This was used to determine how large to scale a hydrogen plant with storage to supply hydrogen to an industrial customer while sending electricity to the grid at times of peak demand when the price of electricity is high.

In this manner, nuclear plants can be profitable while firming the renewable energy as it is built up over time.

The project used the computational tools of NREL and INL to complete this first-time analysis. It is an example of how integrated energy systems can be developed and built with confidence in financial, social, and environmental outcomes.

The discounted cash flow parameters include Net Present Value (NPV) which need to be positive at some point early in the project.

Internal Rate of Return (IRR) needs to be 10% or higher to get investors to participate in a project

Need to have a low Value and Risk (VAR)- This is assured by nuclear plants production costs being highly stable and predictable.

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Leading Options for Scalable Industrial Processes

CO₂ Recycle

Fertilizer

Iron & Steel

Plastics & Resins

Fuels

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Modular Electrochemical Systems Provide Flexibility:

H₃C

CH₃

Electrochemical Cell

H₂

Natural Gas Alkanes

Ethane

Propane

Butane

H₂C

CH₂

Monomers

Ethylene

Propylene

Butene

Nuclear Reactor

Electricity

Heat

De-Protonation of Alkanes

Scalable / Modular

Autonomous

Unit Operations

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Decarbonization the Steel Industry

https://www.midrex.com/assets/user/media/Midrex_2017_DFM3QTR_FinalPrint.pdf

Midrex^® Voestalpine HBI plant

Corpus Christi, Texas/USA

POSCO Electric Arc Furnace

Changwon, Korea

MIT White Paper: Rob Frieda, 2022

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An example: modular ammonia plants

Hydrogen production using electrolysis
Small scale application ~ 1 MW
Simplified process minimizes large capital costs
Scalable to fit on-site local demand
Support with micro-reactor for independent package

3.0 tonne/day skid-mounted production system

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Fischer-Tropsch (FT) fuels production

Coal-to-liquids (CTL) plants: Sasol’s Sasolburg I and II plant, South Africa
Gas-to-liquids (GTL) Shell's plant, Malaysia
GTL and Ethane Cracker Complex, Sasol’s plant, Louisiana, U.S.

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TEA: impact of H₂ cost

MSFP= Minimum fuel selling price

GGE=Gasoline gallon equivalent

DGE=Diesel gallon equivalent

FT MFSP per GGE and DGE
H₂, $/kg	3.00	1.15	1.00
CO₂, $/MT	24.9	24.9	24.9
FT ($/gal-FT mixture)	5.42	2.78	2.57
FT ($/GGE)	5.23	2.68	2.48
FT ($/DGE)	6.04	3.10	2.86

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Carbon from a Broad Spectrum

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TEA: impact of CO₂ cost

FT MFSP per GGE and DGE
H₂, $/kg	2.00	2.00	2.00	2.00
CO₂, $/MT	0	24.9	59.1	112.6
FT ($/gal-FT mixture)	3.77	4.00	4.30	4.78
FT ($/GGE)	3.64	3.86	4.15	4.62
FT ($/DGE)	4.20	4.45	4.79	5.33

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Potential synfuel production by nuclear power capacity

Nuclear reactor scale	Large (300~1,000+MW)	Small (20~300MW)	Micro (1~20MW)

H₂ production from HTE (efficiency 80%)	170~580 metric ton/day	12~170 metric ton/day	0.6~12 metric ton/day
FT fuel production	270~910 metric ton/day	18~270 metric ton/day	0.9~18 metric ton/day
FT fuel production	98,000~330,000 gal/day	6,500~98,000 gal/day	330~6,500 gal/day

Nuclear reactor scale information from Shannon Bragg-Sitton and Richard Boardman 08/12/2021 Next Generation Nuclear Energy -Advanced, Small and Micro-Modular Reactors (SMRs and MMRs)

Synfuel synthetic plant evaluated by ANL

Nuclear power	H₂ production	FT fuel production
440 MW	255 metric ton/day	185,000 gal/day

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Nuclear supported “blue hydrogen”

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Nuclear Enhancement of Fossil-Fired Units

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A new Paradigm: Industrial Complexes with Embedded Nuclear

Target Large Industries

Transportation fuels
Fired heaters / Steam boilers
Iron & Steel
Fertilizers
Minerals
Polymers & Plastics

Industrial energy needs

Electricity
Steam
Heat (Thermal Power)

Keys to success

Hydrogen is key energy carrier
Flexible operations are needed to support the grid

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Electrolysis using Nuclear Power

System can provide spinning/ non-spinning reserve capacity to the grid by simply turning down the electrolysis plant

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https://ies.inl.gov

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Hydrogen is a DOE Priority

Hydrogen is central to the Department of Energy’s clean energy strategy
DOE Hydrogen Fuel Cell Technologies Office Hydrogen Earthshot

Announced by DOE Secretary Granholm in 2021
Goal to reduce the cost of hydrogen to $1/kg in one decade

Infrastructure Investment and Jobs Act

Signed into law on November 15, 2021 by President Biden
Section 813. Regional Clean Hydrogen Hubs

Support the development of at least 4 regional hydrogen hubs
Demonstrate the production, processing, delivery, �storage and end-use of clean hydrogen
Each hub eligible for up to $2 billion in federal support

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Regional Clean Hydrogen Hubs

Feedstock Diversity

At least one hub demonstrating clean hydrogen production from each of the following sources (i.) fossil fuels, (ii.) renewable energy, (iii.) nuclear energy

Employment

Priority given to regional clean hydrogen hubs that are likely to create opportunities for skilled training and long-term employment to the greatest number of residents in the region

DEI

Expected that DOE will require a plan for diversity, equity, and inclusion (jobs and improving the quality of life in under served communities)

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�Regional Clean Hydrogen Hubs

End-Use Diversity

At least one regional clean hydrogen hub shall demonstrate the end-use of clean hydrogen in:
Electric Power Generation
Industrial
Residential and Commercial Heating
Transportation

Geographic Diversity

Each regional clean hydrogen hub:

Shall be located in a different region of �the U.S.
Use energy resources that are abundant �in that region

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https://hydrogencouncil.com/wp-content/uploads/2021/02/Hydrogen-Insights-2021-Report.pdf

>200 projects have been announced globally; >80 Billion U.S.$
Hydrogen production costs are declining faster then previously thought
Low shipping costs from major hydrogen supply centers could unlock demand
Falling clean hydrogen and application-specific costs will drive greater

cost-competitiveness in hydrogen end applications

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International H₂ Market Price�without and with $100/tonne carbon tax

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Comparison of U.S. Industry Energy Use

8% of CO₂ Emissions World-Wide

16% of CO₂ Emissions World-Wide

3% of CO₂ Emissions World-Wide

6% of CO₂ Emissions World-Wide

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Hybrid Options: �Dynamic Coupling with the Grid

Hybrid systems provide spinning/ non-spinning reserve capacity to the grid by simply turning down the electrolysis plant

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Nuclear Enhancement of Fossil-Fired Units

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Business Sensitive

Energy Products and Services

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Nuclear–Carbon Conversion Case Study

Goal: Use an advanced reactor to generate steam, heat, and electricity for a coal conversion plant.

Representative coal conversion process

Dry coal and drive off as much mercury as possible
Mechanical process to fracture the coal and separate mineral matter
Pyrolysis
Oil/gas processing
Syngas refining

Methanol
Alcohols
Polymers

https://ies.inl.gov

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Electro-Chemical Technology Development & Commercialization

Advanced Synthesis & Bulk Supply of Powders

HT R2R & Additive Manufacturing

Electro Catalysis

High Throughput Materials Testing

Electrode Engineering & Diagnosis

Industrial scale SPS/EFAST

Large Stack Testing

Pilot Plant and Commercial Scale Demonstration

Materials Development and Technology Innovation

Commercial Prototypes

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INL Energy Systems Laboratory

Battery Testing

(out of picture)

Wireless

Charging

High Temperature

Electrolysis

Fast

Charging

Thermal Energy Delivery System

Includes Thermal Energy Storage

Distributed Energy

& Microgrid

MAGNET

“Microreactor Agile Nonnuclear

Experiment Testbed”

Human Systems Simulation Lab

(out of picture)

Digital, Real-Time Grid Simulation

Power Emulation

Energy Storage

Vehicles

Hydrogen

Power Plant Operations

Power Systems

INL is involved in three exciting partnerships that could help transform the nuclear energy industry. They involve hydrogen production.

Hydrogen is versatile and can play a major role in decarbonizing major energy sectors while providing another source of income to the nuclear industry.
INL is working with Xcel Energy to demonstrate a system that uses a nuclear plant’s steam and electricity to make hydrogen, which could be used at the plant or, eventually, sold to other industries, including those that produce steel and ammonia.
INL is working with Energy Harbor’s Davis-Besse nuclear plant in Ohio, on a two-year project that will demonstrate a low-temperature electrolysis unit to produce commercial quantities of hydrogen.
INL also is working with Arizona Public Service, which operates the Palo Verde Generation Station and is evaluating the integration of nuclear energy with hydrogen production.

The ESL IES for hydrogen/thermal integration will be all set by June. We have promised Bloom Energy it will be done to test a unit they will be sending to us.

– Richard Boardman

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Incrementally Provisional Commodities �Line-Up for a Sustainable Community

SOEC & Co-Electrolysis

H₂

H2 Refueler

Underserved Community Power

Microgrid-Solar / H2 Fueled RSOFC

Thermal Energy Storage

Campus Space Heat

H2 Feedstock

Sustainable Ammonia/ Urea

Sustainable Aviation / Diesel Fuel

Decarbonized Chemicals / Fuels

FCEV Coach/

Bus

H₂

H₂/ Synfuel

MOBILE CHARGING STATION

Process Heat

Campus Power

& Syngas

Micro-Reactor

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