Design report: Blue Hydrogen to improve the atmosphere (BIA)

This document summarizes the FEL-2 design phase for a blue hydrogen production facility in Killona, Louisiana near New Orleans. The goal of this design phase was to develop a process capable of meeting business objectives of company A with an emission-conscious blue hydrogen product, as well as estimating the fixed capital investment to adequately assess the overall economic viability. This includes a summary of the process design, an economic evaluation, and recommendations for implementation. Under the new Inflation Reduction Act, the generation of blue hydrogen with a carbon capture system has become a more economical proposition with the introduction of either the 45Q carbon capture tax credit or the 45V tax credit for clean hydrogen production. These both can be used to further incentivize clean hydrogen production. The proposed facility will produce a 99.9+% hydrogen product stream to be sold via pipeline after purification in a pressure swing adsorption (PSA) unit. The hydrogen production will occur largely within an autothermal reformer (ATR), which will produce a hydrogen rich syngas stream from a natural gas feed stream and steam. Upstream from the ATR, a pre-reformer will convert higher hydrocarbons and some methane to CO2 and H2 gas, while downstream water-gas shift (WGS) reactors will convert any incomplete combustion products like CO into CO2 and H2. Approximately 99.4% of the CO2 generated in these steps will then be captured within a monoethanolamine (MEA) absorption column. This significantly reduces the carbon footprint compared to the traditional grey hydrogen production pathways. The carbon footprint is improved by meeting energy consumption requirements through a combination of energy integration from excess produced hydrogen as well as nuclear power from the preexisting Waterford Unit 3 reactor outside Killona. After 60 days of process design, safety optimization, and economic analysis, we present the following design. The design economics match sales cases of current market blue hydrogen production and are supported by its historical pricing, though this is different from those provided in the FEL-1 design phase. At an anticipated hydrogen sale price of $2.80/kg this project can meet the standards of 15% ROR and a positive NPV, meeting investment criteria. The team conducted net present value and sensitivity analyses of major process variables to better understand the critical factors affecting final outcomes. This design recommendation was prepared with all project requirements, restrictions, regulations, construction plans, and utility considerations provided in the FEL-1 design. A preliminary hazard and operability study (HAZOP) was also conducted to assist FEL-3 in risk mitigation strategies.