Integrated Carbon Capture and Storage in Hydrogen Production: A Combined Techno-Economic and Life Cycle Assessment

This paper presents a coupled techno-economic and life cycle assessment of “blue” hydrogen to be produced at a hydrogen facility through steam methane reforming (SMR) equipped with carbon capture and storage (CCS). Blue hydrogen was modeled in ChemCAD, while an integrated asset model represented the carbon capture and storage chain. An unabated carbon dioxide (CO2) configuration release 11.99 kgCO2-eq/kgH2. Capturing ≥95% of the CO2 stream lowers the carbon footprint to 6.59 kgCO2-eq/kgH2 but raises the levelized cost of hydrogen (LCOH) from $1.82/kgH2 (no CO2 capture) to $3.22/kgH2; the U.S. 45Q tax credit reduces it to $2.59/kgH2. Incorporating CCS reduces the levelized net present value from $0.87/kgH2 to $0.74/kgH2, owing to additional capture, transport, and storage costs. Supplying SMR with low-carbon electricity, especially nuclear, wind, or hydro, delivers the lowest carbon footprint relative to geothermal or grid mixes. Sensitivity analysis identifies that hydrogen sales price, internal rate of return, and CCS cost as the strongest economic levers, while electricity demand dominates residual lifecycle emissions. The results underscore a clear trade-off; substantial CO2 reductions are achievable, but only with higher production costs, making supportive policy instruments, access to clean power, and robust hydrogen markets essential for large-scale deployment of blue hydrogen.