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Integrated Analysis of Low-Carbon Hydrogen Production in Wyoming: Economics and Resources, and Social Impacts


Abstract The U.S. government is prioritizing clean energy transition due to climate change and energy security concerns. Low-emission hydrogen is gaining attention for its high energy density and low life cycle greenhouse gas (GHG) footprint. This study reveals the interconnection among the techno-economics, resource impacts and social factors of low-emission hydrogen production under the Inflation Reduction Act incentive in the state of Wyoming. Supplied with fossil natural gas and electricity from the power grid, the likelihood of the life cycle emissions of less than 4.0 kg CO2-eq/kg H2 is 5.6% for steam methane reforming (SMR) with saline reservoir storage and 11.0% for SMR with carbon capture and utilization, which implies a low possibility of the eligibility for such hydrogen projects to claim the 45V tax credit. However, such hydrogen projects can economically benefit more from the 45Q tax credit than the 45V tax credit. If claimed, the 45Q tax credit decreases the LCOH by 19%. If 10% of the state's annual marketed natural gas production capacity were used as feedstock, the cluster would annually produce 0.62 million metric ton of hydrogen. The Powder River Basin and the Greater Green River Basin are the desired locations to site hydrogen production plants in terms of co-location and co-availability of the multiple natural resources and infrastructures. Developing a hydrogen cluster can directly create more than 2400 construction jobs and 240 permanent jobs in Wyoming.
Authors Zitao Wu University of WyomingORCID , Haibo Zhai University of WyomingORCID
Journal Info RELX Group (Netherlands) | SSRN Electronic Journal
Publication Date 1/6/2025
ISSN 1556-5068
TypeKeyword Image article
Open Access closed Closed Access
DOI https://doi.org/10.2139/ssrn.5069685
KeywordsKeyword Image Carbon tax (Score: 0.48312613) , Carbon credit (Score: 0.43012023)