California’s Hydrogen Hub: Meeting 2030 Demand

For California to meet its goal of net zero emissions by 2045, it must decarbonize its transportation sector, which accounts for 50% of the state’s carbon emissions. However, current electric vehicle batteries are not equipped to suit the needs of larger vehicles, like freight trucks or buses. Green hydrogen, or hydrogen made from renewable electricity and water, can fill this gap. However, green hydrogen is currently produced in lesser quantities than carbon-intensive fuels, such as diesel, making green hydrogen an unaffordable fuel option. Our project aims to understand how to expand green hydrogen supply networks to reduce its cost. We do this by (1) estimating optimal siting locations, production quantities, and supply prices of hydrogen in 2030, (2) evaluating statewide cost differences between centralized and distributed hydrogen production networks, and (3) assessing barriers that limit the competitiveness and speed of adoption for hydrogen as an alternative fuel. To achieve these objectives, we created a geospatial model to analyze the hydrogen production potential of each county and determined the amount of hydrogen needed to meet demand. Then we calculated the levelized cost of hydrogen (LCOH) from energy prices, capital costs, and distribution costs through trucking. We found that a distributed network had lower total LCOH values than a centralized network due to the system's lower distribution costs. Ultimately, our project provides the state with the potential hydrogen hub buildout solutions necessary to make green hydrogen cost-competitive so California can decarbonize the transportation industry and provide a healthy environment for all Californians.

Acknowledgements

UC Santa Barbara Bren School: Dr. Ashley Larsen, Associate Professor; Dr. Frank Davis, Distinguished Professor Emeritus; Dr. Mark Buntaine, Professor; Ranjit Deshmukh, Assistant Professor; Roland Geyer, Professor; Eric Masanet, Professor and Mellichamp Chair in Sustainability Science for Emerging Technologies

California Governor’s Office of Business and Economic Development: Tyson Eckerle, Senior Advisor; Gia Vacin, Deputy Director, ZEV Market Development

County of Santa Barbara: Das Williams, First District Supervisor; Kadie McShirley, District Representative

Dr. Lewis Fulton, Director, Institute of Transportation Studies, UC Davis

Dr. Jeffrey Reed, Chief Scientist, Clean Energy Institute, UC Irvine