Techno-Economic Analysis of Low-Carbon Hydrogen Production Pathways for Decarbonizing Steel and Ammonia Production: Article No. 100338

Low-carbon hydrogen can play a key role in decarbonizing steel and ammonia production. Here, we report a techno-economic and life-cycle emissions analysis of different hydrogen production routes for steelmaking via direct reduced iron-electric arc furnace and ammonia synthesis for five locations with estimated technological progress through 2035 and considering a range of Inflation Reduction Act (IRA) tax credits. Our results show that these credits can make off-grid renewable-driven electrolytic hydrogen production competitive with fossil-based routes for decarbonizing steel and ammonia in several locations within the current decade and that off-grid electrolytic hydrogen production could potentially be cost competitive with fossil-based routes in Texas and Minnesota by 2035 even without incentives. Furthermore, with maximum IRA tax incentives, off-grid electrolytic hydrogen production is competitive with fossil-based hydrogen production routes with current technology costs. Strong renewable energy resources, access to low-cost hydrogen storage, and proximity of process feedstocks are all critical for enabling these decarbonization opportunities.