Feasibility of an Urban Hydrogen Hub: Enhancing Grid Flexibility and Resilience with Low Carbon Production

Abstract

This paper investigates the establishment of an urban Hydrogen Hub in Toronto, Canada, strategically situated near major transportation corridors. The study focuses on high-temperature water electrolysis powered by a surrogate heat source, simulating conditions akin to a nuclear power plant. The proposed hub consists of a 1.1-MW solid oxide electrolyzer cell (SOEC) pilot system, a 250-kW solid oxide fuel cell (SOFC) for power generation, and a hydrogen refueling station. Higher capacity SOEC systems were also simulated. The results reveal that a high-power system outperforms a low-power system economically, with the stack cost dominating the capital cost. The electricity cost emerges as the most significant factor contributing to the hydrogen cost. If a high-power system can be installed to utilize heat and electrical input from a low-carbon nuclear power plant nearby, the cost of hydrogen produced can be as low as $7.12 CAD/kgH₂, emphasizing the economic viability of this approach.