The cost of hydrogen production from natural gas mainly includes two aspects: variable costs and fixed costs. The comprehensive cost of hydrogen production from natural gas is related to the project service life, natural gas price, and annual production capacity. Therefore, relevant engineering projects should fully understand the natural gas price, hydrogen demand, and other conditions before implementing natural gas hydrogen production projects.
As a manufacturer of natural gas hydrogen production units, Suzhou Jiarui Gas will explain the cost composition of natural gas hydrogen production units in detail:
Variable Costs
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Cost of Deionized WaterThis cost is determined based on actual operation. Taking a factory as an example, the factory consumes 1.4 kg of deionized water to produce 1 cubic meter of hydrogen. At a current market price of 0.05 yuan per kilogram, the deionized water cost for producing 1 cubic meter of hydrogen is 0.07 yuan.
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Cost of Cooling WaterCooling water cost is also determined by actual operation. For the same factory, 5 kg of cooling water is consumed per cubic meter of hydrogen produced. At a market price of 0.003 yuan per kilogram, the cooling water cost is 0.015 yuan per cubic meter of hydrogen.
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Electricity CostBased on actual operation, the factory consumes 0.34 kW·h of electricity to produce 1 cubic meter of hydrogen. At an electricity price of 0.6 yuan/kW·h, the electricity cost is 0.204 yuan per cubic meter of hydrogen.
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Natural Gas CostThe factory consumes 0.49 cubic meters of natural gas to produce 1 cubic meter of hydrogen. The formula for calculating natural gas cost per cubic meter of hydrogen is:C₁ = 0.49 × PWhere:C₁ = natural gas cost per unit volume of hydrogen under standard conditionsP = unit volume price of natural gas
Finally, the total variable cost formula is obtained by summing the above costs:
Cᵥₐᵣ = 0.07 + 0.015 + 0.204 + 0.49P = 0.289 + 0.49P
Fixed Costs
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Depreciation CostTaking the same factory as an example, assuming a total investment I of 50,000,000 yuan, a service life t of 18 years, and a discount rate i of 5%, total annual depreciation is calculated as:C₃ = I(1+i)ⁿ / tSubstituting values into the formula, the annual depreciation cost is 2.92 million yuan.
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Maintenance CostMaintenance cost is 0.005 yuan per unit volume of hydrogen. Annual maintenance cost is calculated as:C₄ = 0.005VWhere V = annual hydrogen production volume of the factory (m³/year).
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Labor CostAssuming the project requires 15 employees with an annual salary (including bonuses) of 100,000 yuan per person, the total annual labor cost is 1,500,000 yuan.
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Marketing and Administrative ExpensesMarketing expenses account for 2.5% of variable costs, and administrative expenses account for 3.5%. The annual formula is:C₅ = 0.06(0.289 + 0.49P)V
Thus, total fixed cost is:
Cբᵢₓ = 4,420,000 + 0.005V + 0.06(0.289 + 0.49P)V
Total Cost
The total cost of hydrogen production (Cₜₒₜ) is:
Cₜₒₜ = Cᵥₐᵣ + Cբᵢₓ/V = 0.289 + 0.49P + Cբᵢₓ/V
It can be seen from the above formulas that the total cost of hydrogen is related to the plant’s annual hydrogen output and natural gas price.
The above information is compiled and released by Suzhou Jiarui Gas, a manufacturer of natural gas hydrogen production units.
Suzhou Jiarui Gas System Co., Ltd. is a technology-oriented enterprise specializing in the research and development of gas separation and purification technologies. All technologies have reached advanced domestic levels. Product quality and after-sales service are highly praised by customers. We look forward to cooperating with you.