Hydrogen production merchant

Hydrogen for industrial facilities is mainly produced where it is also immediately used (so-called captive hydrogen ). Only around 5% of total hydrogen production is sold on the free market and transported in liquid or gaseous form in trailers or pipelines (so-called merchant hydrogen ). Hydrogen pipelines have already been operated by the chemical industry in the United States and in Europe (particularly Germany, France and the Netherlands) for decades (see also Chapter 12). 

Two sources estimate that merchant hydrogen production in the USA constitutes 10% to 12% of total hydrogen production163,165. (Note Merchant hydrogen refers to hydrogen that is produced by one company and sold to another.) From 1994 to 1999 merchant hydrogen production grew at a rate of... 

The United States total hydrogen production was 3006 billion standard cubic feet in 1996, according to data compiled by SRI Consulting. Of this, captive production accounted for the overwhelming share, including 1211 billion scf for ammonia production, 1120 billion scf for refinery use, 302 billion scf for methanol production, and 117 billion scf for other uses. Merchant production —production for sale to outside customers (such as NASA and the electronics companies) by industrial gas companies such as Air Products and Chemicals and Praxair—accounted for only 255 billion scf of hydrogen, according to SRI. 

The big growth in demand led Air Products and Chemicals and Praxair to construct several very large hydrogen production plants in order to serve refineries and other customers in the United States. Because of the higher production capacity, SRI expects the growth rate of merchant hydrogen sales to drop to about 10 percent per year between 1996 and 2001. 

Current world hydrogen prodnction is approximately 50 milhon tons per year (45 billion kg per year), which represents 2% of world energy demand (Raman, 2003). However, cnrrent total annnal worldwide hydrogen consumption is in the range of 400-500 billion Nm Of this qnantity, approximately 97% is represented by captive or internal production and only about 3% is provided from merchant sonrces (MEDI, 2003). 

Ignoring the cryogenic liquid market (e.g., rocket fuel) that accounts for 7% of the merchant market, in 2003 the total U.S. merchant hydrogen gas capacity was about 1 500 M Standard Cubic Feet (SCF)/day. Most of this merchant production capacity (92%) was located in three slates Texas with 560 M SCF/day, Louisiana with 440 M SCF/day, and California with 380 M SCF/day [5,6]. Also, the Chemical Market Reporter [5] writes, Another 3 billion SCF per day of captive hydrogen capacity exists at 145 locations in the US. Therefore, in 2003 the U.S. had a total capacity of about 4 500 M SCF/cUy, or about 127 M mVday. 

The desired products are synthesis gas mixtures of various hydrogen to carbon monoxide ratios, pure hydrogen, pure carbon monoxide and carbon dioxide. Although carbon dioxide is sometimes recovered as a byproduct and sold on the merchant market, it is not currently used as a feedstock for petrochemical production. The others, however, are important petrochemical feedstocks. 

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