Paul Rodden • Season: 2025 • Episode: 408
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Welcome to The Hydrogen Podcast!
Tired of the hydrogen hype? So are we. In this episode of The Hydrogen Podcast, recorded after World Hydrogen North America, we’re putting the spotlight back on what’s feasible now—not what might work in 10 years.
🎯 Main Focus:
Let’s stop talking about hydrogen’s future. Let’s start using what works today.
🔥 What’s Inside This Episode:
🧪 1. Most Practical Hydrogen Production: SMR + CCS
Efficient & scalable at 65-75%
Produces hydrogen at $1.50–$2/kg (before credits)
Near-zero NOx, SOx, and PM2.5 emissions
$60–$70M profit for a 100-MW plant with 20,000 tons/year
🛢️ 2. Storage That Works: TOL/MCH (LOHC)
6.2 wt% H2 stored safely in liquid form
No need for cryogenics or compression
$150–$200M for a 10,000-ton system
Perfect for regions without salt caverns or H2 pipelines
🏭 3. Real-World Use Cases: Steel & Ammonia
Steel: Hydrogen DRI replaces coal, slashing CO2 by 90%
Ammonia: 13M tons annually in U.S.—ready for blue hydrogen now
Marine fuel potential: zero NOx/SOx, 5M tons reduction possible
These applications are already operating or in pilots
📊 Feasible, Profitable, Scalable
$6–$7B investment yields $800M in profits
5,000 new jobs
8M tons of emissions eliminated annually
Potential to capture 60% of the $500B hydrogen market by 2030
🧠 Why It Matters:
While some push photocatalysis and gigawatt electrolysis, we need to scale what’s viable today:
✅ Blue Hydrogen
✅ LOHCs
✅ Steel & Ammonia
Don’t let perfect be the enemy of progress.
💬 “Let’s keep researching—but let’s deploy the tech that works now.”
If you’re serious about building a real hydrogen economy, this episode is for you.
📩 Got thoughts? Email us: info@thehydrogenpodcast.com
👍 Like, comment, and subscribe to support the mission of realistic, impactful hydrogen adoption.
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Respectfully,
Paul Rodden
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NEW TO HYDROGEN AND NEED A QUICK INTRODUCTION?
Start Here: The 6 Main Colors of Hydrogen
Transcript:
After my time at S&P Global’s World Hydrogen North America conference, I came away with a clear mission statement. The hydrogen economy needs to stop prioritizing what’s possible and start focusing on whats feasible. The hydrogen sector is buzzing with futuristic visions—think gigawatt-scale solar-powered electrolyzers or hydrogen-powered aviation—but too often, these ideas overlook the technologies we can deploy now to make a real impact. And so today, I’ll zero in on the best current technologies, the cheapest production methods that maintain low to zero carbon intensity, practical storage solutions, and real-world applications, including hydrogen derivatives like ammonia and methanol. I’ll also address particulate emissions like NOx, SOx, and PM2.5, which are often ignored in the hydrogen hype. While we absolutely need to keep researching and developing new technologies, we can’t sacrifice the potential of what’s already feasible. All of this on todays Hydrogen Podcast
In our first segment, I’m zeroing in on hydrogen production methods that are feasible today, balancing cost, scale, and low carbon intensity. The establishment narrative pushes green hydrogen via electrolysis as the holy grail, but let’s be real—electrolyzers powered by renewables are often intermittent, and at $5-$6/kg, green hydrogen struggles to compete economically. Instead, the most practical, scalable, and cost-effective method right now is steam methane reforming (SMR) with carbon capture and storage (CCS), often called blue hydrogen. SMR uses natural gas and steam to produce hydrogen, and when paired with CCS, it can achieve low-to-zero carbon intensity while leveraging existing infrastructure.
Let’s break down the tech. SMR reacts methane with steam at 700-1,000°C over a nickel catalyst, producing 3-4 kg of hydrogen per kg of methane, with an efficiency of 65-75%. Without CCS, SMR emits 9-11 kg CO2/kg H2, but modern CCS systems capture 90-95% of emissions, reducing the carbon intensity to 1-2 kg CO2/kg H2, well below the EU’s low-carbon threshold of 3.4 kg CO2/kg H2. Particulate emissions are minimal—SMR with CCS produces near-zero NOx, SOx, and PM2.5, as the process occurs in a controlled reactor, unlike combustion-based systems that emit 1-2 g/kWh NOx and 0.1-0.2 g/kWh PM2.5, per the International Maritime Organization. The captured CO2, around 10 million tons/year for a 1 million ton H2 plant, can be stored in depleted gas reservoirs or salt caverns, which hold up to 6 TWh of energy equivalent, per studies on underground storage.
Economically, SMR with CCS shines. A 100-MW plant, costing $400-$600 million, produces 20,000 tons of hydrogen annually. At $5-$6/kg, that’s $100-$120 million in revenue, with production costs at $1.50-$2/kg (adjusted for 2025 natural gas prices and CCS costs), netting $60-$70 million profit (15-20% IRR). The Inflation Reduction Act’s 45V credit ($3/kg) reduces effective costs to $2-$3/kg, making blue hydrogen competitive with gray hydrogen ($1-$2/kg) while slashing emissions. Scaling to 1 GW—$4-$6 billion—produces 200,000 tons/year, creating 3,000-4,000 jobs and adding $200-$300 million to local economies, per U.S. Department of Energy estimates. The U.S. hydrogen market, $15 billion in 2025, could see blue hydrogen dominate 50% ($7.5 billion) by 2030, per McKinsey projections.
The narrative that green hydrogen is the only path ignores reality—SMR with CCS leverages 100 trillion cubic feet of U.S. natural gas reserves, per the EIA, and existing pipelines, unlike green hydrogen’s need for new infrastructure. However, challenges remain: CCS adds $0.50-$1/kg to costs, and methane leakage above 4% can negate carbon benefits, per Nature Communications studies. Still, SMR with CCS is the feasible choice today, cutting 1,000 Mt CO2/year from current hydrogen production emissions while avoiding NOx, SOx, and PM2.5 pollution.
Next, let’s talk storage. Hydrogen’s low volumetric density—0.09 kg/m³ at standard conditions—makes storage a challenge, especially for large-scale applications. The establishment often pushes underground storage in salt caverns or compressed gas, but these aren’t universally feasible. Salt caverns, while cost-effective at $0.25-$1.58/kg, are geographically limited, and compressed gas at 700 bar requires expensive tanks—$500/kg H2 for carbon fiber composites. Instead, let’s focus on what’s practical: liquid organic hydrogen carriers (LOHCs), specifically toluene/methylcyclohexane (TOL/MCH) systems, which offer safe, scalable storage using existing liquid fuel infrastructure.
TOL/MCH works by hydrogenating toluene into methylcyclohexane, storing 6.2 wt% hydrogen (47 kg H2/m³), then dehydrogenating it to release hydrogen on demand. The process operates at 150-300°C with platinum catalysts, with an energy penalty of 30% (10 kWh/kg H2 for dehydrogenation). A 3,156-ton H2 storage system, serving a 200 ton/day user, holds hydrogen as MCH in standard tanks—no high-pressure or cryogenic systems needed. The levelized cost of storage is $1.84/kg H2, per Nature Communications, adding modestly to delivery costs in regions like the Midwest, though it’s higher in Central California due to heating costs. MCH is stable, non-toxic, and non-explosive, with a flash point of 6°C, making it safer than ammonia, per safety assessments.
Economically, a 3,156-ton system costs $50-$70 million, storing 50,000 tons of MCH (equivalent to 3,156 tons H2). At $5-$6/kg H2, the stored hydrogen is worth $15.8-$18.9 million, with annual operating costs of $5-$6 million (heating, catalysts), yielding a 10-12% IRR. Scaling to 10,000 tons H2—$150-$200 million—supports gigawatt-scale industrial sites, creating 300 jobs and adding $30 million to local economies. TOL/MCH systems emit no NOx, SOx, or PM2.5 during storage, though dehydrogenation heating (often natural gas) emits 0.5-1 kg CO2/kg H2 unless using renewables. The global LOHC market, $500 million in 2025, could reach $5 billion by 2030, per industry trends.
The narrative of underground storage as the only solution ignores accessibility—LOHCs use existing fuel networks, avoiding the $1 million/km cost of new hydrogen pipelines. Challenges include the energy penalty and catalyst costs ($10,000/kg platinum), but TOL/MCH is feasible now, enabling hydrogen distribution without massive infrastructure overhauls.
Now, let’s explore applications, focusing on heavy industry and hydrogen derivatives like ammonia, which are feasible today. Hydrogen’s biggest impact is in hard-to-abate sectors like steel and chemicals, where direct electrification isn’t practical. Let’s start with steelmaking, which emits 2.6 billion tons CO2/year globally, per the IEA. Hydrogen can replace coal in direct reduced iron (DRI) processes, cutting emissions by 90%. A 1 million ton/year steel plant using 50,000 tons of blue hydrogen (from SMR with CCS) reduces CO2 emissions by 1.5 million tons annually, with zero NOx, SOx, or PM2.5 versus coal’s 1-2 g/kWh NOx and 0.1-0.2 g/kWh PM2.5, per EPA data. At $5-$6/kg, hydrogen costs $250-$300 million/year, but carbon credits ($50/ton CO2) and efficiency gains save $100 million, netting a $50 million profit (10% IRR).
Next, ammonia production—a hydrogen derivative—offers massive potential. The U.S. produces 13 million tons of ammonia yearly, needing 130 million tons of hydrogen, per the USDA. Using blue hydrogen at $5-$6/kg, ammonia costs $600/ton versus $500/ton with gray hydrogen, but cuts 1.3 million tons of NOx (10 kg/ton ammonia) and 5 million tons CO2. A 1 million ton/year ammonia plant uses 10,000 tons of hydrogen ($50-$60 million), generating $600 million in revenue, with $100 million profit (15% IRR) after 45V credits. Ammonia also serves as a marine fuel, powering ships with zero NOx/SOx emissions, reducing maritime pollution by 5 million tons NOx yearly, per IMO estimates.
Economically, a $1 billion investment in hydrogen-based steel and ammonia plants creates 2,000 jobs and adds $150 million to local economies. The global ammonia market, $80 billion in 2025, could see 20% ($16 billion) from blue hydrogen by 2030. The narrative that hydrogen derivatives are futuristic ignores their current use—ammonia is already a traded commodity, and steelmakers like ArcelorMittal are piloting DRI with hydrogen. Challenges include retrofitting plants ($500 million/steel plant) and ammonia’s toxicity, but these applications are feasible now, delivering immediate emission reductions.”
Let’s tie this together. SMR with CCS produces 200,000 tons/year of low-carbon hydrogen at $5-$6/kg, cutting 1,000 Mt CO2 and eliminating NOx/SOx/PM2.5 emissions. TOL/MCH stores 10,000 tons H2 for $150-$200 million, enabling distribution with minimal environmental impact. Applications in steel and ammonia use 60,000 tons H2, saving 6.5 million tons CO2 and 1.3 million tons NOx, creating 5,000 jobs and adding $380 million to economies. Together, these feasible solutions reduce 8 million tons of particulates annually, proving hydrogen’s immediate potential.
Technically, SMR with CCS (65-75% efficiency) pairs with TOL/MCH (6.2 wt% H2) to supply steel (50 kg H2/ton steel) and ammonia (8-10 tons H2/ton NH3), with zero tailpipe emissions. Economically, $6-$7 billion in investments yield $800 million in profits, despite higher hydrogen costs. The $500 billion hydrogen market by 2030 could see 60% ($300 billion) from blue hydrogen, LOHCs, and industrial applications.
The establishment pushes exotic solutions like photocatalytic water splitting, but these are years away—photocatalysis yields 1-2 mmol H2/g catalyst, per ScienceDirect, versus SMR’s 200,000 tons/year. We must continue researching these technologies—high-temperature electrolysis or metal hydrides like MgH2 ($2.8/kg storage)—but not at the expense of what works now. SMR with CCS, LOHCs, and industrial applications are feasible, scalable, and ready to deploy, delivering real emission reductions without waiting for the ‘perfect’ solution.”
Alright, that’s it for me, everyone. If you have a second, I would really appreciate it if you could leave a good review on whatever platform you listen to. Apple podcasts, Spotify, Google, YouTube, etc. That would be a tremendous help to the show. And as always if you ever have any feedback, you are welcome to email me directly at info@thehydrogepodcast.com. So until next time, keep your eyes up and honor one another.
