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DOE OSTI2022

Evaluating the Impacts of the Bipartisan Budget Act of 2018 45Q Tax Credit on CCS Network Costs

This study evaluates the impact of the Bipartisan Budget Act of 2018 (BBA)-amended 45Q tax credit on integrated carbon capture and storage (CCS) networks for source types and geologic storage reservoirs common to the north-central U.S. The integrated CCS networks evaluated were chosen to closely replicate those in the forthcoming National Energy Technology Laboratory (NETL) central U.S. CCS cost options study’s Northwest CCS Network Regional Impact Area (Northwest Impact Area).

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2024

Hybrid power plant design for low-carbon hydrogen in the United States

In this study, we provide a nationwide techno-economic analysis of clean hydrogen production powered by a hybrid renewable energy plant for over 50,000 locations in the United States. We leverage the open-source Hybrid Optimization Performance Platform (HOPP) tool to simulate the hourly performance of an off-grid wind-solar plant integrated with a 1-GW polymer exchange membrane electrolyzer system. The levelized cost of hydrogen is calculated for varying technology costs, and tax credits to explore cost sensitivities independent of plant design, performance, and site selection. Our findings suggest that strategies for cost reduction include selecting sites with abundant wind resources, complementary wind and solar resources, and optimizing the sizing of wind and solar assets to maximize the hybrid plant capacity factor. These strategies are linked to increased hydrogen production and reduced electrolyzer stack replacements, thereby lowering the overall cost of hydrogen.

08 HYDROGEN↗

DOE OSTI2022

Reliability Constrained Optimal Sizing and Examining Capacity Credit and Alternatives for Renewable Energy Sources

Not Available

42 ENGINEERING↗

DOE OSTI2021

A comprehensive techno-eco-assessment of CO 2 enhanced oil recovery projects using a machine-learning assisted workflow

Carbon dioxide enhanced oil recovery (CO 2 -EOR) projects not only extract residual oil but also sequestrate CO 2 in the depleted reservoirs. Here, this study develops a machine-learning-based workflow to co-optimize the hydrocarbon recovery, CO 2 sequestration volume and project net present value (NPV) simultaneously. Considering the trade-off relationships among the objective functions, support vector regression with Gaussian kernel (Gaussian- SVR) proxies are coupled with multi-objective particle swarm optimization (PSO) protocol and generate Pareto optimal solutions. Taking advantage of the high computational efficacy of the proxy model, economic uncertainties introduced by tax credits, capital costs and oil price are investigated by this study. The results indicate that the tax incentive policy (Section 45Q) plays a vital role in enhancing the economic returns of CO 2 -EOR projects, especially under the depression of crude oil market. The proposed workflow has been successfully implemented to optimize a water alternative CO 2 (CO 2 -WAG) injection project in a depleted oil sand in the US. The optimization results yield an incremental oil production of 15.8 MM STB and 1.37 MM metric tons of CO 2 storage in a 20-year development strategy, with the highest project NPV to be 205.6 MM US dollars.

03 NATURAL GAS↗

DOE OSTI2020

Applying Non-Energy Impacts from Other Jurisdictions in Cost-Benefit Analyses of Energy Efficiency Programs: Resources for States for Utility Customer-Funded Programs

Avoided energy and capacity costs are the primary yardstick utilities use to determine which energy efficiency programs are cost-effective for their customers. But sometimes "non-energy impacts" — not commonly recognized as directly associated with energy generation, transmission and distribution — represent substantial benefits, such as improving comfort, air quality and public health. Considering whether and how to include non-energy impacts is an important part of cost-benefit analyses for these programs. This report offers practical considerations for deciding which non-energy impacts to include and how to apply values or methods from other jurisdictions. Researchers reviewed studies quantifying non-energy impacts used in 30 states and applied a five-point system to indicate transferability of a value or method from each study for 16 categories of non-energy impacts: Water resource costs and benefits; Other fuels costs and benefits; Avoided environmental compliance costs; Environmental impacts; Productivity; Health and safety; Asset value; Energy and/or capacity price suppression effects; Avoided costs of compliance with Renewable Portfolio Standard requirements; Avoided credit and collection costs; Avoided ancillary services; Comfort; Economic development and job impacts; Public health impacts; Energy security impacts; Increased reliability. The U.S. Department of Energy’s Building Technologies Office supported this work.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

DOE OSTI2024

Techno-economic and life cycle analysis of synthetic natural gas production from low-carbon H 2 and point-source or atmospheric CO 2 in the United States

Synthetic natural gas (SNG) is of great interest in reducing fossil energy consumption while maintaining compatibility with existing NG infrastructure and end-use applications equipment. SNG can be produced using clean H 2 generated from renewable or nuclear energy and CO 2 captured from stationary sources or the atmosphere. In this study, we develop an engineering process model of SNG production using Aspen Plus® and production scales reported by the industry. We examine the levelized cost and life cycle greenhouse gas (GHG) emissions of SNG production under various CO 2 supply scenarios. Considering the higher cost of H 2 transportation compared with CO 2 transportation, we assume that CO 2 feedstock is transported via pipeline to the H 2 production location, which is collocated with the SNG plant. We also evaluate the cost of CO 2 captured from the atmosphere, assuming the direct air capture process can occur near the SNG facility. Depending on the CO 2 supply chain, the levelized cost of SNG is estimated to be in the range of $\$45–76$ per million British thermal units (MMBtu) on a higher heating value (HHV) basis. The SNG production cost may be reduced to $\$27–57$/MMBtu-HHV by applying a tax credit available in the United States for low-carbon H 2 production (45V). With a lower electricity price of 3¢/kWh for water electrolysis and accounting for a 45V tax credit, the SNG cost reaches parity with the cost of fossil NG. Depending on the CO 2 supply chain, SNG can reduce life cycle GHG emissions by 52–88% compared with fossil NG.

03 NATURAL GAS↗

DOE OSTI2025

Q1-2024 Solar Cost Benchmarks

Each year, the U.S. Department of Energy’s (DOE) Solar Energy Technologies Office (SETO) and its national laboratory partners develop cost benchmarks for U.S. solar photovoltaic (PV) systems. These benchmarks track progress toward reducing solar costs and guide R&D priorities. Unlike typical studies that report only $/W, SETO uses intrinsic units (e.g., $/m² for mounting structures) to better capture how technology improvements such as module efficiency would impact system costs. This allows flexible modeling where inputs can vary significantly to assess cost sensitivity. Costs are reported in two ways: Minimum Sustainable Price (MSP): Long term, financially viable price under stable market conditions. Modeled Market Price (MMP): Actual market price, influenced by short term distortions such as tariffs or subsidies. Three national labs collect cost data from industry stakeholders, ensuring no duplication in outreach to stakeholders. Data reflects real transactions (primarily from Q1) and is weighted based on the number of sources per cost element. The PV System Cost Model (PVSCM) divides total installed system cost into eight categories: 1. Module (PV) 2. Inverter 3. Energy Storage System (ESS) 4. Structural BOS (SBOS) 5. Electrical BOS (EBOS) 6. Fieldwork 7. Office work 8. Other (developer/EPC costs) The first five are hardware costs, while the last three are soft costs. Each category includes fixed and variable cost components, where “size” depends on context (e.g., manufacturing capacity for modules vs. system capacity for installation costs). Variable costs are expressed using appropriate intrinsic units. The model reflects the owner’s upfront overnight capital cost, excluding tax credits. Tariffs and subsidies are treated as temporary market distortions affecting MMP but not MSP. PVSCM is implemented in Excel, where cost elements are aggregated into total system cost. Additional sheets handle unit conversions and operation & maintenance (O&M), with O&M costs levelized over the system’s lifetime.

14 SOLAR ENERGY↗

DOE OSTI2020

Optimizing an Integrated Renewable-Electrolysis System

Hydrogen is a versatile energy carrier that is used in a wide variety of chemical and industrial processes. Producing hydrogen using electrolysis can enable integration of multiple sectors including electricity, heating, and industrial sectors; however, the cost of producing hydrogen from electrolysis remains a challenge for encouraging greater adoption. With growing amounts of renewable generation on the California grid, there is downward pressure on wholesale electricity prices, particularly during the afternoon from photovoltaics (PV). These lower, or even potentially negative prices, challenge the business cases for new and existing PV plants. In addition, as the grid transitions to less flexible generation, there is greater need for system flexibility. To help improve the economics for both solar PV and hydrogen production using electrolyzers, we explore the benefit of combining PV and electrolysis systems. The optimal breakeven hydrogen production cost for six unique market participation configurations is calculated at six candidate locations where PV is already installed. The six market configurations include islanded, separated, retail, net energy metering (NEM), hybrid retail/wholesale and wholesale. Using the Revenue Operation and Device Optimization Model (RODeO) model, the optimal breakeven hydrogen price over the lifetime of the equipment is calculated. The cost includes production, storage, and compression in preparation for gaseous delivery trucks. Revenue streams include the sale of hydrogen, low carbon fuel standard (LCFS) credits, renewable electricity sold to the grid, and Renewable Energy Credits (REC). The costs included are the electricity costs, capital and fixed operation and maintenance cost (FOM) for the electrolyzer, PV, and storage and compression systems as well as taxes and financing costs. In addition, cost reductions are achieved through retail and wholesale rate optimization, by which electricity is purchased at the lowest price and sold, if possible, at the highest price. For all locations, the breakeven hydrogen production cost results show that, in the order of decreasing cost, the system configurations are islanded (highest), separated, NEM, retail, hybrid retail/wholesale, and wholesale (lowest). The resulting system design balances between the capital and maintenance cost components, the operation costs (i.e., electricity costs) and the additional market revenues. The integration of solar PV and electrolysis is shown to provide a mutually beneficial relationship. For PV, integration with electrolysis offers the potential to hedge against wholesale market price volatility, and integration with electrolysis may offer the potential to defer or avoid transmission investment to deliver power to the point-of-use and instead use it on-site. When compared with SMR without considering any renewable hydrogen premiums, this study finds that PV + Electrolysis systems with current costs are likely not competitive; however, with cost reductions for electrolysis equipment consistent with DOE projections, it was found that systems with wholesale market access would be competitive, largely on account of both low capital costs and low-cost electricity. The electrolysis units can provide greater flexibility than is required based on retail rate optimization, so there is an opportunity for a utility or CAISO to increase system flexibility with PV + Electrolysis systems in return for commensurate compensation. In this way, there are potentially several solutions that fall between the hybrid configuration and the wholesale configuration that could provide sufficient compensation for a PV + Electrolysis unit to compete with SMR while also providing greater flexibility to the grid.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2020

Economic Analysis of Integrated Solar Power, Hydrogen Production, and Electricity Markets

decarbonized economy↗

DOE OSTI2025

Roughrider Carbon Storage Hub (Final Report)

The Roughrider Carbon Storage Hub was a 2-year project (October 2023 – September 2025) conducted by the Energy & Environmental Research Center (EERC) focused on advancing the feasibility of a commercial-scale carbon dioxide (CO 2 ) geologic storage hub in McKenzie County, North Dakota. The project’s objective was to investigate the potential that stacked storage complexes (multiple deep saline formations) can safely and economically store at least 50 million tonnes of CO 2 within 30 years. The captured CO 2 would be sourced from industrial emitters including project partner ONEOK, Inc.’s gas-processing plants and a planned gas-to-liquids facility. Drilling of the Roughrider 1 stratigraphic test well (14,979-ft total depth) was completed in November 2024. The wellbore intersected four candidate storage formations: Inyan Kara, Broom Creek, Mission Canyon, and Black Island–Deadwood. Operational challenges, including a stuck drill string, were resolved without long-term impact. A comprehensive logging and coring program was conducted, followed by successful well abandonment and site reclamation. Over 660 ft of 4-in. whole core was retrieved. Core plug samples were processed and analyzed for petrophysical and geochemical properties. Results confirmed promising porosity and permeability in the Inyan Kara and Broom Creek Formations and removal of the Mission Canyon and Black Island–Deadwood horizons from further investigation. Data derived from the logging and coring program were used to improve initial geologic models built from legacy data. CO 2 injection simulations showed that the Inyan Kara alone can feasibly store the target mass of CO 2 . Because of subtle differences in geologic structure and porosity trends between the formations, a stacked storage scenario using the Broom Creek and Inyan Kara Formations resulted in a larger overall plume area than using the Inyan Kara alone. Preliminary CO 2 pipeline routes from the industrial sources were mapped utilizing existing rights of way and evaluated for capacity and cost using U.S. Department of Energy Office of Fossil Energy and Carbon Management/National Energy Technology Laboratory models and U.S. Environmental Protection Agency emissions data. Integrating capture, transport, and storage cost estimates with policy incentives (e.g., 45Q credits) provided a total cost-per-ton analysis. Results indicate that the small scale of the volumes to be transported over the cumulative large distances does not support the project’s financial viability. However, the groundwork laid during this project from geological, regulatory, and social perspectives positions the Roughrider hub site as a promising candidate for commercial carbon storage in North Dakota, especially if the economy of scale is introduced for CO 2 transportation to the hub site.

01 COAL, LIGNITE, AND PEAT↗

DOE OSTI2023

Technical Assessment of Potential Climate Impact and Economic Viability of Biochar Technologies for Small-Scale Agriculture in the Pacific Northwest

The goal of this study is to evaluate the state of biochar technology and determine the feasibility of integrating small-scale biochar production in ways that benefit smaller, diversified producers. Because of the emergence of carbon markets, this innovative climate and agricultural solution may be financed externally, making biochar more accessible to the growers that could benefit. In this report, we review the current state of biochar technology (Section 2), methods for assessing the potential climate impacts derived from its implementation (Section 3), and the current state of carbon-offset mechanisms for biochar technology (Section 4). In Section 5, we apply this knowledge to several specific biochar technology scenarios involving combinations of different feedstocks, production methods, and economic incentives to arrive at estimates of climate-mitigation impacts and costs per carbon credit generated. We conclude with a summary in Section 6.

09 BIOMASS FUELS↗

DOE OSTI2023

Economic and operational investigation of CO 2 sequestration through enhanced oil recovery in unconventional reservoirs in Colorado, USA

The ongoing CCUS commercial projects are highly relied on the support of government incentives due to massive capital investment. Here, this study analyzes the economics of carbon capture utilization and sequestration (CCUS) projects, shows a state-wide CCUS deployment exercise, followed by simulation results of enhanced oil recovery (EOR) based CO 2 storage in unconventional reservoirs. The comprehensive economic analysis of capture, transportation, sequestration costs, enhanced 45Q tax credits, and EOR revenue implies the practicality of CO 2 -EOR to offset the high CCUS costs. With the economics understanding, we study the top CO 2 sources, existing CO 2 pipelines, and sequestration sinks in the state of Colorado, USA. This paper next presents results from EOR simulation in one section of the unconventional Denver-Julesburg (DJ) Basin Niobrara and Codell reservoirs. The simulation model is based on a geological static model, incorporated with hydraulic fracture stimulation, history matched to production, and calibrated to the microseismic and time-lapse surface seismic data. The CO 2 -EOR simulation results show that oil production can be increased and more CO 2 stored with: a longer primary production period; the presence of a shut-in period; higher injection rates; and multi-well injectors. The modeling results show that about 7–10 Mscf of CO 2 will be stored when recovering 1 stb of EOR oil. By adding the enhanced oil revenue and the carbon credits together, it is estimated that the most economic case can generate $\$13$ MM when oil price is assumed to be $\$80$/stb, and the EOR oil revenue is 3.4 times greater than that generated from 45Q incentives. It corresponds to the scenario that a five-year primary production is followed by CO 2 injection into four wells with the sequence of injection (4 MMscf/day for 6 months), shut-in (6 months) and production (12 months). The best practices in this study will provide valuable insights for similar CCUS projects in other unconventional fields. Furthermore, this study defines a term named “Carbon Neutrality Index (CNI)” by comparing the amount of CO 2 stored with that burned by EOR oil. The CNI value of 0 indicates the enhanced oil is carbon neutral; a negative CNI value implies there is a net reduction in carbon emission. The 4-year huff-n-puff (HnP) simulation leads to a positive CNI value, indicating that the EOR oil generated in this process is not carbon neutral yet.

03 NATURAL GAS↗

DOE OSTI2025

Towards robust and scalable dispatch modeling of long-duration energy storage

Not Available

Guerra, Omar J.↗

DOE OSTI2024

Effects of the U.S. inflation reduction act on SMR economics

The U.S. Inflation Reduction Act (IRA) of 2022 provides a wide array of tax credits and other incentives for low-carbon energy. The technology-neutral clean generation production tax credit (PTC) (Section 45Y of the U.S. Internal Revenue Code) and the technology-neutral investment tax credit (ITC) (Section 48E) lower the net cost of new electricity generation projects with zero or negative greenhouse gas emission rates. We evaluate the impact of the IRA legislation—specifically the PTC and ITC—on the cost-competitiveness of small modular reactors (SMRs). We use the Argonne Low-carbon Energy Analysis Framework (A-LEAF) model to calculate the capacity factor of an SMR with a range of hypothetical variable operating and maintenance (O&M) costs in the Electric Reliability Council of Texas (ERCOT) electricity market. We selected ERCOT for market modeling because of its competitive structure, available data, and extensive use in prior literature. We use a discounted cash flow model to calculate the SMR’s net present value based on the market prices and capacity factors from A-LEAF, hypothetical ranges of capital and variable O&M costs, and other input parameters, with or without the IRA tax credits. We determine the SMR owner’s optimal choice of PTC or ITC for the hypothetical ranges of capital and variable O&M costs. We also evaluate potential shifts in the SMR owner’s optimal choice of PTC or ITC based on historical patterns of nuclear capital cost overruns in the United States. We also assess the sensitivity of our results to longer PTC period and electricity prices from the New England market, which tend to be higher than electricity prices in ERCOT. We find that even with the IRA tax credits, only SMRs with low capital and variable O&M costs would be economically feasible in the low-price ERCOT market scenario modeled. A longer PTC period and higher-price market such as New England, however, would significantly expand the economic feasibility of SMRs in the United States.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2020

Wood-to-Fuel for California's Transportation Sector using Autothermal Pyrolysis (FRD-17-002 Progress Report)

Both our subcontract with ISU and the one with Frontline have been finalized and the requisitions for the initiation of them have been submitted (this places defined amounts of funding available to the subcontracts, for the first allotment of work to be done, for which we already have funds from the CEC). Once the requisitions are approved, the subcontracts will be fully executed. During the month of August, further work on the Market Report was carried out, and will continue, as this is the most adaptable of the LLNL-main tasks to working remotely, so will not have any delays due to the shelter-in-place orders. Organization of our databases and sources on availability, and potential availability of all woody biomass was continued. Tables and figures for the report were begun as well, and the outline was finalized. Additionally, a parametric study for pyrolysis’ different products was done, with a metric of return on capital investment being chosen. Evaluated parameters include feedstock price, CO2 credit price, CO2 transport cost, and minimum fuel selling price, for drop-in fuels.

09 BIOMASS FUELS↗

DOE OSTI2020

RODeO (Revenue Operation and Device Optimization Model) [SWR 20-67]

The Revenue, Operation, and Device Optimization (RODeO) model explores optimal system design and operation considering different levels of grid integration, equipment cost, operating limitations, financing, and credits and incentives. RODeO is a price-taker model formulated as a mixed-integer linear programming (MILP) model in the GAMS modeling platform. The objective is to maximizes the net revenue for a collection of equipment at a given site. The equipment includes generators (e.g., gas turbine, steam turbine, solar, wind, hydro, fuel cells, etc.), storage systems (batteries, pumped hydro, gas-fired compressed air energy storage, long-duration systems, hydrogen), and flexible loads (e.g., electric vehicles, electrolyzers, flexible building loads). The input data required by RODeO can be classified into three bins: 1) utility service data, which refers to retail utility rate information (meter cost, energy and demand charges), 2) electricity market data, which include energy and reserve prices, 3) other inputs, which refer to additional electrical demand, product output demand, technological assumptions, financial properties, and operational parameters.

Guerra Fernandez, Omar Jose↗

DOE OSTI2020

Utility-Scale Solar Data Update (2020 Edition) [Slides]

Berkeley Lab’s 2020 update of utility-scale solar data and trends provides an overview of key trends in the U.S. market, with a focus on 2019. Highlights of this year’s update include: More than 4.5 GWAC of utility-scale solar (i.e., ground-mounted solar projects larger than 5 MWAC) achieved commercial operations in 2019, bringing cumulative capacity to 29 GWAC. Projects are spread across all 10 regions that we track, though more heavily concentrated in the sunniest regions. The median installed cost of projects that came online in 2019 fell to $\$$1.4/WAC ($\$$1.2/WDC), down 20% from 2018 and down by more than 70% from 2010. 77% of projects and 88% of capacity added in 2019 used single-axis tracking. Average capacity factors range from 17% in the least-sunny regions to 30% where it is sunniest. Single-axis tracking adds roughly five percentage points to capacity factor in the regions with the strongest solar resource. Nationwide average levelized power purchase agreement (PPA) prices fell to $\$$24/MWh in 2019, down 17% from 2018 and more than 80% since 2010. Thirty-nine projects (totaling 4.2 GWAC) in our PPA price sample include battery storage (totaling 2.3 GWAC and 9.5 GWh). In the “lower 48” states, a number of these recent PV+battery PPAs have been inked in the mid-$\$$20/MWh range (levelized in 2019 dollars).Not including the 30% investment tax credit (ITC), the median levelized cost of energy (LCOE) from utility-scale PV has declined by 85% since 2010, to $\$$40/MWh in 2019. When the 30% ITC is included within the LCOE calculation, the median LCOE closely tracks the median PPA price over time. In higher-penetration markets like CAISO, the value of solar has been declining, but falling PPA prices have largely kept pace, preserving solar's net value. At the end of 2019, there were nearly 370 GW of solar in interconnection queues from all 7 ISOs and 30 additional utilities across the country. Nearly a third of this proposed solar capacity is paired with battery storage.

14 SOLAR ENERGY↗

DOE OSTI2025

Techno-Economic Analysis and Life Cycle Assessment of Alternative Fuels for Locomotives in the U.S. Freight Rail Sector

Freight rail is more energy-efficient than truck transport over long-haul distances, offering a low-energy and emissions-intensive option for transporting freight. This study evaluates techno-economic analysis and life cycle assessment of seven alternative unblended fuels for freight locomotive engines─biodiesel, renewable diesel (RD), bio-oils, methanol, dimethyl ether (DME), ethanol, and ammonia─across 16 fuel pathways utilizing soybean, corn, woody biomass, renewable hydrogen, and waste sources, e.g., sludge, manure, and industrial CO 2 , and compares these to conventional diesel. The minimum fuel selling price (MFSP) ranged from $\$2.05$ to $\$8.27$ per diesel gallon equivalent (2020 US dollars), with biocrude and RDs produced from hydrothermal liquefaction (HTL) of sludge having the lowest MFSPs due to coproduct credits and avoided waste treatment cost. Life cycle GHG emissions ranged from −41 to 53 g of CO 2 e/MJ. RD from waste via HTL achieves negative emissions by diverting sludge/manure from GHG-intensive conventional management. Few pathways such as biocrude, methanol, and DME require additional control for SO X emissions in the refinery, while ethanol, FT-diesel, and bio-oil require additional control for particulate matter emissions. Bio-oil and RD from sludge have lower marginal abatement cost or MAC (–$\$38$/tonne CO 2 lowest) while methanol and ammonia with renewable hydrogen have higher MAC ($\$490$/tonne CO 2 maximum).

29 ENERGY PLANNING, POLICY, AND ECONOMY↗