Hydrogen production issue

Methanol-based hydrogen production requires less space and is easier to approve for, but the cost of hydrogen is high and subject to significant fluctuations in methanol prices. Natural gas-based hydrogen production is highly constrained by raw material availability, making it suitable for locations with abundant natural gas resources, where the cost of hydrogen is relatively low.

Simply put, it can be considered from two main aspects. First, in terms of investment, the natural gas-based hydrogen production process is more complex and requires more equipment, which results in higher investment costs – roughly twice that of methanol-based hydrogen production. Secondly, in terms of operating costs, the cost of producing hydrogen from natural gas remains relatively stable, whereas the cost of producing hydrogen from methanol is highly affected by market fluctuations; the price of methanol can be less than 2,000 yuan per ton at low levels, and rise to around 5,000 yuan per ton at high levels. Most of the time, the cost of producing hydrogen from methanol is relatively high. Additionally, natural gas-based hydrogen production is also influenced by regional factors; in areas where there are no natural gas resources, methanol-based hydrogen production becomes the only option. That’s basically all. I have been working on these two hydrogen production methods for over a decade; if there is anything else you’d like to discuss, you can add me on WeChat at 79498990 to talk further

In short: Hydrogen production from methanol requires low investment and minimal space; its costs fluctuate depending on methanol prices. The startup, shutdown, and daily operation of such systems are simple, but heat transfer oil boilers and methanol storage tanks are needed (which I consider to be a source of risk). Additionally, the transportation and unloading of methanol also pose risks； Hydrogen production from natural gas requires high investment and large land area; its cost is slightly lower than that of methanol (depending on methanol prices). Both the raw materials and the product are transported via pipelines, eliminating the risk associated with unloading (which I consider very important, as several accidents in recent years have been related to unloading processes). The startup and shutdown times are long (30 hours), and emergency procedures are more complicated compared to those in methanol cracking units.