Earlier quoted context omitted.
> Elaborate on what you mean by emphasizing retail energy costs. That is the cost that customers pay for the electricity that is delivered to them. It's what a residential customer would pay. It's not what an industrial customer would pay, and it's certainly not the internal cost the utility to pay for their own production of hydrogen. In particular, it includes the cost of supporting the distribution network. None o…
You seem to be under the impression that the cost of hydrogen storage comes almost exclusively from the cost of electricity used for electrolysis of water. This is not the case. Even if we assume zero electricity costs, th cost of storing hydrogen amounts to over a thousand dollars per KWh. Current estimates place this at $1,400 per KWh per year for the average case assuming that the electricity provided is free [1].…
Nowhere did I say or imply that. My argument is actually the complete opposite.
What hydrogen does is get a much lower cost per unit of energy storage capacity, at the cost of lower efficiency . The cost per energy capacity of batteries is two orders of magnitude higher than for hydrogen storage. So, hydrogen exploits that for long term storage, it's ok to waste more input energy, if you can get the capital cost down.
> Us retail energy costs are about $.13/KWh. Industrial costs are $.07/KWh.
The correct figure to look at is wholesale price, which is often below $.03/kWh in US power markets, and lower at off peak times when one would make hydrogen.
https://www.eia.gov/todayinenergy/detail.php?id=42456
> For diurnal storage, hydrogen energy storage
I explicitly wasn't talking about diurnal storage. That's not the use case for hydrogen. The use case is long term storage.
> And for non-diurnal storage the costs are even higher per KWh because a smaller amount of delivered electricity needs to pay off the same amount of capacity cost.
Hydrogen has a huge advantage in long term storage, because the per-energy capacity cost is so damned low, compared to batteries. Yes, the cost per kWh stored in long term storage is higher than the cost per kWh in short term storage. But they are different use cases and one cannot be substituted for the other.
If you optimize the problem of providing a steady output from renewables over the days and years, you will find in most places that a mix of short term and long term storage is optimal. Neither substitutes for the other.