H2 costs are incorrectly calculated

[robbieorvis]

H2 costs, particularly for electrolytic H2, are not calculated correctly when allowing the model to adjust prices based on production costs. We either need to have H2 costs fully endogenized or move to a new system. In addition to the current issues, the H2 sector also uses industrial rates for electricity for H2, but facilities are contemplating contracting directly with wholesale providers, often onsite, and their electricity purchase costs would therefore be MUCH lower than the retail rate. For now we have disabled the model's adjustment of prices based on production costs. Needs to be wholly revisited in the future.

[dobrien13]

When we get to this, it'd be worth exploring how to pass changes in H2 production costs through to consumers (like we do with electricity). Presently, adding a carbon tax on fuels (NG) being consumed to make H2 does not increase the cost of H2 consumed in industry.