Method of supplying hydrogen through an integrated supply system

1. A method of supplying high purity hydrogen through an integrated hydrogen system comprising in fluid flow communication one or more hydrogen storage caverns, multiple hydrogen production sources, and a hydrogen pipeline distribution system capable of providing the hydrogen to a plurality of hydrogen demand points, the method comprising:

obtaining real time input data regarding at least i) one or more operating conditions of the one or more hydrogen storage caverns including a current amount of hydrogen stored in the one or more hydrogen storage caverns, an economic value of the stored hydrogen inventory and the available storage capacity, ii) one or more operating conditions for each of the multiple hydrogen production sources including an actual plant hydrogen production rate of each hydrogen plant as measured in units of standard cubic feet per hour (scfh), iii) a production cost of each of the hydrogen production sources, measured in dollars, which incorporates all variable costs to operate each of said hydrogen production sources, including natural gas costs, feedstock costs, catalyst, emission penalties, emission credits, power and water costs, and iv) one or more demand requirements of the plurality of hydrogen demand points;

comparing the input data to an optimal storage capacity and available hydrogen of the one or more hydrogen storage caverns in real time, and

adjusting at predetermined time intervals the operation of the integrated hydrogen system during demand periods such that during a low demand period any excess hydrogen can be compressed and injected into and stored within the hydrogen storage cavern and during a high demand period hydrogen can be withdrawn from the hydrogen storage cavern and introduced into the hydrogen pipeline distribution system, and

maintaining an optimal hydrogen production rate for each of the multiple hydrogen production sources during operation such that each hydrogen production source operates substantially along an optimum efficiency curve and while transitioning during the low and high demand periods above, minimizing variable cost and/or maximizing variable margin;

wherein an economic objective function is optimized by adjusting production rates based on a given demand profile.

2. The method of claim 1 wherein the method attains and then adjusts in real time to respond to a dynamic demand profile.

3. The method of claim 1 wherein the input data includes pressure readings.

4. The method of claim 1 wherein the predetermined time intervals are 30 minutes or less.

5. The method of claim 4 wherein the predetermined time intervals are 5 minutes or less.

6. The method of claim 1 wherein the input data is received in time intervals of one minute or less.

7. The method of claim 1 wherein a computerized control system is used for obtaining, comparing and then adjusting the hydrogen integrated supply system in real time.

8. The method of claim 1 wherein the cavern is safeguarded and avoids an over pressurization condition from geologically induced creep closure effects.

9. The method of claim 1 , supplying hydrogen from a salt cavern through the integrated hydrogen system to counter act the effects of abnormally high internal cavern pressure caused by geologic creep closure.

10. The method of claim 1 , further comprising eliminating flaring of hydrogen and/or cause the operation of the plants under conditions that are outside the range of their peak operating efficiency as measured by the amount of energy consumed divided by the quantity of hydrogen produced.

11. The method of claim 1 , further comprising utilizing downhole gauges to monitor a pressure at a casing shoe.

12. The method of claim 1 , further minimizing any economic penalties associated with various hydrogen feed stock purchase agreements or natural gas feed stock purchase agreements.

13. The method of claim 1 , further economically arbitraging hydrogen feed stock purchase agreements and or natural gas feed stock purchase agreements.

14. The method of claim 11 , further comprising supplying hydrogen from the cavern through the integrated hydrogen system, thereby adjusting the pressure in response to the monitored allows the plants to operate under conditions within the range of peak operating efficiency.

15. The method of claim 1 , wherein a natural gas imbalance penalty is minimized in the economic objective function.