Developing a Forest Biomass–to–Hydrogen Bioeconomy in San Bernardino County :
California Wood Products Innovation Campus Strategy for Clean Energy and Regional Growth
Developing a Forest Biomass–to–Hydrogen Bioeconomy in San Bernardino County :
California Wood Products Innovation Campus Strategy for Clean Energy and Regional Growth
The analysis shows that forest biomass—often treated as low-value waste or hazardous wildfire fuel—can be converted into a high-value, low-carbon energy carrier at competitive cost. A commercial-scale facility processing 1,000 BDT per day achieves a levelized cost of hydrogen (LCOH) of $3.52 per kg, generates strong operating margins, and delivers attractive investor returns (IRR = 12%) under conservative assumptions. Sensitivity and scenario analyses indicate that hydrogen sale price and capital expenditure are the dominant drivers of economic performance, while feedstock price, operating costs, and transport distance exert comparatively smaller impacts. Notably, repurposing idle biomass facilities, such as Desert View Power, can reduce capital costs by ~40%, lowering LCOH to $2.80 per kg, increasing IRR to 26%, and shortening payback periods to 2.57 years, highlighting a strategic pathway for cost-efficient deployment.
Beyond private returns, the societal and environmental benefits are substantial. Forest-residue diversion reduces wildfire emissions by an estimated 466,695 tCO₂e annually and mitigates 4,383 t PM₂.₅ per year, translating to monetized climate and health benefits of $68–188 million per year (EPA framework) and $10–47 million per year (IWG framework). Health co-benefits accrue disproportionately to overburdened inland air basins, including the Mojave Desert, where incident-level analysis indicates ~27,702 avoided morbidity and mortality cases per year, corresponding to $1.23 billion per year in localized health gains. These results underscore the potential of forest-residue hydrogen as a potentially carbon-negative energy pathway that simultaneously advances environmental justice, air-quality improvement, and public-health protection.