Can Green Hydrogen Production Be Economically Viable under Current Market Conditions

David Jure Jovan and Gregor Dolanc
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David Jure Jovan: Department of Systems and Control, Jožef Stefan Institute, Jamova cesta 39, 1000 Ljubljana, Slovenia
Gregor Dolanc: Department of Systems and Control, Jožef Stefan Institute, Jamova cesta 39, 1000 Ljubljana, Slovenia

Energies, 2020, vol. 13, issue 24, 1-16

Abstract: This paper discusses the potential of green hydrogen production in a case study of a Slovenian hydro power plant. To assess the feasibility and eligibility of hydrogen production at the power plant, we present an overview of current hydrogen prices and the costs of the power-to-gas system for green hydrogen production. After defining the production cost for hydrogen at the case study hydro power plant, we elaborate on the profitability of hydrogen production over electricity. As hydrogen can be used as a sustainable energy vector in industry, heating, mobility, and the electro energetic sectors, we discuss the current competitiveness of hydrogen in the heating and transport sectors. Considering the current prices of different fuels, it is shown that hydrogen can be competitive in the transport sector if it is unencumbered by various environmental taxes. The second part of the paper deals with hydrogen production in the context of secondary control ancillary service provided by a case study power plant. Namely, hydrogen can be produced during the time period when there is no demand for extra electric power within a secondary control ancillary service, and thus the economics of power plant operation can be improved.

Keywords: renewable energies; green hydrogen production; hydro power plant; power-to-gas systems; ancillary services (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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