Cost of Green Hydrogen

Janusz Kotowicz, Oliwia Baszczeńska () and Kamil Niesporek
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Janusz Kotowicz: Department of Power Engineering and Turbomachinery, Faculty of Energy and Environmental Engineering, Silesian University of Technology, 44-100 Gliwice, Poland
Oliwia Baszczeńska: Department of Power Engineering and Turbomachinery, Faculty of Energy and Environmental Engineering, Silesian University of Technology, 44-100 Gliwice, Poland
Kamil Niesporek: Department of Power Engineering and Turbomachinery, Faculty of Energy and Environmental Engineering, Silesian University of Technology, 44-100 Gliwice, Poland

Energies, 2024, vol. 17, issue 18, 1-18

Abstract: Acting in accordance with the requirements of the 2015 Paris Agreement, Poland, as well as other European Union countries, have committed to achieving climate neutrality by 2050. One of the solutions to reduce emissions of harmful substances into the environment is the implementation of large-scale hydrogen technologies. This article presents the cost of producing green hydrogen produced using an alkaline electrolyzer, with electricity supplied from a photovoltaic farm. The analysis was performed using the Monte Carlo method, and for baseline assumptions including an electricity price of 0.053 EUR/kWh, the cost of producing green hydrogen was 5.321 EUR/kgH 2 . In addition, this article presents a sensitivity analysis showing the impact of the electricity price before and after the energy crisis and other variables on the cost of green hydrogen production. The large change occurring in electricity prices (from 0.035 EUR/kWh to 0.24 EUR/kWh) significantly affected the levelized cost of green hydrogen (LCOH), which could change by up to 14 EUR/kgH 2 in recent years. The results of the analysis showed that the parameters that successively have the greatest impact on the cost of green hydrogen production are the operating time of the plant and the unit capital expenditure. The development of green hydrogen production facilities, along with the scaling of technology in the future, can reduce the cost of its production.

Keywords: LCOH; green hydrogen; electrolysis; Monte Carlo (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: 2024
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