Techno-Economic Analysis of Grid-Connected Hydrogen Production via Water Electrolysis

Pengcheng Zhu (), Masahiro Mae and Ryuji Matsuhashi
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Pengcheng Zhu: Department of Electrical Engineering and Information Systems, The University of Tokyo, Tokyo 113-8656, Japan
Masahiro Mae: Department of Electrical Engineering and Information Systems, The University of Tokyo, Tokyo 113-8656, Japan
Ryuji Matsuhashi: Department of Electrical Engineering and Information Systems, The University of Tokyo, Tokyo 113-8656, Japan

Energies, 2024, vol. 17, issue 7, 1-16

Abstract: As the global energy landscape transitions towards a more sustainable future, hydrogen has emerged as a promising energy carrier due to its potential to decarbonize various sectors. However, the economic competitiveness of hydrogen production by water electrolysis strongly depends on renewable energy source (RES) availability. Thus, it is necessary to overcome the challenges related to the intermittent nature of RESs. This paper presents a comprehensive techno-economic analysis of complementing green hydrogen production with grid electricity. An evaluation model for the levelized cost of hydrogen (LCOH) is proposed, considering both CO 2 emissions and the influence of RES fluctuations on electrolyzers. A minimum load restriction is required to avoid crossover gas. Moreover, a new operation strategy is developed for hydrogen production plants to determine optimal bidding in the grid electricity market to minimize the LCOH. We evaluate the feasibility of the proposed approach with a case study based on data from the Kyushu area in Japan. The results show that the proposed method can reduce the LCOH by 11% to 33%, and increase hydrogen productivity by 86% to 140%, without significantly increasing CO 2 emission levels.

Keywords: hydrogen production; water electrolysis; renewable energy; operation strategy; CO 2 emission; levelized cost of hydrogen (LCOH) (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
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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