Comparative Techno-Economic Analysis of Gray Hydrogen Production Costs: A Case Study

Azam Beigi Kheradmand, Mahdi Heidari Soureshjani, Mehdi Jahangiri and Bejan Hamawandi ()
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Azam Beigi Kheradmand: Energy and Environment Research Center, Shahrekord Branch, Islamic Azad University, Shahrekord, Iran
Mahdi Heidari Soureshjani: Department of Chemical Engineering, Faculty of Technical Engineering, Shahrekord Branch, Islamic Azad University, Shahrekord, Iran
Mehdi Jahangiri: Energy and Environment Research Center, Shahrekord Branch, Islamic Azad University, Shahrekord, Iran
Bejan Hamawandi: Department of Applied Physics, KTH Royal Institute of Technology, SE-106 91 Stockholm, Sweden

Sustainability, 2025, vol. 17, issue 2, 1-19

Abstract: Despite Iran’s considerable renewable energy (RE) potential and excellent wind capacity and high solar radiation levels, these sources contribute only a small fraction of the country’s total energy production. This paper addresses the techno-economic viability of gray hydrogen production by these renewables, with a particular focus on solar energy. Given the considerable potential of solar energy and the strategic location of Shahrekord, it would be an optimal site for a hydrogen generation plant integrated with a solar field. HOMER Pro 3.18.3 software was utilized to model and optimize the levelized cost of hydrogen (LCOH) of steam reforming using different hydrocarbons in various scenarios. The results of this study indicate that natural gas (NG) reforming represents the most cost-effective method of gray hydrogen production in this city, with an LCOH of −0.423 USD/kg. Other hydrocarbons such as diesel, gasoline, propane, methanol, and ethanol have a price per kilogram of produced hydrogen as follows: USD −0.4, USD −0.293, USD 1.17, USD 1.48, and USD 2.15. In addition, integrating RE sources into hydrogen production was found to be viable. Moreover, by implementing RE technologies, CO 2 emissions can be significantly reduced, and energy security can be achieved.

Keywords: renewable energy; solar energy; gray hydrogen; fuel cell (FC) (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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