Economic Feasibility of Hydrogen Generation Using HTR-PM Technology in Saudi Arabia

Saud A. Al-Shikh (), Essam A. Al-Ammar and Abdullah S. Alomari
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Saud A. Al-Shikh: MS in Nuclear Engineering Program, College of Engineering, King Saud University, Riyadh 11421, Saudi Arabia
Essam A. Al-Ammar: MS in Nuclear Engineering Program, College of Engineering, King Saud University, Riyadh 11421, Saudi Arabia
Abdullah S. Alomari: Nuclear Technologies Institute, King Abdulaziz City for Science and Technology (KACST), P.O. Box 6086, Riyadh 11442, Saudi Arabia

Sustainability, 2025, vol. 17, issue 4, 1-19

Abstract: The global push for clean hydrogen production has identified nuclear energy, particularly high-temperature gas-cooled reactors (HTGRs), as a promising solution due to their ability to provide high-temperature heat. This study conducted a techno-economic analysis of hydrogen production in Saudi Arabia using the pebble bed modular reactor (HTR-PM), focusing on two methods: high-temperature steam electrolysis (HTSE) and the sulfur–iodine (SI) thermochemical cycle. The Hydrogen Economic Evaluation Program (HEEP) was used to assess the economic viability of both methods, considering key production factors such as the discount rate, nuclear power plant (NPP) capital cost, and hydrogen plant efficiency. The results show that the SI cycle achieves a lower levelized cost of hydrogen (LCOH) at USD 1.22/kg H 2 compared to HTSE at USD 1.47/kg H 2 , primarily due to higher thermal efficiency. Nonetheless, HTSE offers simpler system integration. Sensitivity analysis reveals that variations in the discount rate and NPP capital costs significantly impact both production methods, while hydrogen plant efficiency is crucial in determining overall economics. The findings contribute to the broader discourse on sustainable hydrogen production technologies by highlighting the potential of nuclear-driven methods to meet global decarbonization goals. The paper concludes that the HTR-PM offers a viable pathway for large-scale hydrogen production in Saudi Arabia, aligning with the Vision 2030 objectives.

Keywords: hydrogen production sustainability; pebble bed modular reactor (PBMR); high-temperature gas-cooled reactor (HTGR); high-temperature steam electrolysis (HTSE); sulfur–iodine (SI) thermochemical cycle; techno-economic analysis; levelized cost of hydrogen (LCOH) (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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