A method to map the levelised cost of hydrogen from offshore wind farms coupled to onshore electrolysers via HVDC

Abstract

Green hydrogen generated by electrolysis from offshore wind energy can contribute to energy security and decarbonisation by substituting fossil natural gas. The levelised cost of hydrogen (LCOH) is a commonly used metric to evaluate a project’s economic potential. In the near term, one of the potential configurations to produce hydrogen is an offshore wind farm connected to a dedicated onshore electrolyser by a high-voltage direct current (HVDC) transmission system. This study integrates a detailed, location-specific cost model with geospatial tools to create a map of LCOH generated from such plants. A case study that uses the model to map LCOH based on a 540 MW offshore wind farm in Irish waters coupled with onshore electrolysers is also presented. The transmission expenditure ranges from €500 to €800 million, depending on the offshore wind farm location. The obtained LCOH map shows that LCOH values based on wind energy from the offshore area of Ireland are mainly in the range of 5–6 €/kg. Although the locations with the lowest project capital expenditure are near the coasts, some areas with the lowest LCOH are further offshore and in deeper waters due to the superior wind resources in these areas.