Abstract
The need to develop a forthcoming hydrogen economy emphasises the emerging concept of ‘hydrogen valleys', where hydrogen production and consumption are being developed. This study assesses the Levelized Cost of Hydrogen (LCOH) and Carbon Abatement Cost (CAC) for various hydrogen end-use applications within the context of a hydrogen valley located in the southern Italy over different time horizons (Today 2023, Mid-Term 2030, Long-Term 2050). Examined applications include blending into the gas grid, reconversion into electricity for grid balancing by means of fuel cells, hydrogen refuelling stations for fuel cell electric vehicles (FCEVs), synthetic methane production, and electro-fuel synthesis. Employing a parametric approach, the study compares LCOH and decarbonisation costs across different pathways. Results indicate current LCOH production values of 3.66–4.90 €/kgH2, projected to decrease to 1.41–1.94 €/kgH2 by 2050. Decarbonisation cost analysis identifies blending and FCEV scenarios as the most cost-effective, contrasting with Power-to-Power scenarios, particularly in the mid and long terms.
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