Chapter 5 - Techno-economic prospects of green hydrogen production

Abstract

This study presents a systematic technique for designing, estimating a balance of plants, and scaling up green hydrogen production plants to the gigawatt level. Two key inputs required to produce green hydrogen are water and renewable electricity. Green hydrogen is a significant source that can meet the urgent need for energy and facilitate the transition to clean energy. Production of green hydrogen from water electrolysis using renewable energy is an effective technology for capturing and storing renewable energy, as well as for frequency regulation and load shifting. Integrating renewable energy integration is a smart strategy to supply stable power to the electrolyzer. The energy supply from a wind turbine configuration provides greater stability than from a solar photovoltaic array configuration. Directly coupling renewable the energy source with the electrolyzer is significant for avoiding system loss and increasing production efficiency. Colocating the integrated renewable energy sources (solar and wind) and electrolyzer configuration cuts down the cost of hydrogen production. Operating parameters of the proton exchange electrolyzer, such as cell structure, pressure, and temperature, are key factors for making it cost-effective and resizing it for the GW-scale production plant. The annual hydrogen production of the plant is 38,76,300kg with an net present value of over US $849.46 million and levelized cost of hydrogen of $2.62/kg H2. Analysis using the discounted rate method demonstrated that the economic indicators of the internal return rate (8%) and benefit and cost ratio (1.15) strongly support the strategic technology of the study and the prospect of green hydrogen production. The studied technological approach and financial analysis provide a way forward for the future development of a green hydrogen production process plant.