Co-production of electricity and hydrogen from wind: A comprehensive scenario-based techno-economic analysis

Abstract

The aim of this study is to investigate the economic prospects of producing electricity and hydrogen using wind energy under different scenarios. For this, the most essential criteria to investors including Levelized Cost of Wind-generated Electricity (LCOWE), Levelized Cost of Wind-based Hydrogen (LCOWH), payback period, and rate of return are examined. Technical and environmental impacts are factored into the LCOWE formulation to obtain comprehensive insight. Owing to the uncertain nature of future, five degradation rates concerned with wind turbine performance and five likely rates as to the future value of money are investigated under the scenarios of I) utilizing wind electricity to replace fuel oil electricity, II) to replace natural gas electricity and III) without considering environmental penalties. The results indicate that LCOWE would be in the range of 0.0325–0.0755 $/kWh, while the corresponding LCOWH being in the range of 1.375–1.59 $/kg. Moreover, payback period of the related LCOWE and LCOWH would be in the range of 2.55–9.48 yr during the lifetime of wind power plant and 3.91–8.41 yr during that of hydrogen production system, respectively. The corresponding rate of return pertinent to the above-mentioned ones would be respectively in the range of 14.15–23.54% and of 9.87–21.55%.