Comprehensive life cycle cost analysis of ammonia-based hydrogen transportation scenarios for offshore wind energy utilization

Abstract

As the importance of achieving carbon neutrality continues to grow, green hydrogen energy has emerged as a promising solution as a clean and sustainable energy source. One of the environmentally friendly methods of producing hydrogen is through offshore wind energy, which generates no pollutants during the process. While there have been economic analyses conducted on this production process, the subsequent life cycle study of hydrogen transport scenarios is often overlooked. To bridge this gap, this study focuses on conducting a comprehensive life cycle cost analysis of two hydrogen transport scenarios that utilize ammonia as the carrier. The analysis encompasses various aspects, including life cycle cost analysis, net present value, and the calculation of the levelized cost of hydrogen. Comprehensive sensitivity analysis is performed, considering indicators such as boil-off gas leakage rate and annual transportation mass. Furthermore, this study analyzes the operational risk rate and payback period of the two transportation scenarios. The findings reveal that for transportation distances within 100 km, the life cycle construction cost for the pipeline transport scenario amounts to 761 M$, whereas for ship transportation, it is 201 M$. The annual transport mass for the pipeline is estimated to be 12,000 metric tons, while for the ship, it is 8600 metric tons. The levelized cost of hydrogen is calculated to be 14.62 $/kg for pipeline transportation and 15.54 $/kg for ship transportation. Notably, the annual transport mass emerges as a significant factor impacting the levelized cost of hydrogen in both scenarios. Furthermore, by achieving an annual transport mass of 18,000 metric tons, the levelized cost of hydrogen can be reduced to 10.42 $/kg when the transportation distance extends to 450 km. This highlights the importance of considering the annual transport mass to optimize the cost-efficiency of hydrogen transportation.