Technoeconomic Analysis of Solar H2 Production in the Vicinity of Indian Refineries

Abstract

A technoeconomic evaluation has been conducted by the US Department of Energy, for four conceptual photoelectrochemical (PEC) H2 production systems namely, single-bed particle system, dual-bed particle system, PEC planar array system and PEC tracking solar concentrator system. The present work extends the analysis to capture solar energy in the vicinity of Indian oil refineries and generate H2 at estimated costs of 42, 84, 281 and 85 in ₹/kg H2 for the four systems, respectively. This includes the capital and operating costs involved if the PEC H2 production plant is set up around these refineries. Employing PEC H2 production systems obviate the CO2 generated by conventional processes like steam reforming, and thereby earning carbon credits. Inclusion of such credits is found to increase the annual earnings of the four conceptual systems by 0.7–8% depending on the selling price of H2. The sensitivity analysis of various economic factors like payback time, H2 price, carbon credit, efficiency of the system, etc., is performed which is useful in judging economics of the venture depending on the market variations in prices or rise in efficiency of the system or variable economic constraints of the investor.