{"title":"The cost of green: Analyzing the economic feasibility of hydrogen production from offshore wind power","authors":"","doi":"10.1016/j.ecmx.2024.100770","DOIUrl":null,"url":null,"abstract":"<div><div>Wind energy is a cornerstone for enhancing grid stability and augmenting energy storage solutions, especially through its synergy with green hydrogen production. While substantial research has analyzed the economic dynamics of offshore wind and green hydrogen, the impact of offshore distances on hydrogen production costs remains underexplored. This study introduces a novel, globally applicable modeling framework for the Levelized Cost of Hydrogen (LCOH), illustrated using the strategically significant Taiwan Strait as a case study. By employing net present value analysis, we compare centralized, distributed, and onshore hydrogen production scenarios, documenting the lowest current LCOH values at $10.27, $10.31, and $11.32 per kg of hydrogen respectively. These findings highlight the cost-effectiveness of the centralized configuration and emphasize the significant costs linked to transmission infrastructure in onshore setups. Looking ahead to 2035, our framework predicts substantial reductions in LCOH, with low-cost scenarios forecasting profitability at just $9 per kilogram of hydrogen. Powered by the universally accessible ERA5 reanalysis dataset, our approach supports analogous assessments worldwide, thereby aiding strategic planning and the deployment of renewable technologies. In-depth sensitivity and Monte Carlo analyses further enhance our understanding of the impacts of offshore distance and other key factors, bolstering the economic evaluation of green hydrogen production. This comprehensive methodology not only assesses present capabilities but also facilitates broad application, fostering the strategic development of renewable technologies globally.</div></div>","PeriodicalId":37131,"journal":{"name":"Energy Conversion and Management-X","volume":null,"pages":null},"PeriodicalIF":7.1000,"publicationDate":"2024-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Energy Conversion and Management-X","FirstCategoryId":"1085","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S2590174524002484","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ENERGY & FUELS","Score":null,"Total":0}
引用次数: 0
Abstract
Wind energy is a cornerstone for enhancing grid stability and augmenting energy storage solutions, especially through its synergy with green hydrogen production. While substantial research has analyzed the economic dynamics of offshore wind and green hydrogen, the impact of offshore distances on hydrogen production costs remains underexplored. This study introduces a novel, globally applicable modeling framework for the Levelized Cost of Hydrogen (LCOH), illustrated using the strategically significant Taiwan Strait as a case study. By employing net present value analysis, we compare centralized, distributed, and onshore hydrogen production scenarios, documenting the lowest current LCOH values at $10.27, $10.31, and $11.32 per kg of hydrogen respectively. These findings highlight the cost-effectiveness of the centralized configuration and emphasize the significant costs linked to transmission infrastructure in onshore setups. Looking ahead to 2035, our framework predicts substantial reductions in LCOH, with low-cost scenarios forecasting profitability at just $9 per kilogram of hydrogen. Powered by the universally accessible ERA5 reanalysis dataset, our approach supports analogous assessments worldwide, thereby aiding strategic planning and the deployment of renewable technologies. In-depth sensitivity and Monte Carlo analyses further enhance our understanding of the impacts of offshore distance and other key factors, bolstering the economic evaluation of green hydrogen production. This comprehensive methodology not only assesses present capabilities but also facilitates broad application, fostering the strategic development of renewable technologies globally.
期刊介绍:
Energy Conversion and Management: X is the open access extension of the reputable journal Energy Conversion and Management, serving as a platform for interdisciplinary research on a wide array of critical energy subjects. The journal is dedicated to publishing original contributions and in-depth technical review articles that present groundbreaking research on topics spanning energy generation, utilization, conversion, storage, transmission, conservation, management, and sustainability.
The scope of Energy Conversion and Management: X encompasses various forms of energy, including mechanical, thermal, nuclear, chemical, electromagnetic, magnetic, and electric energy. It addresses all known energy resources, highlighting both conventional sources like fossil fuels and nuclear power, as well as renewable resources such as solar, biomass, hydro, wind, geothermal, and ocean energy.