IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v242y2022ics0360544221032527.html
   My bibliography  Save this article

A levelized cost of hydrogen (LCOH) comparison of coal-to-hydrogen with CCS and water electrolysis powered by renewable energy in China

Author

Listed:
  • Fan, Jing-Li
  • Yu, Pengwei
  • Li, Kai
  • Xu, Mao
  • Zhang, Xian

Abstract

Hydrogen has increasingly been an attractive energy in the context of carbon neutrality. The traditional coal-to-hydrogen process (C2H) is cost-effective, while has high CO2 emissions. In contrast, low-carbon hydrogen production technologies such as coal-to-hydrogen coupled CCS (C2HCCS) and renewable energy electrolysis of water for hydrogen production may be climate friendly, but of the economic feasibility needs to be evaluated. This study analyzed the production cost, cost structure and regional differences of C2H, C2HCCS, alkaline electrolysis (ALK), and proton exchange membrane electrolysis (PEM) in China via the levelized cost of hydrogen (LCOH) model. The main findings include: (1) The LCOH of the C2HCCS is 13.1–19.4RMB/kg, which is 57.6–128.3% higher than the coal-to-hydrogen process (7.2–10.1RMB/kg), and 20.5–61.0% lower than that of the hydrogen production via the water electrolysis powered by renewable energy (16.4–51.8RMB/kg). (2) The C2HCCS can be considered as a cost-effectiveness option in northwestern regions of China, especially in the provinces of Inner Mongolia, Xinjiang, and Gansu, for the future blue hydrogen energy industry. (3) Currently, hydrogen production via renewable energy-based water electrolysis has no cost advantage in most regions, but wind power-based electrolysis in Gansu and photovoltaic power-based electrolysis in Chongqing have the potential to compete with the C2HCCS process.

Suggested Citation

  • Fan, Jing-Li & Yu, Pengwei & Li, Kai & Xu, Mao & Zhang, Xian, 2022. "A levelized cost of hydrogen (LCOH) comparison of coal-to-hydrogen with CCS and water electrolysis powered by renewable energy in China," Energy, Elsevier, vol. 242(C).
    • Handle: RePEc:eee:energy:v:242:y:2022:i:c:s0360544221032527
    DOI: 10.1016/j.energy.2021.123003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544221032527
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2021.123003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. O. Schmidt & A. Hawkes & A. Gambhir & I. Staffell, 2017. "The future cost of electrical energy storage based on experience rates," Nature Energy, Nature, vol. 2(8), pages 1-8, August.
    2. Jan Christian Koj & Christina Wulf & Andrea Schreiber & Petra Zapp, 2017. "Site-Dependent Environmental Impacts of Industrial Hydrogen Production by Alkaline Water Electrolysis," Energies, MDPI, vol. 10(7), pages 1-15, June.
    3. Zixuan Luo & Yang Hu & Huachi Xu & Danhui Gao & Wenying Li, 2020. "Cost-Economic Analysis of Hydrogen for China’s Fuel Cell Transportation Field," Energies, MDPI, vol. 13(24), pages 1-14, December.
    4. Liszka, Marcin & Malik, Tomasz & Manfrida, Giampaolo, 2012. "Energy and exergy analysis of hydrogen-oriented coal gasification with CO2 capture," Energy, Elsevier, vol. 45(1), pages 142-150.
    5. Fan, Jing-Li & Wei, Shijie & Yang, Lin & Wang, Hang & Zhong, Ping & Zhang, Xian, 2019. "Comparison of the LCOE between coal-fired power plants with CCS and main low-carbon generation technologies: Evidence from China," Energy, Elsevier, vol. 176(C), pages 143-155.
    6. Wang, Yinglong & Li, Guoxuan & Liu, Zhiqiang & Cui, Peizhe & Zhu, Zhaoyou & Yang, Sheng, 2019. "Techno-economic analysis of biomass-to-hydrogen process in comparison with coal-to-hydrogen process," Energy, Elsevier, vol. 185(C), pages 1063-1075.
    7. Ludvik Viktorsson & Jukka Taneli Heinonen & Jon Bjorn Skulason & Runar Unnthorsson, 2017. "A Step towards the Hydrogen Economy—A Life Cycle Cost Analysis of A Hydrogen Refueling Station," Energies, MDPI, vol. 10(6), pages 1-15, May.
    8. Xiang, Dong & Qian, Yu & Man, Yi & Yang, Siyu, 2014. "Techno-economic analysis of the coal-to-olefins process in comparison with the oil-to-olefins process," Applied Energy, Elsevier, vol. 113(C), pages 639-647.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li, Zezheng & Yu, Pengwei & Xian, Yujiao & Fan, Jing-Li, 2024. "Investment benefit analysis of coal-to-hydrogen coupled CCS technology in China based on real option approach," Energy, Elsevier, vol. 294(C).
    2. Yu, Yadong & Guo, Ying & Ma, Tieju, 2023. "Prioritizing the hydrogen pathways for fuel cell vehicles: Analysis of the life-cycle environmental impact, economic cost, and environmental efficiency," Energy, Elsevier, vol. 281(C).
    3. Superchi, Francesco & Papi, Francesco & Mannelli, Andrea & Balduzzi, Francesco & Ferro, Francesco Maria & Bianchini, Alessandro, 2023. "Development of a reliable simulation framework for techno-economic analyses on green hydrogen production from wind farms using alkaline electrolyzers," Renewable Energy, Elsevier, vol. 207(C), pages 731-742.
    4. Zhu, Guangyan & Tian, Yajun & Liu, Min & Zhao, Yating & Wang, Wen & Wang, Minghua & Li, Quansheng & Xie, Kechang, 2023. "Comprehensive competitiveness assessment of ammonia-hydrogen fuel cell electric vehicles and their competitive routes," Energy, Elsevier, vol. 285(C).
    5. Wu, Yuan & Ofori, Elvis Kwame & Tao, Li & Lucey, Brian & Abedin, Mohammad Zoynul, 2024. "Combination of antecedent conditions affecting the development of Chinese new energy market based on fuzzy sets," Research in International Business and Finance, Elsevier, vol. 71(C).
    6. Zhang, Yongwen & Wu, Xi & Sun, Dexin & Wang, Sixue & Xu, Shiming, 2023. "Techno-economic analysis of conversing the low-grade heat to hydrogen by using reverse electrodialysis – Air gap diffusion distillation coupled method for iron and steel industry," Energy, Elsevier, vol. 283(C).
    7. Mohideen, Mohamedazeem M. & Subramanian, Balachandran & Sun, Jingyi & Ge, Jing & Guo, Han & Radhamani, Adiyodi Veettil & Ramakrishna, Seeram & Liu, Yong, 2023. "Techno-economic analysis of different shades of renewable and non-renewable energy-based hydrogen for fuel cell electric vehicles," Renewable and Sustainable Energy Reviews, Elsevier, vol. 174(C).
    8. Huo, Qunhai & Liu, Qiran & Deng, Huawei & Wang, Wenyong & Shi, Changli & Wei, Tongzhen, 2024. "Research on dual-layer optimization strategy of photovoltaic-storage-hydrogen system in coal chemical industry park," Renewable Energy, Elsevier, vol. 230(C).
    9. Zhou, Zhou & Cai, Guotian & Huang, Yuping & Bai, Ruxue & Nie, Shuai & Chen, Xiaoyu, 2024. "Spatial and temporal evolution of cost-competitive offshore hydrogen in China: A techno-economic analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 203(C).
    10. Brenda H. M. Silveira & Hirdan K. M. Costa & Edmilson M. Santos, 2023. "Bioenergy with Carbon Capture and Storage (BECCS) in Brazil: A Review," Energies, MDPI, vol. 16(4), pages 1-18, February.
    11. Chen, Maozhi & Lu, Hao & Chang, Xiqiang & Liao, Haiyan, 2023. "An optimization on an integrated energy system of combined heat and power, carbon capture system and power to gas by considering flexible load," Energy, Elsevier, vol. 273(C).
    12. Du, Zhengyang & Dai, Zhenxue & Yang, Zhijie & Zhan, Chuanjun & Chen, Wei & Cao, Mingxu & Thanh, Hung Vo & Soltanian, Mohamad Reza, 2024. "Exploring hydrogen geologic storage in China for future energy: Opportunities and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 196(C).
    13. Kourougianni, Fanourios & Arsalis, Alexandros & Olympios, Andreas V. & Yiasoumas, Georgios & Konstantinou, Charalampos & Papanastasiou, Panos & Georghiou, George E., 2024. "A comprehensive review of green hydrogen energy systems," Renewable Energy, Elsevier, vol. 231(C).
    14. Cormos, Calin-Cristian, 2023. "Green hydrogen production from decarbonized biomass gasification: An integrated techno-economic and environmental analysis," Energy, Elsevier, vol. 270(C).
    15. Hosseini Dehshiri, Seyyed Shahabaddin & Firoozabadi, Bahar, 2022. "A new application of measurement of alternatives and ranking according to compromise solution (MARCOS) in solar site location for electricity and hydrogen production: A case study in the southern clim," Energy, Elsevier, vol. 261(PB).
    16. Konstantin Gomonov & Marina Reshetnikova & Svetlana Ratner, 2023. "Economic Analysis of Recently Announced Green Hydrogen Projects in Russia: A Multiple Case Study," Energies, MDPI, vol. 16(10), pages 1-15, May.
    17. Li, Qingshan & Wang, Chenfang & Wang, Chunmei & Zhou, Taotao & Zhang, Xianwen & Zhang, Yangjun & Zhuge, Weilin & Sun, Li, 2023. "Comparison of organic coolants for boiling cooling of proton exchange membrane fuel cell," Energy, Elsevier, vol. 266(C).
    18. Wu, Tianyi & Wang, Junfeng & Zhang, Wei & Zuo, Lei & Xu, Haojie & Li, Bin, 2023. "Plasma bubble characteristics and hydrogen production performance of methanol decomposition by liquid phase discharge," Energy, Elsevier, vol. 273(C).
    19. Roberta Caponi & Enrico Bocci & Luca Del Zotto, 2022. "Techno-Economic Model for Scaling Up of Hydrogen Refueling Stations," Energies, MDPI, vol. 15(20), pages 1-16, October.
    20. Abdollahipour, Armin & Sayyaadi, Hoseyn, 2022. "Optimal design of a hybrid power generation system based on integrating PEM fuel cell and PEM electrolyzer as a moderator for micro-renewable energy systems," Energy, Elsevier, vol. 260(C).
    21. Shuai Nie & Guotian Cai & Yixuan Li & Yushu Chen & Ruxue Bai & Liping Gao & Xiaoyu Chen, 2022. "To Adopt CCU Technology or Not? An Evolutionary Game between Local Governments and Coal-Fired Power Plants," Sustainability, MDPI, vol. 14(8), pages 1-18, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pastore, Lorenzo Mario & Lo Basso, Gianluigi & Sforzini, Matteo & de Santoli, Livio, 2022. "Technical, economic and environmental issues related to electrolysers capacity targets according to the Italian Hydrogen Strategy: A critical analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 166(C).
    2. Liu, Huan & Guo, Wei & Liu, Shuqin, 2022. "Comparative techno-economic performance analysis of underground coal gasification and surface coal gasification based coal-to-hydrogen process," Energy, Elsevier, vol. 258(C).
    3. Franziska Hönig & Ganesh Deepak Rupakula & Diana Duque-Gonzalez & Matthias Ebert & Ulrich Blum, 2023. "Enhancing the Levelized Cost of Hydrogen with the Usage of the Byproduct Oxygen in a Wastewater Treatment Plant," Energies, MDPI, vol. 16(12), pages 1-23, June.
    4. Orlando Corigliano & Leonardo Pagnotta & Petronilla Fragiacomo, 2022. "On the Technology of Solid Oxide Fuel Cell (SOFC) Energy Systems for Stationary Power Generation: A Review," Sustainability, MDPI, vol. 14(22), pages 1-73, November.
    5. Huo, Hailong & Liu, Xunliang & Wen, Zhi & Lou, Guofeng & Dou, Ruifeng & Su, Fuyong & Zhou, Wenning & Jiang, Zeyi, 2021. "Case study of a novel low rank coal to calcium carbide process based on techno-economic assessment," Energy, Elsevier, vol. 228(C).
    6. Oyewo, Ayobami Solomon & Solomon, A.A. & Bogdanov, Dmitrii & Aghahosseini, Arman & Mensah, Theophilus Nii Odai & Ram, Manish & Breyer, Christian, 2021. "Just transition towards defossilised energy systems for developing economies: A case study of Ethiopia," Renewable Energy, Elsevier, vol. 176(C), pages 346-365.
    7. Lane, Blake & Kinnon, Michael Mac & Shaffer, Brendan & Samuelsen, Scott, 2022. "Deployment planning tool for environmentally sensitive heavy-duty vehicles and fueling infrastructure," Energy Policy, Elsevier, vol. 171(C).
    8. Dugoua, Eugenie & Dumas, Marion, 2024. "Coordination dynamics between fuel cell and battery technologies in the transition to clean cars," LSE Research Online Documents on Economics 124029, London School of Economics and Political Science, LSE Library.
    9. Seck, Gondia Sokhna & Hache, Emmanuel & D'Herbemont, Vincent & Guyot, Mathis & Malbec, Louis-Marie, 2023. "Hydrogen development in Europe: Estimating material consumption in net zero emissions scenarios," International Economics, Elsevier, vol. 176(C).
    10. Ushnik Mukherjee & Azadeh Maroufmashat & Apurva Narayan & Ali Elkamel & Michael Fowler, 2017. "A Stochastic Programming Approach for the Planning and Operation of a Power to Gas Energy Hub with Multiple Energy Recovery Pathways," Energies, MDPI, vol. 10(7), pages 1-27, June.
    11. Caldera, Upeksha & Breyer, Christian, 2020. "Strengthening the global water supply through a decarbonised global desalination sector and improved irrigation systems," Energy, Elsevier, vol. 200(C).
    12. Serguey A. Maximov & Gareth P. Harrison & Daniel Friedrich, 2019. "Long Term Impact of Grid Level Energy Storage on Renewable Energy Penetration and Emissions in the Chilean Electric System," Energies, MDPI, vol. 12(6), pages 1-19, March.
    13. Tubagus Aryandi Gunawan & Alessandro Singlitico & Paul Blount & James Burchill & James G. Carton & Rory F. D. Monaghan, 2020. "At What Cost Can Renewable Hydrogen Offset Fossil Fuel Use in Ireland’s Gas Network?," Energies, MDPI, vol. 13(7), pages 1-23, April.
    14. Mengzhu Xiao & Manuel Wetzel & Thomas Pregger & Sonja Simon & Yvonne Scholz, 2020. "Modeling the Supply of Renewable Electricity to Metropolitan Regions in China," Energies, MDPI, vol. 13(12), pages 1-31, June.
    15. Xiang, Dong & Xiang, Junjie & Sun, Zhe & Cao, Yan, 2017. "The integrated coke-oven gas and pulverized coke gasification for methanol production with highly efficient hydrogen utilization," Energy, Elsevier, vol. 140(P1), pages 78-91.
    16. Helm, Carsten & Mier, Mathias, 2021. "Steering the energy transition in a world of intermittent electricity supply: Optimal subsidies and taxes for renewables and storage," Journal of Environmental Economics and Management, Elsevier, vol. 109(C).
    17. Christian Breyer & Mahdi Fasihi & Arman Aghahosseini, 2020. "Carbon dioxide direct air capture for effective climate change mitigation based on renewable electricity: a new type of energy system sector coupling," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 25(1), pages 43-65, January.
    18. Farah, Sleiman & Andresen, Gorm Bruun, 2024. "Investment-based optimisation of energy storage design parameters in a grid-connected hybrid renewable energy system," Applied Energy, Elsevier, vol. 355(C).
    19. Sara Bellocchi & Michele Manno & Michel Noussan & Michela Vellini, 2019. "Impact of Grid-Scale Electricity Storage and Electric Vehicles on Renewable Energy Penetration: A Case Study for Italy," Energies, MDPI, vol. 12(7), pages 1-32, April.
    20. Xiang, Yue & Wu, Gang & Shen, Xiaodong & Ma, Yuhang & Gou, Jing & Xu, Weiting & Liu, Junyong, 2021. "Low-carbon economic dispatch of electricity-gas systems," Energy, Elsevier, vol. 226(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:242:y:2022:i:c:s0360544221032527. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.