Techno-Economic Assessment of a Full-Chain Hydrogen Production by Offshore Wind Power

Offshore wind power stands out as a promising renewable energy source, offering substantial potential for achieving low carbon emissions and enhancing energy security. Despite its potential, the expansion of offshore wind power faces considerable constraints in offshore power transmission. Hydrogen production derived from offshore wind power emerges as an efficient solution to overcome these limitations and effectively transport energy. This study systematically devises diverse hydrogen energy supply chains tailored to the demands of the transportation and chemical industries, meticulously assessing the levelized cost of hydrogen (LCOH). Our findings reveal that the most cost-efficient means of transporting hydrogen to the mainland is through pipelines, particularly when the baseline distance is 50 km and the baseline electricity price is 0.05 USD/kWh. Notably, delivering hydrogen directly to the port via pipelines for chemical industries proves considerably more economical than distributing it to hydrogen refueling stations, with a minimal cost of 3.6 USD/kg. Additionally, we assessed the levelized cost of hydrogen (LCOH) for supply chains that transmit electricity to ports via submarine cables before hydrogen production and subsequent distribution to chemical plants. In comparison to offshore hydrogen production routes, these routes exhibit higher costs and reduced competitiveness. Finally, a sensitivity analysis was undertaken to scrutinize the impact of delivery distance and electricity prices on LCOH. The outcomes underscore the acute sensitivity of LCOH to power prices, highlighting the potential for substantial reductions in hydrogen prices through concerted efforts to lower electricity costs.