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Cost of Green Hydrogen

Author

Listed:
  • Janusz Kotowicz

    (Department of Power Engineering and Turbomachinery, Faculty of Energy and Environmental Engineering, Silesian University of Technology, 44-100 Gliwice, Poland)

  • Oliwia Baszczeńska

    (Department of Power Engineering and Turbomachinery, Faculty of Energy and Environmental Engineering, Silesian University of Technology, 44-100 Gliwice, Poland)

  • Kamil Niesporek

    (Department of Power Engineering and Turbomachinery, Faculty of Energy and Environmental Engineering, Silesian University of Technology, 44-100 Gliwice, Poland)

Abstract

Acting in accordance with the requirements of the 2015 Paris Agreement, Poland, as well as other European Union countries, have committed to achieving climate neutrality by 2050. One of the solutions to reduce emissions of harmful substances into the environment is the implementation of large-scale hydrogen technologies. This article presents the cost of producing green hydrogen produced using an alkaline electrolyzer, with electricity supplied from a photovoltaic farm. The analysis was performed using the Monte Carlo method, and for baseline assumptions including an electricity price of 0.053 EUR/kWh, the cost of producing green hydrogen was 5.321 EUR/kgH 2 . In addition, this article presents a sensitivity analysis showing the impact of the electricity price before and after the energy crisis and other variables on the cost of green hydrogen production. The large change occurring in electricity prices (from 0.035 EUR/kWh to 0.24 EUR/kWh) significantly affected the levelized cost of green hydrogen (LCOH), which could change by up to 14 EUR/kgH 2 in recent years. The results of the analysis showed that the parameters that successively have the greatest impact on the cost of green hydrogen production are the operating time of the plant and the unit capital expenditure. The development of green hydrogen production facilities, along with the scaling of technology in the future, can reduce the cost of its production.

Suggested Citation

  • Janusz Kotowicz & Oliwia Baszczeńska & Kamil Niesporek, 2024. "Cost of Green Hydrogen," Energies, MDPI, vol. 17(18), pages 1-18, September.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:18:p:4651-:d:1480105
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    References listed on IDEAS

    as
    1. Kotowicz, Janusz & Uchman, Wojciech & Jurczyk, Michał & Sekret, Robert, 2023. "Evaluation of the potential for distributed generation of green hydrogen using metal-hydride storage methods," Applied Energy, Elsevier, vol. 344(C).
    2. Schrotenboer, Albert H. & Veenstra, Arjen A.T. & uit het Broek, Michiel A.J. & Ursavas, Evrim, 2022. "A Green Hydrogen Energy System: Optimal control strategies for integrated hydrogen storage and power generation with wind energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
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