IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v17y2024i7p1653-d1366896.html
   My bibliography  Save this article

Techno-Economic Analysis of Grid-Connected Hydrogen Production via Water Electrolysis

Author

Listed:
  • Pengcheng Zhu

    (Department of Electrical Engineering and Information Systems, The University of Tokyo, Tokyo 113-8656, Japan)

  • Masahiro Mae

    (Department of Electrical Engineering and Information Systems, The University of Tokyo, Tokyo 113-8656, Japan)

  • Ryuji Matsuhashi

    (Department of Electrical Engineering and Information Systems, The University of Tokyo, Tokyo 113-8656, Japan)

Abstract

As the global energy landscape transitions towards a more sustainable future, hydrogen has emerged as a promising energy carrier due to its potential to decarbonize various sectors. However, the economic competitiveness of hydrogen production by water electrolysis strongly depends on renewable energy source (RES) availability. Thus, it is necessary to overcome the challenges related to the intermittent nature of RESs. This paper presents a comprehensive techno-economic analysis of complementing green hydrogen production with grid electricity. An evaluation model for the levelized cost of hydrogen (LCOH) is proposed, considering both CO 2 emissions and the influence of RES fluctuations on electrolyzers. A minimum load restriction is required to avoid crossover gas. Moreover, a new operation strategy is developed for hydrogen production plants to determine optimal bidding in the grid electricity market to minimize the LCOH. We evaluate the feasibility of the proposed approach with a case study based on data from the Kyushu area in Japan. The results show that the proposed method can reduce the LCOH by 11% to 33%, and increase hydrogen productivity by 86% to 140%, without significantly increasing CO 2 emission levels.

Suggested Citation

  • Pengcheng Zhu & Masahiro Mae & Ryuji Matsuhashi, 2024. "Techno-Economic Analysis of Grid-Connected Hydrogen Production via Water Electrolysis," Energies, MDPI, vol. 17(7), pages 1-16, March.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:7:p:1653-:d:1366896
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/17/7/1653/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/17/7/1653/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pan, Guangsheng & Gu, Wei & Qiu, Haifeng & Lu, Yuping & Zhou, Suyang & Wu, Zhi, 2020. "Bi-level mixed-integer planning for electricity-hydrogen integrated energy system considering levelized cost of hydrogen," Applied Energy, Elsevier, vol. 270(C).
    2. Bolívar Jaramillo, Lucas & Weidlich, Anke, 2016. "Optimal microgrid scheduling with peak load reduction involving an electrolyzer and flexible loads," Applied Energy, Elsevier, vol. 169(C), pages 857-865.
    3. Hurtubia, Byron & Sauma, Enzo, 2021. "Economic and environmental analysis of hydrogen production when complementing renewable energy generation with grid electricity," Applied Energy, Elsevier, vol. 304(C).
    Full references (including those not matched with items on IDEAS)

    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. Lifeng Du & Yanmei Yang & Luli Zhou & Min Liu, 2024. "Greenhouse Gas Reduction Potential and Economics of Green Hydrogen via Water Electrolysis: A Systematic Review of Value-Chain-Wide Decarbonization," Sustainability, MDPI, vol. 16(11), pages 1-37, May.
    2. Hurtubia, Byron & Sauma, Enzo, 2021. "Economic and environmental analysis of hydrogen production when complementing renewable energy generation with grid electricity," Applied Energy, Elsevier, vol. 304(C).
    3. Avilés A., Camilo & Oliva H., Sebastian & Watts, David, 2019. "Single-dwelling and community renewable microgrids: Optimal sizing and energy management for new business models," Applied Energy, Elsevier, vol. 254(C).
    4. Mikovits, Christian & Wetterlund, Elisabeth & Wehrle, Sebastian & Baumgartner, Johann & Schmidt, Johannes, 2021. "Stronger together: Multi-annual variability of hydrogen production supported by wind power in Sweden," Applied Energy, Elsevier, vol. 282(PB).
    5. Martínez-Lao, Juan & Montoya, Francisco G. & Montoya, Maria G. & Manzano-Agugliaro, Francisco, 2017. "Electric vehicles in Spain: An overview of charging systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 970-983.
    6. Shi, Mengshu & Wang, Weiye & Han, Yaxuan & Huang, Yuansheng, 2022. "Research on comprehensive benefit of hydrogen storage in microgrid system," Renewable Energy, Elsevier, vol. 194(C), pages 621-635.
    7. Kinnon, Michael Mac & Razeghi, Ghazal & Samuelsen, Scott, 2021. "The role of fuel cells in port microgrids to support sustainable goods movement," Renewable and Sustainable Energy Reviews, Elsevier, vol. 147(C).
    8. Yang, Jingze & Chi, Hetian & Cheng, Mohan & Dong, Mingqi & Li, Siwu & Yao, Hong, 2023. "Performance analysis of hydrogen supply using curtailed power from a solar-wind-storage power system," Renewable Energy, Elsevier, vol. 212(C), pages 1005-1019.
    9. Zhiming Lu & Youting Li & Guying Zhuo & Chuanbo Xu, 2023. "Configuration Optimization of Hydrogen-Based Multi-Microgrid Systems under Electricity Market Trading and Different Hydrogen Production Strategies," Sustainability, MDPI, vol. 15(8), pages 1-23, April.
    10. Ussama Assad & Muhammad Arshad Shehzad Hassan & Umar Farooq & Asif Kabir & Muhammad Zeeshan Khan & S. Sabahat H. Bukhari & Zain ul Abidin Jaffri & Judit Oláh & József Popp, 2022. "Smart Grid, Demand Response and Optimization: A Critical Review of Computational Methods," Energies, MDPI, vol. 15(6), pages 1-36, March.
    11. Mo, Jingke & Kang, Zhenye & Yang, Gaoqiang & Retterer, Scott T. & Cullen, David A. & Toops, Todd J. & Green, Johney B. & Zhang, Feng-Yuan, 2016. "Thin liquid/gas diffusion layers for high-efficiency hydrogen production from water splitting," Applied Energy, Elsevier, vol. 177(C), pages 817-822.
    12. Zacharopoulos, Leon & Thonemann, Nils & Dumeier, Marcel & Geldermann, Jutta, 2023. "Environmental optimization of the charge of battery electric vehicles," Applied Energy, Elsevier, vol. 329(C).
    13. Wang, Shouxiang & Wang, Shaomin & Zhao, Qianyu & Dong, Shuai & Li, Hao, 2023. "Optimal dispatch of integrated energy station considering carbon capture and hydrogen demand," Energy, Elsevier, vol. 269(C).
    14. Liang, M.S. & Huang, G.H. & Chen, J.P. & Li, Y.P., 2022. "Development of non-deterministic energy-water-carbon nexus planning model: A case study of Shanghai, China," Energy, Elsevier, vol. 246(C).
    15. Javidsharifi, Mahshid & Niknam, Taher & Aghaei, Jamshid & Mokryani, Geev, 2018. "Multi-objective short-term scheduling of a renewable-based microgrid in the presence of tidal resources and storage devices," Applied Energy, Elsevier, vol. 216(C), pages 367-381.
    16. Schlund, David & Theile, Philipp, 2022. "Simultaneity of green energy and hydrogen production: Analysing the dispatch of a grid-connected electrolyser," Energy Policy, Elsevier, vol. 166(C).
    17. Li, Pei-Hao & Pye, Steve, 2018. "Assessing the benefits of demand-side flexibility in residential and transport sectors from an integrated energy systems perspective," Applied Energy, Elsevier, vol. 228(C), pages 965-979.
    18. Wang, Jing & Kang, Lixia & Liu, Yongzhong, 2024. "Optimal design of a renewable hydrogen production system by coordinating multiple PV arrays and multiple electrolyzers," Renewable Energy, Elsevier, vol. 225(C).
    19. Zhang, Rufeng & Sun, Haihang & Li, Guoqing & Jiang, Tao & Li, Xue & Chen, Houhe & Zou, He, 2023. "Reserve provision of combined-cycle unit in joint day-ahead energy and reserve markets," Applied Energy, Elsevier, vol. 336(C).
    20. Yuan, Yi & Ding, Tao & Chang, Xinyue & Jia, Wenhao & Xue, Yixun, 2024. "A distributed multi-objective optimization method for scheduling of integrated electricity and hydrogen systems," Applied Energy, Elsevier, vol. 355(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:gam:jeners:v:17:y:2024:i:7:p:1653-:d:1366896. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.