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Is Greece Ready for a Hydrogen Energy Transition?—Quantifying Relative Costs in Hard to Abate Industries

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  • Evanthia A. Nanaki

    (Department of New Technologies & Alternative Energy Sources, HelleniQ Energy, 8A Chimarras Street, 15125 Maroussi, Greece
    Department of Business Development and Technology, Aarhus University, Birk Centerpark 15, Innovatorium, 7400 Herning, Denmark)

  • Spyros Kiartzis

    (Department of New Technologies & Alternative Energy Sources, HelleniQ Energy, 8A Chimarras Street, 15125 Maroussi, Greece)

  • George Xydis

    (Department of Business Development and Technology, Aarhus University, Birk Centerpark 15, Innovatorium, 7400 Herning, Denmark
    Fluid Mechanics and Turbomachinery Laboratory, Department of Mechanical Engineering, University of the Peloponnese, 1 Megalou Alexandrou Str., Koukouli, 26334 Patras, Greece)

Abstract

During the past few years, hydrogen use has come to be considered as an alternative energy carrier in a future decarbonized world. Many developed nations are undergoing a shift towards low-carbon energy sources, driven by the excessive reliance on fossil fuels and the detrimental effects of climate change. This study aims to investigate the potential for hydrogen deployment in the Greek energy market during the next few decades. In this context, green hydrogen’s potential application in the Greek market is being assessed, employing an integrated techno-economic model grounded in worldwide trends and localized expenses. The forthcoming years will see an analysis of both the challenges and opportunities surrounding the integration and implementation of hydrogen in new and existing processes within Greece. Many alternative ways to produce hydrogen in Greece are investigated, contemplating different production paths. We evaluate how fluctuations in hydrogen, oil, and carbon prices affect the economics of green hydrogen adoption in oil refining, as is detailed in the draft of the European Union delegated act published in May 2022. The Levelized Cost of Hydrogen (LCOH) for different scenarios is calculated for the time frame up until 2050. A sensitivity analysis reveals that investment costs, electricity prices, electrolyzer efficiency, and carbon taxes significantly influence the LCOH, ultimately impacting the economic competitiveness of hydrogen production. These findings underscore the importance of aligning public–private partnership agendas in hydrogen production to create optimal conditions for investment attraction and development.

Suggested Citation

  • Evanthia A. Nanaki & Spyros Kiartzis & George Xydis, 2024. "Is Greece Ready for a Hydrogen Energy Transition?—Quantifying Relative Costs in Hard to Abate Industries," Energies, MDPI, vol. 17(7), pages 1-17, April.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:7:p:1722-:d:1369734
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    References listed on IDEAS

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    2. Janssen, Jacob L.L.C.C. & Weeda, Marcel & Detz, Remko J. & van der Zwaan, Bob, 2022. "Country-specific cost projections for renewable hydrogen production through off-grid electricity systems," Applied Energy, Elsevier, vol. 309(C).
    3. Pelaez-Samaniego, Manuel Raul & Riveros-Godoy, Gustavo & Torres-Contreras, Santiago & Garcia-Perez, Tsai & Albornoz-Vintimilla, Esteban, 2014. "Production and use of electrolytic hydrogen in Ecuador towards a low carbon economy," Energy, Elsevier, vol. 64(C), pages 626-631.
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