Techno-economic analysis of Green-H2@Scale production

The International Energy Agency (IEA) established the H2 Implementing Agreement (HIA) to promote H2 transition in various economic sectors. Today, less than one percent of the world's H2 production is Green. Lack of regulations, high production costs, and inadequate infrastructure are significant impediments. The U.S. Department of Energy set a 111-target which translates into $1/kg-H2 in the next decade. Many countries in the Middle East and North Africa (MENA) region have announced ambitious plans to produce green H2. Through techno-economic metrics and the impact of economies of scale, this study investigates H2@Scale production. H2 Production Analysis and the System Advisor Model developed by the U.S. Department of Energy were used for analysis. The results demonstrate a significant decrease in the levelized cost of H2 (LCOH) when the production volume is scaled up. It was determined that the key cost drivers are capital cost, energy, installed balance of the plant, and mechanical and electrical subsystems. The studied location is found promising for scaled production and developing its commodity status. The findings could serve as a benchmark for key stakeholders, investors, policymakers, and the developer of relevant strategies in the infrastructure and H2 value chain.

Automated summary

The International Energy Agency has established an agreement to promote the transition to green hydrogen in various sectors. Currently, the production of green hydrogen is limited due to lack of regulations, high costs, and inadequate infrastructure. This study investigates the potential and cost of large-scale hydrogen production, finding that costs decrease significantly with increased production volume. The location studied shows promise for scaled production and development of green hydrogen.