Economic study of a large-scale renewable hydrogen application utilizing surplus renewable energy and natural gas pipeline transportation in China

A novel project solution for large-scale hydrogen application is proposed utilizing surplus wind and solar generated electricity for hydrogen generation and NG pipeline transportation for hydrogen-natural gas mixtures (called HCNG). This application can practically solve urgent issues of large-scale surplus wind and solar generated electricity and increasing NG demand in China. Economic evaluation is performed in terms of electricity and equipment capacity estimation, cost estimation, sensitivity analysis, profitability analysis and parametric study. Equipment expenses are dominant in the construction period, especially those of the electrolysers. Electricity cost and transportation cost are the main annual operating costs and greatly influence the HCNG and pure hydrogen costs. The project proves to be feasible through the profitability analysis. The main influence items are tested individually to guarantee project profitability within 22 years. The project can reduce 388.40 M Nm(3) CO2 emissions and increase 2998.52 M$ incomes for solar and wind power stations. (C) 2019 Hydrogen Energy Publications LLC. Published by Elsevier Ltd. All rights reserved.