Assessment of the Potential for Green Hydrogen Fuelling of Very Heavy Vehicles in New Zealand

Abstract

This study examined the feasibility of green hydrogen as a transport fuel for the very heavy vehicle (VHV) fleet in New Zealand. Green hydrogen is assumed to be produced through water electrolysis using purely renewable energy (RE) as an electricity source. This study chose very heavy vehicles as a potential market for green hydrogen, because it is considered “low-hanging fruit” for hydrogen fuel in a sector where battery electrification is less feasible. The study assumed a large-scale, decentralized, embedded (dedicated) grid-connected hydrogen system of production using polymer electrolytic membrane (PEM) electrolysers. The analysis comprised three steps. First, the hydrogen demand was calculated. Second, the additional RE requirement was determined and compared with consented, but unbuilt, capacity. Finally, the hydrogen production cost was calculated using the concept of levelized cost. Sensitivity analysis and cost reduction scenarios were also undertaken. The results indicate an overall green hydrogen demand for VHVs of 71 million kg, or 8.5 PJ, per year, compared to the 14.7 PJ of diesel fuel demand for the same VHV travelled kilometres. The results also indicate that the estimated 9824 GWh of RE electricity that could be generated from consented, yet unbuilt, RE projects is greater than the electricity demand for green hydrogen production, which was calculated to be 4492 GWh. The calculated levelized hydrogen cost is NZD 6.83/kg. Electricity cost was found to be the most significant cost parameter for green hydrogen production. A combined cost reduction for CAPEX and electricity translates to a hydrogen cost reduction in 10 to 20 years.

Transitioning to a Hydrogen Future: Analysing Demand and Supply Dynamics in New Zealand's Transportation Sector

“…The nascent state of this energy source underscores the value of reviewing different methodologies. Perez et al (2021) estimated the hydrogen demand for very heavy vehicles (VHVs) at 71 million kg. In contrast, the Castalia-MBIE green hydrogen model projects a demand ranging from 195 million kg to 605 million kg.…”

“…Production costs for water electrolysis are split between CAPEX (e.g., plant and electrolyzer) and OPEX (e.g., electricity). Factors like production technology, system design, and energy resources affect these costs (Perez et al, 2021). Research emphasizes that the capital cost of electrolyzers and operational electricity costs are the major influencers of production costs (Perez et al, 2021).…”

“…Factors like production technology, system design, and energy resources affect these costs (Perez et al, 2021). Research emphasizes that the capital cost of electrolyzers and operational electricity costs are the major influencers of production costs (Perez et al, 2021). Further details on transport-related production costs will also be explored.…”

Hydrogen Energy as Future of Sustainable Mobility

“…Adopting the concept of hydrogen fuel for heavy vehicles has attracted New Zealand and Paris to meet the zero climate change commitments. As reported in (MBIE, 2019), the proper examination of feasibility for adopting clean hydrogen for heavy vehicles exceeds 30 tons has been discussed in (Concept Consulting Group, 2021;Perez et al, 2021).…”

Production of Green Hydrogen in Bangladesh and its Levelized Cost

“…The Levelized cost of Energy (LCOE) method is used to estimate the cost. The project uses polymer electrolytic membrane (PEM) based electrolyzers and RE resources (mostly wind) for electricity production [6]. For this assessment, considered cost of electrolysis about 973.89 USD/kW and Electricity is 52.17 USD/kW.…”