Economic viability and production capacity of wind generated renewable hydrogen

Abstract

Generally, wind to power conversion is calculated by assuming the quality of wind as measured with a Weibull probability distribution at wind speed during power generation. We build on this method by modifying the Weibull distributions to reflect the actual range of wind speeds and wind energy density. This was combined with log law that modifies wind speed based on the height from the ground, to derive the wind power potential at windy sites. The study also provides the levelized cost of renewable energy and hydrogen conversion capacity at the proposed sites. The calculated cost ($/kWh) suggests that the commercial viability is not feasible. We have also electrolyzed the wind-generated electricity to measure the production capacity of renewable hydrogen. We found that all the sites considered are commercially viable for hydrogen production from wind-generated electricity.

Economics of converting renewable power to hydrogen

“…Our findings explain that PtG is currently applied only in niche applications [32][33][34] . In comparison to earlier studies on the economics of hydrogen production, our results are more favourable regarding the competitive position of hydrogen obtained from renewable energy sources 16,17,35,36 . The resulting differences reflect that our calculations are based on hybrid energy systems that are optimized both in terms of the relative capacity sizes of the two subsystems (renewable power and PtG) and the real-time operation of the system.…”

“…An investor in such a hybrid energy system effectively acquires a 'real option' that allows for real-time optimization by either selling electricity at the current market price or converting it to hydrogen. Such flexibility is valuable in an environment in which both electricity prices and renewable power generation fluctuate over time 17,18 . Renewable hydrogen production will then be considered economically viable if investing in a combined facility has a positive net present value (NPV) and furthermore this value exceeds the NPV of the renewable energy facility on its own.…”

Assessment of Wind Energy Potential for the Production of Renewable Hydrogen in Sindh Province of Pakistan

“…Comparing the two energy sources of hydrogen and gasoline, we observed that 9.5 kg of hydrogen are equal to 25 kg of gasoline. A 14 kg tank can store 25 kg of hydrogen, but 25 kg of hydrogen storage requires a tank of 145 kg mass [59]. The reason is that the volume of gasoline fuel is four times smaller than that of hydrogen fuel.…”

“…Further, the cost structure breakdown is as, 87% is the cost of capital of electricity production, 8% is the cost of hydrogen generation, 6% is the cost of hydrogen storage, while 50% is the operating and maintenance cost of the turbine, 5% is the cost of gasification. Although the cost of electrolysis, water supply, operation and raw material is 2%, 20%, 10% and 10% respectively [59]. The total cost of capital could be reduced due to a decrease in configuration cost of the turbine or a decrease in the raw material cost for the electrolysis process, because it is the second highest cost contribution in the whole process.…”

A DEA Approach for Assessing the Energy, Environmental and Economic Performance of Top 20 Industrial Countries

“…As GHG emissions cause global climate change, there is growing concern about energy use and carbon dioxide emissions. Therefore, it is essential to systematically and regularly monitor and measure the environmental performance of economies around the world [8]. These measurements not only provide brief information for assessing growth, but also serve as a guide for countries to set environmental goals for international agreements such as the EU Climate and Energy Package.…”