Autor
José Ignacio Linares
Director of the Repsol Foundation Chair in Energy Transition at the Comillas Pontifical University (ICAI)
As flexible management models can reduce the cost of renewable hydrogen production
Installing hydrogen production as an integrated system allows for a reduction in the levelized cost of production (LCOH), although to obtain the best results, it is crucial to adjust the installation to local demand. Hydrogen valleys can be an ideal location for these projects, due to their ability to integrate hydrogen production efficiently. 🌍
The cost of producing green hydrogen by renewable electrolysis depends mainly on the cost of electricity, especially when the electrolyzer operates more than 4,500 hours per year. ⏱️
To achieve these operating hours with intermittent renewable energy, it is essential to rely on wind energy or the combination of wind and photovoltaic energy ☀️.
When the electrolyzer is prioritized to operate at its nominal power, powered by intermittent renewable sources, the excess electricity generated must be evacuated to the grid. However, at certain times of the day, this evacuation may not be possible due to excessive renewable supply or low market demand. 🚫
The article's proposal is to self-consume these electrical surpluses in a demand close to the electrolyzer. This is where hydrogen valleys play a key role, allowing local hydrogen production for nearby industrial consumers that have a high electrical demand. 🔋⚙️
How is the cost of green hydrogen production reduced? 💡
Some of the keys to making the cost of green hydrogen more competitive are:
| Proposal | Expected result |
|---|---|
Integrating hydrogen production with surplus electricity | Reducing LCOH to meet CAPEX. |
Self-consumption of surplus electricity by industrial consumers | Electricity at competitive prices, close to the LCOE. |
Local hydrogen generation in hydrogen valleys | Optimization of resources and costs, with high industrial demand. |
Revenue from surplus electricity can offset the cost of feeding the electrolyser, which would allow the cost of hydrogen production (LCOH) to be reduced to CAPEX. In addition, the industry that purchases this surplus electricity could do so at competitive prices, almost at the level of the LCOE of the park. 💸
In other words, the integration of hydrogen production with surplus electricity is a key solution to reduce production costs, creating a package of services for industrial demand. This model could be considered as a generalisation of the concept of cogeneration, which also includes oxygen and heat dissipated by the electrolyser. 🔥
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