Techno economic analysis tool for the sizing and optimization of an on-grid hydrogen hub: A case study for energy transition in Argentina

• Published in: International journal of hydrogen energy Vol. 65; pp. 659 - 670
• Main Authors: Ibagon, N., Muñoz, P., Correa, G.
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 02-05-2024
• Subjects: Green hydrogen; Levelized cost of hydrogen; On-grid hydrogen hub; Optimization tool; Techno-economic analysis; Techno-economic analysis; Green hydrogen; Levelized cost of hydrogen; Optimization tool; On-grid hydrogen hub
• ISSN: 0360-3199; 1879-3487
• DOI: 10.1016/j.ijhydene.2024.04.007

This study analyzes a techno-economic optimization tool developed in-house to size on-grid and off-grid green hydrogen plants and estimate their minimum production costs. The sizing is determined through an optimization process that minimizes the levelized cost of hydrogen for a specific plant location and hydrogen demand. The analysis considers the a PV and wind power plant, electrolyzer, hydrogen conversion/processing, storage, land transportation and grid energy trade. A location in Argentina was selected as a case study, in order to describe some of the model considerations, the optimization procedure and analyze the obtained results. The results show that grid connection has a significant impact on plant sizing. Its convenience over an off-grid hydrogen hub will depend greatly on the grid energy commercialization schemes and costs, as well as the interconnection cost. The obtained results show that the minimum levelized cost of energy is around 3.35and3.20USD/kgH2 for off-grid and on-grid hydrogen hubs, respectively.
•An adaptable tool was developed to evaluate on-grid green hydrogen production costs.•LCOH estimation for H2 production, process, transport, storage and grid connection.•Energy prices and unsupplied H2 costs affect project sizing and demand fulfillment.•H2 storage is viable for low grid energy price scenarios, considering not supplied H2.•Grid connection is viable if its cost increases the total CAPEX by less than 5%.