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Can Green Hydrogen Production Be Economically Viable under Current Market Conditions

Author

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  • David Jure Jovan

    (Department of Systems and Control, Jožef Stefan Institute, Jamova cesta 39, 1000 Ljubljana, Slovenia)

  • Gregor Dolanc

    (Department of Systems and Control, Jožef Stefan Institute, Jamova cesta 39, 1000 Ljubljana, Slovenia)

Abstract

This paper discusses the potential of green hydrogen production in a case study of a Slovenian hydro power plant. To assess the feasibility and eligibility of hydrogen production at the power plant, we present an overview of current hydrogen prices and the costs of the power-to-gas system for green hydrogen production. After defining the production cost for hydrogen at the case study hydro power plant, we elaborate on the profitability of hydrogen production over electricity. As hydrogen can be used as a sustainable energy vector in industry, heating, mobility, and the electro energetic sectors, we discuss the current competitiveness of hydrogen in the heating and transport sectors. Considering the current prices of different fuels, it is shown that hydrogen can be competitive in the transport sector if it is unencumbered by various environmental taxes. The second part of the paper deals with hydrogen production in the context of secondary control ancillary service provided by a case study power plant. Namely, hydrogen can be produced during the time period when there is no demand for extra electric power within a secondary control ancillary service, and thus the economics of power plant operation can be improved.

Suggested Citation

  • David Jure Jovan & Gregor Dolanc, 2020. "Can Green Hydrogen Production Be Economically Viable under Current Market Conditions," Energies, MDPI, vol. 13(24), pages 1-16, December.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:24:p:6599-:d:461989
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    6. Sebastián Mantilla & Diogo M. F. Santos, 2022. "Green and Blue Hydrogen Production: An Overview in Colombia," Energies, MDPI, vol. 15(23), pages 1-21, November.
    7. Byoungjik Park & Yangkyun Kim & Kwanwoo Lee & Shinwon Paik & Chankyu Kang, 2021. "Risk Assessment Method Combining Independent Protection Layers (IPL) of Layer of Protection Analysis (LOPA) and RISKCURVES Software: Case Study of Hydrogen Refueling Stations in Urban Areas," Energies, MDPI, vol. 14(13), pages 1-13, July.
    8. Sergii Bespalko & Jerzy Mizeraczyk, 2022. "Energy Balance of Hydrogen Production in the Cathodic Regime of Plasma-Driven Solution Electrolysis of Na 2 CO 3 Aqueous Solution with Argon Carrier Gas," Energies, MDPI, vol. 15(24), pages 1-13, December.
    9. Andrea Dumančić & Nela Vlahinić Lenz & Goran Majstrović, 2023. "Can Hydrogen Production Be Economically Viable on the Existing Gas-Fired Power Plant Location? New Empirical Evidence," Energies, MDPI, vol. 16(9), pages 1-20, April.
    10. Anton Manakhov & Maxim Orlov & Mustafa Babiker & Abdulaziz S. Al-Qasim, 2022. "A Perspective on Decarbonizing Mobility: An All-Electrification vs. an All-Hydrogenization Venue," Energies, MDPI, vol. 15(15), pages 1-13, July.
    11. Santanu Kumar Dash & Suprava Chakraborty & Devaraj Elangovan, 2023. "A Brief Review of Hydrogen Production Methods and Their Challenges," Energies, MDPI, vol. 16(3), pages 1-17, January.
    12. Schrotenboer, Albert H. & Veenstra, Arjen A.T. & uit het Broek, Michiel A.J. & Ursavas, Evrim, 2022. "A Green Hydrogen Energy System: Optimal control strategies for integrated hydrogen storage and power generation with wind energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    13. Laura Pérez Orosa & Eva Chinarro & Domingo Guinea & María C. García-Alegre, 2022. "Hydrogen Production by Wastewater Alkaline Electro-Oxidation," Energies, MDPI, vol. 15(16), pages 1-19, August.
    14. Christian Schnuelle & Timo Wassermann & Torben Stuehrmann, 2022. "Mind the Gap—A Socio-Economic Analysis on Price Developments of Green Hydrogen, Synthetic Fuels, and Conventional Energy Carriers in Germany," Energies, MDPI, vol. 15(10), pages 1-13, May.
    15. Nguyen Van Duc Long & Le Cao Nhien & Moonyong Lee, 2023. "Advanced Technologies in Hydrogen Revolution," Energies, MDPI, vol. 16(5), pages 1-4, February.
    16. Jae-Eun Shin, 2022. "Hydrogen Technology Development and Policy Status by Value Chain in South Korea," Energies, MDPI, vol. 15(23), pages 1-19, November.
    17. Justyna Cader & Renata Koneczna & Piotr Olczak, 2021. "The Impact of Economic, Energy, and Environmental Factors on the Development of the Hydrogen Economy," Energies, MDPI, vol. 14(16), pages 1-22, August.
    18. Luís Manuel Rodrigues & Tiago Soares & Igor Rezende & João Paulo Fontoura & Vladimiro Miranda, 2023. "Economic Analysis of a Hydrogen Power Plant in the Portuguese Electricity Market," Energies, MDPI, vol. 16(3), pages 1-17, February.
    19. Konstantin Gomonov & Marina Reshetnikova & Svetlana Ratner, 2023. "Economic Analysis of Recently Announced Green Hydrogen Projects in Russia: A Multiple Case Study," Energies, MDPI, vol. 16(10), pages 1-15, May.
    20. Alessandra Perna & Mariagiovanna Minutillo & Simona Di Micco & Elio Jannelli, 2022. "Design and Costs Analysis of Hydrogen Refuelling Stations Based on Different Hydrogen Sources and Plant Configurations," Energies, MDPI, vol. 15(2), pages 1-22, January.
    21. Gupta, Ruchi & Guibentif, Thomas M.M. & Friedl, Markus & Parra, David & Patel, Martin Kumar, 2023. "Macroeconomic analysis of a new green hydrogen industry using Input-Output analysis: The case of Switzerland," Energy Policy, Elsevier, vol. 183(C).
    22. Charlotte Jarosch & Philipp Jahnke & Johannes Giehl & Jana Himmel, 2022. "Modelling Decentralized Hydrogen Systems: Lessons Learned and Challenges from German Regions," Energies, MDPI, vol. 15(4), pages 1-27, February.

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