IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v313y2024ics0360544224037204.html
   My bibliography  Save this article

Levelized cost analysis of onshore wind-powered hydrogen production system in China considering landform heterogeneity

Author

Listed:
  • Li, Xinying
  • Tang, Xu
  • Ma, Meiyan
  • Wang, Min
  • Xu, Chuanbo

Abstract

Harnessing wind power for hydrogen production is a promising solution to tackle the challenges of climate change. However, the high cost associated with wind-powered hydrogen production systems emerges as a significant barrier. Hence, this study aims to present an economic analysis of wind-powered hydrogen production systems, taking into account the heterogeneity of landforms. The analysis utilizes hourly wind speed data from 290 anemometer towers throughout China, providing a comprehensive and accurate assessment of wind power generation. The findings reveal that landform heterogeneity has a significant impact on the levelized cost of hydrogen (LCOH), but such impact is expected to diminish over time. Moreover, the LCOE in various provinces ranges from ¥0.31–0.52/kWh, and the LCOH ranges from ¥25.75–36.31/kg, with an average of ¥30/kg. Electricity costs and CAPEX account for over 75 % of the total hydrogen production costs. Inner Mongolia, Xinjiang, and Jiangsu exhibit the lowest LCOH due to their lower wind power costs. Furthermore, the predicted results indicate a swift descent in the LCOH from 2020 to 2030. By the years 2030 and 2060, the nationwide average LCOH is projected to reach ¥25/kg and ¥22/kg, respectively, signifying an 18 % and 28 % reduction compared to the year 2020.

Suggested Citation

  • Li, Xinying & Tang, Xu & Ma, Meiyan & Wang, Min & Xu, Chuanbo, 2024. "Levelized cost analysis of onshore wind-powered hydrogen production system in China considering landform heterogeneity," Energy, Elsevier, vol. 313(C).
  • Handle: RePEc:eee:energy:v:313:y:2024:i:c:s0360544224037204
    DOI: 10.1016/j.energy.2024.133942
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544224037204
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.energy.2024.133942?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gunther Glenk & Stefan Reichelstein, 2019. "Publisher Correction: Economics of converting renewable power to hydrogen," Nature Energy, Nature, vol. 4(4), pages 347-347, April.
    2. Li, Jiaxuan & Zhu, Xun & Djilali, Ned & Yang, Yang & Ye, Dingding & Chen, Rong & Liao, Qiang, 2022. "Comparative well-to-pump assessment of fueling pathways for zero-carbon transportation in China: Hydrogen economy or methanol economy?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    3. Gunther Glenk & Stefan Reichelstein, 2019. "Economics of converting renewable power to hydrogen," Nature Energy, Nature, vol. 4(3), pages 216-222, March.
    4. Zhao, Tian & Liu, Zhixin & Jamasb, Tooraj, 2022. "Developing hydrogen refueling stations: An evolutionary game approach and the case of China," Energy Economics, Elsevier, vol. 115(C).
    5. Tang, Ou & Rehme, Jakob & Cerin, Pontus, 2022. "Levelized cost of hydrogen for refueling stations with solar PV and wind in Sweden: On-grid or off-grid?," Energy, Elsevier, vol. 241(C).
    6. Risco-Bravo, A. & Varela, C. & Bartels, J. & Zondervan, E., 2024. "From green hydrogen to electricity: A review on recent advances, challenges, and opportunities on power-to-hydrogen-to-power systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PA).
    7. 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).
    8. Yue, Meiling & Lambert, Hugo & Pahon, Elodie & Roche, Robin & Jemei, Samir & Hissel, Daniel, 2021. "Hydrogen energy systems: A critical review of technologies, applications, trends and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 146(C).
    9. Shangrong Chen & Sai Bravo-Melgarejo & Romain Mongeau & Estelle Malavolti, 2023. "Adopting and diffusing hydrogen technology in air transport: An evolutionary game theory approach," Post-Print hal-04198583, HAL.
    10. Stöckl, Fabian & Schill, Wolf-Peter & Zerrahn, Alexander, 2021. "Optimal supply chains and power sector benefits of green hydrogen," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11.
    11. Chen, Shangrong & Bravo-Melgarejo, Sai & Mongeau, Romain & Malavolti, Estelle, 2023. "Adopting and diffusing hydrogen technology in air transport: An evolutionary game theory approach," Energy Economics, Elsevier, vol. 125(C).
    12. Fan, Jing-Li & Yu, Pengwei & Li, Kai & Xu, Mao & Zhang, Xian, 2022. "A levelized cost of hydrogen (LCOH) comparison of coal-to-hydrogen with CCS and water electrolysis powered by renewable energy in China," Energy, Elsevier, vol. 242(C).
    13. Müller, Leander A. & Leonard, Alycia & Trotter, Philipp A. & Hirmer, Stephanie, 2023. "Green hydrogen production and use in low- and middle-income countries: A least-cost geospatial modelling approach applied to Kenya," Applied Energy, Elsevier, vol. 343(C).
    14. Ahshan, Razzaqul & Onen, Ahmet & Al-Badi, Abdullah H., 2022. "Assessment of wind-to-hydrogen (Wind-H2) generation prospects in the Sultanate of Oman," Renewable Energy, Elsevier, vol. 200(C), pages 271-282.
    15. Zheng, Yi & You, Shi & Huang, Chunjun & Jin, Xin, 2023. "Model-based economic analysis of off-grid wind/hydrogen systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 187(C).
    16. Xiang, Pianpian & Jiang, Kejun & Wang, Jiachen & He, Chenmin & Chen, Sha & Jiang, Weiyi, 2024. "Evaluation of LCOH of conventional technology, energy storage coupled solar PV electrolysis, and HTGR in China," Applied Energy, Elsevier, vol. 353(PA).
    17. De Roo, Guillaume & Parsons, John E., 2011. "A methodology for calculating the levelized cost of electricity in nuclear power systems with fuel recycling," Energy Economics, Elsevier, vol. 33(5), pages 826-839, September.
    18. Justin M. Bracci & Evan D. Sherwin & Naomi L. Boness & Adam R. Brandt, 2023. "A cost comparison of various hourly-reliable and net-zero hydrogen production pathways in the United States," Nature Communications, Nature, vol. 14(1), pages 1-13, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nyangon, Joseph & Darekar, Ayesha, 2024. "Advancements in hydrogen energy systems: A review of levelized costs, financial incentives and technological innovations," Innovation and Green Development, Elsevier, vol. 3(3).
    2. Kourougianni, Fanourios & Arsalis, Alexandros & Olympios, Andreas V. & Yiasoumas, Georgios & Konstantinou, Charalampos & Papanastasiou, Panos & Georghiou, George E., 2024. "A comprehensive review of green hydrogen energy systems," Renewable Energy, Elsevier, vol. 231(C).
    3. 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.
    4. Abadie, Luis Mª & Chamorro, José M., 2023. "Investment in wind-based hydrogen production under economic and physical uncertainties," Applied Energy, Elsevier, vol. 337(C).
    5. Beckmann, Jonas & Klöckner, Kai & Letmathe, Peter, 2024. "Scenario-based multi-criteria evaluation of sector coupling-based technology pathways for decarbonization with varying degrees of disruption," Energy, Elsevier, vol. 297(C).
    6. Blanco, Herib & Leaver, Jonathan & Dodds, Paul E. & Dickinson, Robert & García-Gusano, Diego & Iribarren, Diego & Lind, Arne & Wang, Changlong & Danebergs, Janis & Baumann, Martin, 2022. "A taxonomy of models for investigating hydrogen energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    7. Guangyao Fan & Hui Zhang & Bo Sun & Fengwen Pan, 2025. "Economic and environmental competitiveness of multiple hydrogen production pathways in China," Nature Communications, Nature, vol. 16(1), pages 1-16, December.
    8. Gordon, Joel A. & Balta-Ozkan, Nazmiye & Nabavi, Seyed Ali, 2023. "Socio-technical barriers to domestic hydrogen futures: Repurposing pipelines, policies, and public perceptions," Applied Energy, Elsevier, vol. 336(C).
    9. Ruhnau, Oliver & Schiele, Johanna, 2023. "Flexible green hydrogen: The effect of relaxing simultaneity requirements on project design, economics, and power sector emissions," Energy Policy, Elsevier, vol. 182(C).
    10. Kirchem, Dana & Schill, Wolf-Peter, 2023. "Power sector effects of green hydrogen production in Germany," Energy Policy, Elsevier, vol. 182(C).
    11. Sadiq, Muhammad & Alshehhi, Reem J. & Urs, Rahul Rajeevkumar & Mayyas, Ahmad T., 2023. "Techno-economic analysis of Green-H2@Scale production," Renewable Energy, Elsevier, vol. 219(P1).
    12. Zaiter, Issa & Ramadan, Mohamad & Bouabid, Ali & Mayyas, Ahmad & El-Fadel, Mutasem & Mezher, Toufic, 2024. "Enabling industrial decarbonization: Framework for hydrogen integration in the industrial energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 203(C).
    13. Schlund, David & Theile, Philipp, 2021. "Simultaneity of green energy and hydrogen production: Analysing the dispatch of a grid-connected electrolyser," EWI Working Papers 2021-10, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    14. Shirizadeh, Behrang & Quirion, Philippe, 2023. "Long-term optimization of the hydrogen-electricity nexus in France: Green, blue, or pink hydrogen?," Energy Policy, Elsevier, vol. 181(C).
    15. Schlund, David & Theile, Philipp, 2022. "Simultaneity of green energy and hydrogen production: Analysing the dispatch of a grid-connected electrolyser," Energy Policy, Elsevier, vol. 166(C).
    16. Ma, Huan & Sun, Qinghan & Chen, Lei & Chen, Qun & Zhao, Tian & He, Kelun & Xu, Fei & Min, Yong & Wang, Shunjiang & Zhou, Guiping, 2023. "Cogeneration transition for energy system decarbonization: From basic to flexible and complementary multi-energy sources," Renewable and Sustainable Energy Reviews, Elsevier, vol. 187(C).
    17. Ahang, Mohammadreza & Granado, Pedro Crespo del & Tomasgard, Asgeir, 2025. "Investments in green hydrogen as a flexibility source for the European power system by 2050: Does it pay off?," Applied Energy, Elsevier, vol. 378(PA).
    18. Davis, M. & Okunlola, A. & Di Lullo, G. & Giwa, T. & Kumar, A., 2023. "Greenhouse gas reduction potential and cost-effectiveness of economy-wide hydrogen-natural gas blending for energy end uses," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).
    19. Ruhnau, Oliver & Schiele, Johanna, 2022. "Flexible green hydrogen: Economic benefits without increasing emissions," EconStor Preprints 253267, ZBW - Leibniz Information Centre for Economics.
    20. Ruhnau, Oliver & Schiele, Johanna, 2022. "Flexible green hydrogen: Economic benefits without increasing power sector emissions," EconStor Preprints 258999, ZBW - Leibniz Information Centre for Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:313:y:2024:i:c:s0360544224037204. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.