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Economic analysis of hydrogen storage and transportation technology for offshore hydrogen production platform

Author

Listed:
  • Hu, Ziming
  • Li, Jingfa
  • Fan, Chaoyang
  • Xiao, Jiale
  • Huang, Huijie
  • Yu, Bo
  • Shi, Baocheng

Abstract

Hydrogen production from offshore wind power is an effective means to solve the problem of wind power grid connection and promote the development of the hydrogen industry. However, the current offshore hydrogen storage and transportation technologies are immature and lack comprehensive economic analysis. This study establishes a levelized cost of hydrogen storage and transportation model to evaluate four offshore hydrogen storage and transportation methods: gas-hydrogen shipping, liquid-hydrogen shipping, solid-state hydrogen shipping, and existing pipeline hydrogen blending transportation, incorporating both fixed investments and operating costs for a comprehensive economic feasibility analysis. Using a 300 MW offshore wind-powered hydrogen production platform as a case study, the research conducts a comprehensive economic analysis and comparison of these four storage and transportation technologies across varying offshore distances of 50, 100, and 150 km. Additionally, a sensitivity analysis of cost-influencing factors is performed. The results indicate that the gas-hydrogen shipping is the most economical method, with a levelized cost of storage and transportation 2.50-3.83 CNY/kg. As the offshore distance increases, the levelized cost of gas-hydrogen shipping significantly increases by 53.2%, while the increase in existing pipelines is 5.1%. Electricity consumption emerges as a significant cost factor across all methods, with sensitivity ratio (SR) values of 32.47%, 54.14%, 79.26%, and 91.58%, respectively. The sensitivity analysis further reveals that electricity price fluctuations have varying degrees of impact across different methods. A 20% reduction in electricity price leads to a 18.2% cost decrease for existing pipeline hydrogen blending transportation, while gas-hydrogen shipping only a 6.1% cost reduction. The evaluation framework provides a robust quantitative basis for selecting optimal storage and transportation methods in offshore wind-powered hydrogen production systems.

Suggested Citation

  • Hu, Ziming & Li, Jingfa & Fan, Chaoyang & Xiao, Jiale & Huang, Huijie & Yu, Bo & Shi, Baocheng, 2026. "Economic analysis of hydrogen storage and transportation technology for offshore hydrogen production platform," Energy, Elsevier, vol. 347(C).
    • Handle: RePEc:eee:energy:v:347:y:2026:i:c:s0360544226004998
    DOI: 10.1016/j.energy.2026.140396
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    References listed on IDEAS

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