Levelized cost of green hydrogen in Canada: Wind energy-driven water electrolysis

This study investigates the economic feasibility of green hydrogen production in Canada using a wind-powered Proton Exchange Membrane Water Electrolyser (PEMWE). Using the analytical tool H2A-Lite and the European Hydrogen Observatory (EHO) calculator, this investigation evaluates the Levelized Cost Of Hydrogen (LCOH). Three scenarios with varying energy integration strategies and capacity utilization rates between 45 % and 90 % were studied. These scenarios use fixed rates for electricity pricing between CAD 50 and CAD 100 per MWh. The findings reveal electricity costs as the dominant cost factor, comprising between 57 % and 87 % of the total LCOH. Scenario analyses demonstrate a potential LCOH from CAD 6.30/kg to CAD 4.83/kg, highlighting cost optimization opportunities. Sensitivity analyses within a ±10 % uncertainty window identify electricity prices as key cost influencers, with a sensitivity up to ±8.8 % on LCOH. Other main contributors are Capital Expenditure (CAPEX)., utilization rate and capacity factor. To improve the viability of Renewable Hydrogen (RH2), the study emphasizes the importance of government subsidies, technological advancements, and strategic integration. The insights provided here contribute to the progress of Canada toward a sustainable hydrogen economy and the achievement of ambitious global climate targets and goals.