The potential of Green Hydrogen as an alternative to Natural Gas Power Generation

In the evolving energy landscape, carbon pricing is emerging as a critical driver of decarbonization, influencing electricity generation costs and investment decisions. As carbon prices continue to rise, traditional fossil fuel-based power generation faces increasing economic pressure, accelerating the transition toward low-carbon alternatives. This study conducts a comprehensive techno-economic assessment of power generation technologies, evaluating the role of green Hydrogen (H2) as a competitive replacement for Natural Gas (NG) in Combined Cycle Gas Turbine (CCGT) power plants. By analyzing cost structures, operational dynamics, and emission reductions across various configurations, the findings demonstrate that H2-based power generation becomes increasingly viable under stringent carbon pricing. When carbon prices surpass 60US$/kWh, H2-fueled CCGT emerges as a competitive alternative option, achieving electricity production costs at approximately 11USc/kWh. The elimination of CO2 costs and a significant reduction in emissions (approximately 340g/kWh) underscore the environmental and economic advantages of H2 adoption. While fuel costs remain the dominant factor in electricity pricing, economies of scale and technological advancements are expected to enhance H2’s competitiveness. The study highlights the necessity of integrating carbon pricing with policy incentives to accelerate market adoption, positioning green H2 as a cornerstone of future sustainable power systems.