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Can Green Hydrogen Production Be Economically Viable under Current Market Conditions

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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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    References listed on IDEAS

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    5. Mazza, Andrea & Bompard, Ettore & Chicco, Gianfranco, 2018. "Applications of power to gas technologies in emerging electrical systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 92(C), pages 794-806.
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