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Economic and Environmental Assessment of Hydrogen Production from Brazilian Energy Grid

Author

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  • José Carlos Curvelo Santana

    (Department of Industrial engineering, Polytechnic School, São Paulo University, Av. Prof. Luciano Gualberto, 380-Butantã, São Paulo 05508010, SP, Brazil)

  • Pedro Gerber Machado

    (Department of Industrial engineering, Polytechnic School, São Paulo University, Av. Prof. Luciano Gualberto, 380-Butantã, São Paulo 05508010, SP, Brazil)

  • Cláudio Augusto Oller do Nascimento

    (Department of Chemical Engineering, Polytechnic School, São Paulo University, São Paulo 05508010, SP, Brazil)

  • Celma de Oliveira Ribeiro

    (Department of Industrial engineering, Polytechnic School, São Paulo University, Av. Prof. Luciano Gualberto, 380-Butantã, São Paulo 05508010, SP, Brazil)

Abstract

The Brazilian energy grid is considered as one of the cleanest in the world, because it is composed of more than 80% of renewable energy sources. This work aimed to apply the levelized costs (LCOH) and environmental cost accounting techniques to demonstrate the feasibility of producing hydrogen (H 2 ) by alkaline electrolysis powered by the Brazilian energy grid. A project of hydrogen production, with a lifetime of 20 years, had been evaluated by economical and sensitivity analysis. The production capacity (8.89 to 46.67 kg H 2 /h), production volume (25 to 100%), hydrogen sale price (1 to 5 USD/kg H 2 ) and the MAR rate were varied. Results showed that at 2 USD/kg H 2 , all H 2 production plant sizes are economically viable. On this condition, a payback of fewer than 4 years, an IRR greater than 31, a break-even point between 56 and 68% of the production volume and a ROI above 400% were found. The sensitivity analysis showed that the best economic condition was found at 35.56 kg H 2 /h of the plant size, which generated a net present value of USD 10.4 million. The cost of hydrogen varied between 1.26 and 1.64 USD/kg and a LCOH of 37.76 to 48.71 USD/MWh. LCA analysis showed that the hydrogen production project mitigated from 26 to 131 thousand tons of CO 2 , under the conditions studied.

Suggested Citation

  • José Carlos Curvelo Santana & Pedro Gerber Machado & Cláudio Augusto Oller do Nascimento & Celma de Oliveira Ribeiro, 2023. "Economic and Environmental Assessment of Hydrogen Production from Brazilian Energy Grid," Energies, MDPI, vol. 16(9), pages 1-21, April.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:9:p:3769-:d:1135352
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    1. Hojun Song & Yunji Kim & Heena Yang, 2023. "Design and Optimization of an Alkaline Electrolysis System for Small-Scale Hydropower Integration," Energies, MDPI, vol. 17(1), pages 1-13, December.

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