Economic and technical evaluation of on-site electrolysis solar hydrogen refueling station in Corsica: A case study of Ajaccio

The European Union's ambitious target of achieving climate neutrality by 2050 necessitates a transition away from fossil fuels towards renewable energy sources. Hydrogen has emerged as a promising alternative, particularly as a fuel for large-scale transportation, including heavy-duty vehicles. The fleet buses in Ajaccio travel 1,494,007.9 km per year, responsible for 1453.67 tonnes of CO2 emissions annually. Utilizing green hydrogen, derived from renewable sources, can reduce these emissions by 87.3%. This paper conducts a comprehensive techno-economic analysis of a hydrogen refueling station, aiming to foster the adoption of this technology and gain widespread acceptance. Our objective is to determine the economic viability of a hydrogen station capable of producing 440 kg of hydrogen daily. The Levelized Hydrogen Cost (LHC) is found to be 6.95 €/kg over a 20-year lifespan with electrolyzers operating at a power of 4.5 MW. The total installation cost amounts to 22,324,617 €. Remarkably, the return on investment is realized in the 11th year of operation. Electrolyzers account for 46% of the system's total CAPEX and 29% of its OPEX, indicating that advancements in electrolyzer technology will play a crucial role in reducing production costs. Our findings underscore the economic viability of the hydrogen refueling station, with a compelling LHC value indicative of its cost-effectiveness. The successful return on investment within a relatively short timeframe highlights the project's potential as a financially sound and sustainable initiative.