It is a common opinion that the renewable sources play a primary role to reduce the greenhouse gas (GHG) emissions and that, according to the IEA, solar may become the largest source of low-carbon electricity capacity by 2040, when the share of all renewable energy sources (RES) in total power generation would reach 40%, led by China and India. In the European Union, soon after 2030, renewables will account for 80% of new capacity and wind power becomes the leading source of electricity, due to strong growth both onshore and offshore (IEA, 2017). The weather-dependent electricity generation from RES entails that systems for energy storage are becoming increasingly important. Among the various solutions that are being evaluated, hydrogen is currently considered to be one of the key enabling technologies allowing future large scale and long term storage of renewable power. At present, hydrogen is mainly produced from fossil fuels, and steam methane reforming (SMR) is the most widely used route for producing hydrogen from natural gas. None of the conventional methods used is GHG-free. The Power-to-Gas concept, based on water electrolysis utilizing electricity derived from renewable energies is the most environmentally friendly approach. Given its multiple uses, hydrogen is sold both as a fuel, which can produce electricity through fuel cells, and as a feedstock in several industrial processes. Just the feedstock could be, in a short term, the main market of RES-based hydrogen. In this paper, we present the results obtained from a techno-economic-financial evaluation of a system to produce green hydrogen to be sold as a feedstock for industries and research centres. We proposed, as a case study, a system which includes a 200 kW photovoltaic plant and a 180 kW electrolyser, to be located in Messina (Italy). According to our analyses, and taking into account the current development of technologies, we found out that an investment to realize a small-scale PV-based hydrogen production plant can be remunerative.

The Green Hydrogen as a Feedstock: A Techno-Economic Analysis of a Photovoltaic-Powered Electrolysis Plant

Agatino Nicita;Gaetano Squadrito;Antonio Pietro Francesco Andaloro;Gaetano Maggio
2019

Abstract

It is a common opinion that the renewable sources play a primary role to reduce the greenhouse gas (GHG) emissions and that, according to the IEA, solar may become the largest source of low-carbon electricity capacity by 2040, when the share of all renewable energy sources (RES) in total power generation would reach 40%, led by China and India. In the European Union, soon after 2030, renewables will account for 80% of new capacity and wind power becomes the leading source of electricity, due to strong growth both onshore and offshore (IEA, 2017). The weather-dependent electricity generation from RES entails that systems for energy storage are becoming increasingly important. Among the various solutions that are being evaluated, hydrogen is currently considered to be one of the key enabling technologies allowing future large scale and long term storage of renewable power. At present, hydrogen is mainly produced from fossil fuels, and steam methane reforming (SMR) is the most widely used route for producing hydrogen from natural gas. None of the conventional methods used is GHG-free. The Power-to-Gas concept, based on water electrolysis utilizing electricity derived from renewable energies is the most environmentally friendly approach. Given its multiple uses, hydrogen is sold both as a fuel, which can produce electricity through fuel cells, and as a feedstock in several industrial processes. Just the feedstock could be, in a short term, the main market of RES-based hydrogen. In this paper, we present the results obtained from a techno-economic-financial evaluation of a system to produce green hydrogen to be sold as a feedstock for industries and research centres. We proposed, as a case study, a system which includes a 200 kW photovoltaic plant and a 180 kW electrolyser, to be located in Messina (Italy). According to our analyses, and taking into account the current development of technologies, we found out that an investment to realize a small-scale PV-based hydrogen production plant can be remunerative.
2019
Istituto di Tecnologie Avanzate per l'Energia - ITAE
Economia dell'idrogeno
Analisi economica-finanziaria
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/20.500.14243/361864
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