Onshore, Offshore or In-turbine Electrolysis? Techno-economic Overview of Alternative Integration Designs for Green Hydrogen Production into Offshore Wind Power Hubs

Massive investments in offshore wind power generate significant challenges on how this electricity will be integrated into the incumbent energy systems. In this context, green hydrogen produced by offshore wind emerges as a promising solution to remove barriers towards a carbon-free economy in Europe and beyond. Motivated by the recent developments in Denmark with the decision to construct the world’s first artificial Offshore Energy Hub, this paper investigates how the lowest cost for green hydrogen can be achieved. A model proposing an integrated design of the hydrogen and offshore electric power infrastructure, determining the levelised costs of both hydrogen and electricity, is proposed. The economic feasibility of hydrogen production from 2 Offshore Wind Power Hubs is evaluated considering the combination of different electrolyser placements, technologies and modes of operations. The results show that costs down to 2.4 €/kg can be achieved for green hydrogen production offshore, competitive with the hydrogen costs currently produced by natural gas. Moreover, a reduction of up to 13% of the cost of wind electricity is registered when an electrolyser is installed offshore shaving the peak loads.