Techno-economic Evaluation of Medium Scale Power to Hydrogen to Combined Heat and Power Generation Systems

The European Hydrogen Strategy and the new « Fit for 55 » package indicate the urgent need for the alignment of policy with the European Green Deal and European Union (EU) climate law for the decarbonization of the energy system and the use of hydrogen towards 2030 and 2050. The increasing carbon prices in EU Emission Trading System (ETS) as well as the lack of dispatchable thermal power generation as part of the Coal exit are expected to enhance the role of Combined Heat and Power (CHP) in the future energy system. In the present work, the use of renewable hydrogen for the decarbonization of CHP plants is investigated for various fossil fuel substitution ratios and the impact of the overall efficiency, the reduction of direct emissions and the carbon footprint of heat and power generation are reported. The analysis provides insights on efficient and decarbonized cogeneration linking the power with the heat sector via renewable hydrogen production and use. The levelized cost of hydrogen production as well as the levelized cost of electricity in the power to hydrogen to combined heat and power system are analyzed for various natural gas substitution scenarios as well as current and future projections of EU ETS carbon prices.