Techno-economic Analysis of Green-H2@Scale Production

The International Energy Agency (IEA) established the "H2 Implementing Agreement (HIA)" to promote H2 transition in various economic sectors. Today, less than one percent of the world's H2 production is “Green”. Lack of regulations, high production costs, and inadequate infrastructure are significant impediments. The U.S. Department of Energy set a "111-target" which translates into $1/kg-H2 in the next decade. Many countries in the Middle East and North Africa (MENA) region have announced ambitious plans to produce green H2. Through techno-economic metrics and the impact of economies of scale, this study investigates H2@Scale production. H2 Production Analysis and the System Advisor Model developed by the U.S. Department of Energy were used for analysis. The results demonstrate a significant decrease in the levelized cost of H2 (LCOH) when the production volume is scaled up. It was determined that the key cost drivers are capital cost, energy, installed balance of the plant, and mechanical and electrical subsystems. The studied location is found promising for scaled production and developing its commodity status. The findings could serve as a benchmark for key stakeholders, investors, policymakers, and the developer of relevant strategies in the infrastructure and H2 value chain.