The Influence of Falling Costs for Electrolyzers on the Location Factors for Green Hydrogen Production

authored by

Raphael Niepelt, Marlon Schlemminger, Dennis Bredemeier, Florian Peterssen, Clemens Lohr, Astrid Bensmann, Richard Hanke-Rauschenbach, Rolf Brendel

Abstract

A fast and extensive build-up of green hydrogen production is a crucial element for the global energy transition. The availability of low-cost renewable energy at high operating hours of the electrolyzer is a central criterion in today's choice of location for green hydrogen production. It is analyzed how decreasing electrolyzer costs that are expected by many may influence this choice. The energy system optimization framework ESTRAM is used to find the optimum configuration of wind turbine, photovoltaic (PV), and electrolyzer capacity for covering a given hydrogen demand by locally produced green hydrogen in different European locations. It is found that PV is part of the cost-optimal solution in 96% of 1372 statistical regions in Europe. Decreasing electrolyzer costs are favoring the utilization of PV in wind–solar hybrid plants. At low electrolyzer costs, pure solar hydrogen outperforms the hybrid variant in many places if hydrogen storage is available, even with few full operating hours per year. At the same time, production costs are converging significantly. The article adds a new perspective to the discussion, as it is systematically shown how further technology development may lead to a shift in locational advantages for green hydrogen production, what should be considered to avoid stranded assets when building infrastructure.

Organisation(s)

Institute of Solid State Physics
Institute of Electric Power Systems
Section Electrical Energy Storage Systems
Solar Energy Section

External Organisation(s)

Institute for Solar Energy Research (ISFH)

Type

Article

Journal

Solar RRL

Volume

7

Publication date

04.09.2023

Publication status

Published

Peer reviewed

Yes

ASJC Scopus subject areas

Electronic, Optical and Magnetic Materials, Atomic and Molecular Physics, and Optics, Energy Engineering and Power Technology, Electrical and Electronic Engineering

Sustainable Development Goals

SDG 7 - Affordable and Clean Energy

Electronic version(s)

https://doi.org/10.1002/solr.202300317 (Access: Open)