Techno-Economic Analysis of Hydrogen Production Method with Electrolyzer

Abstract

This study presents a techno-economic analysis of hydrogen production methods as a sustainable alternative energy source, evaluating the technical and economic feasibility of hydrogen production systems that integrate electrolyzers with new and renewable energy (NRE) power sources. The analysis is conducted by developing a system configuration model based on operational and economic parameters, including generation capacity, electrolyzer capacity, battery capacity, and projected investment and operational costs.

A case study was conducted using solar power as the primary energy source, with a capacity factor of 16.6% in the Gresik area, aiming to produce 12,500 tons of hydrogen per year. The results indicate that the optimal combination of generation capacity, electrolyzer capacity, and energy storage system plays a crucial role in determining the levelized cost of hydrogen (LCOH).

The findings demonstrate that water electrolysis powered by solar PV has strong potential as a sustainable hydrogen production method, with an LCOH ranging from 5.97 to 13.81 A$/kg.

Furthermore, additional research is required to explore the utilization of oxygen gas as a valuable by-product, which could enhance the economic viability of hydrogen production and contribute to future cost competitiveness.