Making the Production of Green Hydrogen by Electrolyser Economically Viable

Abstract

Green hydrogen plays an important role in the energy transition. It can function as a storage medium, as well as a replacement for fossil fuels in transport or high-temperature heat processes. However, the economic feasibility of electrolysers has proved to be a problem. Even though a lot of research has been done to the electrolysis technology, very few research has been done to the implementation of an electrolyser.

For this research, a physical model of an electrolyser has been developed, as well as an Energy Management System (EMS). For this system, trading strategies for electricity markets have been developed. By trading on the imbalance and day ahead market, the contribution margin (hydrogen revenue minus electricity costs) has been significantly increased by over 27%. Seasonal hydrogen storage in salt caverns has proven to be a promising solution for producing more hydrogen and increasing revenue, depending on the storage costs that are applied. A Battery Energy Storage System (BESS) has been added to the system for its competence in dynamic behaviour on the electricity markets. For the addition of a BESS to an electrolyser, no conclusive proof of the benefits for the economic viability of green hydrogen has been found.