Electrolytic hydrogen energy storage investment

Which is more cost-effective electrolytic hydrogen production than off-grid hydrogen production?

On-grid electrolytic hydrogen production found more cost-effective than off-grid. System’s savings between 2–3 US$ Billions throughout study horizon. The increasing interest in electrolytic renewable generation technologies Alkaline water electrolysis. Battery energy storage system. Concentrated solar power with thermal storage.

How is electrolytic hydrogen demand met?

For each of these scenarios, electrolytic hydrogen demand is met by production at the best economic (=least cost) locations (i.e., spatial grid cells), and other hydrogen production routes complement electrolytic hydrogen.

How will electrolytic hydrogen impact the evolution of energy systems?

This incorporation of electrolytic hydrogen could impact the evolution of energy systems in at least two ways. First, hydrogen could be used as an energy vector in traditionally fossil-fuel dominated sectors. Second, new electrolyzer loads will increase power generation requirements.

Is electrolytic hydrogen a viable alternative to grid electricity?

Dedicated electricity generation from renewables or nuclear power offers an alternative to the use of grid electricity for hydrogen production. With declining costs for renewable electricity, in particular from solar PV and wind, interest is growing in electrolytic hydrogen and there have been several demonstration projects in recent years.

Can a hydrogen storage facility be cost-effective?

The high value of energy curtailment in the Off-grid production scenario could increase the levelized cost of photovoltaic electricity up to 19%, and consequently the levelized costs of hydrogen production in up to 10%. Under the studied scenarios, an inter-seasonal hydrogen storage facility was not found to be cost-effective.

Can flexible electrolytic hydrogen load reduce capacity requirements?

Authors such as Galván et al. (2022) have suggested that in addition to increased renewable penetration, flexible electrolytic hydrogen loads would lower capacity requirements of dispatchable technologies, such as natural gas power plants.