Comparative Techno-economic Assessment of Wind-Powered Green Hydrogen Pathways

2025-08-29

AI Summary

High production costs hinder the large-scale deployment of green hydrogen. This study develops a multidimensional techno-economic assessment framework centered on the levelized cost of hydrogen (LCOH) to systematically compare the economic viability of diverse wind power–electrolysis coupling pathways in the UK, incorporating system configuration, geographic siting, electricity market mechanisms, and policy interventions. Innovatively, the framework integrates real-time electricity price responsiveness, spatial resource matching, and subsidy coordination within a unified model and conducts quantitative sensitivity analysis of key parameters. Results indicate that electricity cost is the dominant LCOH driver (contributing >50%), followed by electrolyzer capital expenditure. Optimized siting and active electricity market participation can reduce LCOH by 25–35%; combining these with targeted subsidies further narrows the cost gap with grey hydrogen. The study delivers quantifiable, evidence-based insights to inform green hydrogen commercialization strategies and policy design.

Technology Category

• Game Theory and Economic Paradigms: Auctions and Market-Based Systems
• Search and Optimization: Combinatorial Optimization
• Machine Learning: Efficient ML / Green AI

Application Category

• Economics, Online Markets and Human Computation: Cost models of using LLMs in production systems
• Systems and Infrastructure for Web, Mobile and WoT: Sustainability and carbon-aware systems for Web, mobile, and WoT
• Graph Algorithms and Modeling for the Web: Efficient manipulation of static and dynamic Web-related graphs

Abstract

Amid global interest in resilient energy systems, green hydrogen is considered vital to the net-zero transition, yet its deployment remains limited by high production cost. The cost is determined by the its production pathway, system configuration, asset location, and interplay with electricity markets and regulatory frameworks. To compare different deployment strategies in the UK, we develop a comprehensive techno-economic framework based on the Levelised Cost of Hydrogen (LCOH) assessment. We apply this framework to 5 configurations of wind-electrolyser systems, identify the most cost-effective business cases, and conduct a sensitivity analysis of key economic parameters. Our results reveal that electricity cost is the dominant contributor to LCOH, followed by the electrolyser cost. Our work highlights the crucial role that location, market arrangements and control strategies among RES and hydrogen investors play in the economic feasibility of deploying green hydrogen systems. Policies that subsidise low-cost electricity access and optimise deployment can lower LCOH, enhancing the economic competitiveness of green hydrogen.

Problem

• Assessing cost-effective wind-powered green hydrogen production pathways
• Identifying key economic factors influencing hydrogen production costs
• Evaluating system configurations and policy impacts on deployment feasibility

Innovation

• Techno-economic framework using Levelised Cost of Hydrogen
• Analysis of wind-electrolyser system configurations
• Sensitivity assessment of electricity and electrolyser costs