Onshore, offshore or in-turbine electrolysis? Techno-economic overview of alternative integration designs for green hydrogen production into Offshore Wind Power Hubs

TL;DR

This paper evaluates various integration designs for offshore wind-powered green hydrogen production, proposing an economic model that identifies cost-effective configurations and demonstrates competitive hydrogen costs with natural gas.

Contribution

It introduces an integrated design model for offshore hydrogen and electric infrastructure, analyzing cost implications of different electrolyser placements and technologies.

Findings

Green hydrogen costs as low as 2.4 EUR/kg offshore.

Offshore electrolyser installation reduces wind electricity costs by up to 13%.

Proposes a feasible economic framework for offshore hydrogen production.

Abstract

Massive investments in offshore wind power generate significant challenges on how this electricity will be integrated into the incumbent energy systems. In this context, green hydrogen produced by offshore wind emerges as a promising solution to remove barriers towards a carbon-free economy in Europe and beyond. Motivated by the recent developments in Denmark with the decision to construct the world's first artificial Offshore Energy Hub, this paper investigates how the lowest cost for green hydrogen can be achieved. A model proposing an integrated design of the hydrogen and offshore electric power infrastructure, determining the levelised costs of both hydrogen and electricity, is proposed. The economic feasibility of hydrogen production from Offshore Wind Power Hubs is evaluated considering the combination of different electrolyser placements, technologies and modes of operations. The results show that costs down to 2.4 EUR per kg can be achieved for green hydrogen production offshore, competitive with the hydrogen costs currently produced by natural gas. Moreover, a reduction of up to 13 pct. of the cost of wind electricity is registered when an electrolyser is installed offshore shaving the peak loads.