Design of a hybrid renewable plant-based hydrogen production system considering electricity market prices in Finland

Abstract

The development of cost-effective and eco-friendly power to hydrogen systems is essential for achieving the lowest possible production cost of hydrogen. Ensuring a dependable and economical hydrogen supply becomes more challenging when dealing with fluctuating renewable energy sources. Hence, grid connection as one of the sources of input power along with a hybrid solar-wind source plus Finland electricity market prices is an approach considered in this research. This study aims to design a power-to-hydrogen system by conducting extensive simulations of several scenarios, primarily emphasising optimising hydrogen production and profitability. The research considers three scenarios, each combining distinct limitations and functioning characteristics, in order to evaluate their influence on system performance. The outcome is gained by engaging proper values of the components to design the size of the electrolyser, hydrogen tank, the volume of produced hydrogen, and revenues. Nevertheless, by comparing all scenarios the findings signify that in scenario I, producing hydrogen on a large scale substantially decreases the levelized cost of electricity and hydrogen, resulting in higher profitability. Still, it needs massive investment via private or governmental organisations. Moreover, by implementing constraints on the hydrogen sales and adjusting component capabilities, scenarios II and III represent a practical company setting with the lowest values of levelized cost of electricity, levelized cost of hydrogen, carbon intensity, and financial profit which are 0.048 €/kWh, 1.596 €/kg, 0.252 g_CO2/kWh, 126 M€ for scenario II and 0.034 €/kWh, 1.140 €/kg, 0.204 g_CO2/kWh, and 180 M€ for scenario III respectively. The findings indicate that the power-to-hydrogen system process meets environmental issues besides making profits for investors.