Technical and economic analysis of renewable hydrogen production: A focus on the role of subsidies

Subject Areas : International Journal of Smart Electrical Engineering

Maryam Sajadi ¹ , Mehdi Jahangiri ²

1 - Energy and Environment Research Center, Shahrekord Branch, Islamic Azad University, Shahrekord, Iran
2 - Energy Research Center, Shahrekord Branch, Islamic Azad University, Shahrekord, Iran.

Received: 2024-01-06 Accepted : 2024-04-12 Published : 2024-08-07

Keywords: Water electrolyzer, Green hydrogen, Renewable electricity, Emissions penalty, Random variability.,

Abstract :

Production of hydrogen from renewable energy (RE) such as wind and solar power in Iran is of significant importance due to the country's considerable wind and solar potential. For this reason, Tabriz and Jask, being the windiest and sunniest stations in Iran, respectively, have been selected for study. In the present work, the crucial impact of government subsidies on renewable hydrogen production in Iran is evaluated for the first time. Energy-economic-environmental analyses based on data over the 25-year project lifetime were conducted using HOMER V.2.81. The wind and solar electricity generated using four technologies- water electrolysis, steam methane reforming, biological method, and breaking water molecules through thermochemical processes-are converted into hydrogen. Results indicate that in Tabriz and Jask, electricity production from RE costs $0.145/kWh and $0.125/kWh, respectively. The RE system requires a 100kW diesel generator in both stations. The optimal wind turbine size is 20kW, while the solar cells are best at 140kW. The payback period in both stations, compared to the traditional diesel generator system, is less than 2 years. Renewable electricity production in these stations has led to a reduction in pollutants, approximately 161 tons in Tabriz and 263 tons in Jask. The study findings concerning hydrogen production suggest that the most significant solar hydrogen is generated through water electrolysis. Subsidies granted for renewable electricity production have a positive impact on the economies of wind and solar systems, reducing the payback period. Taking into account these subsidies, surplus electricity increases, and solar-produced hydrogen exceeds that generated by wind.