Hard-To-Abate Decarbonization Strategy Using Waste to Power (WTP) for Clean/Green Hydrogen Generation - Technoeconomic Case Study in Malaysia

Abstract Limitation on reliable clean energy source to power the production of clean hydrogen has led the operator to come out with a business case for an onshore clean hydrogen production, using large-scale deployment of modular Organic Rankine Cycle (ORC) technology in converting industrial waste-heat to power (WTP) the Proton Exchanged Membrane (PEM) electrolyser. The primary objective of this study is to assess technical and commercial viability on large-scale deployment of modular Organic Rankine Cycle (ORC) technology in converting industrial waste-heat to power (WTP) at identified oil and gas plants within Malaysia. A methodical selection criterion was used to identify suitable plants for assessment. Based on the steam and/or gas turbine heat generated from each plant, the estimation of power generation and its potential hydrogen generation was calculated. The operational parameters and commercial enveloped of the techno-commercial assessment were investigated in this study. These parameters include optimum number of ORC unit installed, tax pricing and Levelized Cost of Electricity (LCOE) as well as cost for hydrogen per kg was established for each scenario to achieve positive NPV. A comprehensive understanding of the commercial approach for this initiative to be implemented can be obtained with insights into the pathway of obtaining the best Levelized Cost of Hydrogen (LCOH) for each site. The study shows maximum generation of 430mt of clean hydrogen can be generated per year, with maximum net power if 2.74 MW of clean electricity from the modular concept ORC technology. From the commercial analysis, the three (3) critical economic components identified from sensitivity study to make the economic positive are Carbon tax price, WACC % and CAPEX. One of the sites shows the most promising location for immediate implementation is with LCOH of 4USD, which is lower current hydrogen price i.e., 6-8 USD. The estimated payback period is 7 years with 3 mil USD NPV. This study offers new insight on the best approach to obtain positive economic assessment within the hard-to-abate GHG emission in realizing the NZCE ambition. Setbacks and challenges will be discussed for the technology deployment to be well accepted within the industry, and recommendations on new financial elements and additional policies from various angles will be highlighted to boost large-scale decarbonization deployment within this region.