Power-to-X in Southern Iraq: Techno-economic assessment of solar-powered hydrogen electrolysis combined with carbon capture and storage for sustainable energy solutions

• Techno-economic feasibility of a Power-to-X (PtX) system in Iraq is conducted. • A comprehensive model is developed to simulate E-fuel production with the system cost analysis. • The proposed plan is capable of producing 44 tonnes of hydrocarbons and 3.36 tonnes of heavy oils annually. • The net present value of the plan is estimated at $ 464 million with a given market price of $2 per liter for E-fuel. This study investigates the techno-economic feasibility of a Power-to-X (PtX) system by integrating solar-powered hydrogen electrolysis with carbon capture and Fischer-Tropsch (FT) synthesis processes for e-fuel production in Basra, Iraq. To this aim, a comprehensive modeling framework is developed to cover the detailed simulation of E-fuel production along with the system cost analysis. The proposed PtX system is supposed to be located near the Hartha power plant, which is one of the main sources of electricity in the Basra region, allowing for the utilization of captured CO 2 from the power plant’s exhaust gas. The PtX plant design shows significant potential, producing 2.44 tonnes of (C12-C20) hydrocarbons and 3.36 tonnes of (C21-C40) heavy oils annually. This is achieved by utilizing 7.5 and 74.2 tonnes per year of hydrogen generated from solar electrolysis and captured CO 2 , respectively. A cash flow analysis covering 25 years shows that an E-fuel market price of $10 per liter is needed to achieve a positive cash flow within 15 years. The study also indicates that implementing a $200 per tonne carbon tax improves the economic feasibility of the project by allowing for earlier positive cash flows from 6 years and a quicker break-even point at the current E-fuel market price of $2 per liter with a NPV of $ 464 million. Sensitivity analysis reveals that higher carbon taxes and e-fuel prices enhance profitability by reducing payback periods and increasing the NPV. However, an increase in hydrogen production costs introduces substantial risk, with higher costs decreasing economic viability. The feasibility assessment suggests that despite the substantial initial investment needed for various system components, the long-term advantages include reduced CO 2 emissions and the potential for Iraq to emerge as a leader in renewable fuel production. Stable policies, robust carbon taxes, and cost-efficient hydrogen production are essential for the successful implementation of PtX project.