A Modular Design of Green Hydrogen Production Systems Using Offshore Wind Energy and its Economic Evaluation

Abstract Green hydrogen is an energy carrier which can offer an alternative renewable energy resource. The objective of this paper is to perform a modular design of a green hydrogen production system using offshore wind energy and perform its economic evaluations with the possibility of rescaling the system from the modular scale to the economic scale. In this approach, green hydrogen is being produced by splitting water into hydrogen and oxygen using Proton Exchange Membrane (PEM) electrolysis process, utilizing power from offshore wind energy located nearby the offshore hydrogen production system. Our study showed that the modular scale of hydrogen production system may need approximately 20 - 25 MW based on 10-MW PEM electrolyzer (hereafter referred to as PEME) capacity, producing approximately 200 kgH2/h. The economic analysis for this modular system is performed using detailed data analysis and commercial software for the available current and forecasted levelized costs of offshore wind power, the PEME, and the auxiliary equipment. The modular design of the green hydrogen production system using offshore wind energy is presented. The economic analysis of the system is performed using the costs of critical equipment and projected costs of wind power and PEME based on the recent DNV (Det Norske Veritas) and NREL (National Renewable Energy Laboratory) reports for the extended period of 2020 - 2035. These results demonstrate that the cost of hydrogen per kg may lie in the range of ~ $4 - $2 and ~ $5 - $2 for the cases of DNV and NREL, respectively. The sensitivity analysis shows that the levelized cost of hydrogen production may reduce significantly in the future when the cost of offshore wind power and PEME are reduced. Our modular design for producing hydrogen can be rescaled to economic scale for industrial and commercial applications and can also help advance further energy sustainability. This economic analysis can help better understand the capital expenses (CAPEX) and operating expenses (OPEX) involved in the production of green hydrogen to reduce the carbon footprint and greenhouse gas emissions.