Renewable hydrogen blending into urban natural gas grids with power-to-gas: A techno-economic assessment for Greece

Renewable hydrogen can be produced with Power-to-Gas (PtG) systems, using renewable energy sources (RES), with minimal Greenhouse Gas (GHG) emissions. With this paper, the authors aim to provide clear insights into optimal PtG systems’ techno-economic performance, in the case of renewable hydrogen blending into gas grids such as that of the city of Athens. Two different production methods are investigated, namely one in which the investor owns the required energy generation units, and one in which the required energy is procured from independent producers. Seven different underlying parametric scenarios are investigated, reflecting possible future costs developments according to scientific literature. The results show Levelized Costs of produced hydrogen ranging from 2.14 to 5 €/kg. Production through own energy units is currently overall more economical. Energy and electrolysis costs comprise most of the costs, indicating the necessity for considerable price reductions for green hydrogen to become competitive. • Levelized cost of hydrogen in the range of 2.14–5 €/kg. • Hydrogen production with own energy production units is 15% more economical. • Hydrogen sale price per kg-greenhouse gas savings trade-off. • Energy costs comprise 57%–62% of Levelized Cost of Hydrogen. • Electrolysis costs comprise 37%–41% of Levelized Cost of Hydrogen.