Comparative assessment of economic and environmental performance of 1-MW electrolysis-based hydrogen production in Jeju

Amid growing concerns about global warming, green hydrogen has emerged as a key energy solution for future decarbonization. In this study, the economic and environmental performance of hydrogen production via electrolysis in Jeju was evaluated based on an existing 3.3 MW-class electrolysis demonstration system, with system performance and costs normalized to a 1 MW basis for consistent comparison among different electrolysis technologies and electricity sources. Three electrolysis technologies—alkaline water electrolysis (AWE), proton exchange membrane water electrolysis (PEMWE), and anion exchange membrane water electrolysis (AEMWE)—were considered. The levelized cost of hydrogen (LCOH) and life cycle assessment (LCA) were analyzed, and an extended economic indicator, the levelized cost of hydrogen and environment (LCOH&E), was additionally evaluated by incorporating Korea’s Emissions Trading System (ETS). The results indicate that operational electricity consumption accounts for 68–72% of the LCOH and more than 98% of total CO₂ emissions, highlighting its dominant role in determining both economic and environmental performance. Under Korea’s clean hydrogen certification scheme, grid-based hydrogen did not meet the qualification criteria, whereas photovoltaic- and wind-based hydrogen achieved different certification grades. Even when carbon emission costs were incorporated through the LCOH&E framework, grid-based hydrogen remained approximately 22% less expensive than renewable energy-based hydrogen. • Evaluated economic-environmental impact of electrolysis hydrogen production in Jeju. • Electricity consumption dominates costs (68∼72% of LCOH) and CO2 emissions (>98%). • Grid-based hydrogen was cheaper but not clean, while PV/wind met Korea's standards. • Environmental external costs were integrated into LCOH&E using Korea’s ETS price. • Grid-based hydrogen was still more economical than PV/wind-based hydrogen by LCOH&E.