Profitability of hydrogen production: Assessment of investments in electrolysers under various market circumstances
Year: 2024
Type: article
Abstract: Although hydrogen is increasingly seen as a crucial energy carrier in future zero-carbon energy system, a profitable exploitation of electrolysers requires still high amounts of subsidies. Using a model of internationally integrated electricity and hydrogen markets, this paper analyses to what extent this may change in future market circumstances. We find that in particular the future supply of renewable electricity, the demand for electricity as well as the prices of natural gas and carbon strongly affect the profitability of electrolysis. In order to make massive investments in electrolysers profitable with significantly lower subsidy requirements, the amount of renewable electricity generation needs to grow strongly and the carbon prices should be higher, while the demand for electricity should not increase accordingly.
Source: Applied Energy
Authors: Arjen T. Veenstra, Machiel Mulder
Language: English
Subfield: Energy Engineering and Power Technology
Field: Energy
Domain: Physical Sciences
Open Access status: hybrid
Estimated APC paid: $4,300
OpenAlex ID: W4401505187