LAPSE:2023.35710
Published Article
LAPSE:2023.35710
Economic and Environmental Assessment of Hydrogen Production from Brazilian Energy Grid
José Carlos Curvelo Santana, Pedro Gerber Machado, Cláudio Augusto Oller do Nascimento, Celma de Oliveira Ribeiro
May 23, 2023
The Brazilian energy grid is considered as one of the cleanest in the world, because it is composed of more than 80% of renewable energy sources. This work aimed to apply the levelized costs (LCOH) and environmental cost accounting techniques to demonstrate the feasibility of producing hydrogen (H2) by alkaline electrolysis powered by the Brazilian energy grid. A project of hydrogen production, with a lifetime of 20 years, had been evaluated by economical and sensitivity analysis. The production capacity (8.89 to 46.67 kg H2/h), production volume (25 to 100%), hydrogen sale price (1 to 5 USD/kg H2) and the MAR rate were varied. Results showed that at 2 USD/kg H2, all H2 production plant sizes are economically viable. On this condition, a payback of fewer than 4 years, an IRR greater than 31, a break-even point between 56 and 68% of the production volume and a ROI above 400% were found. The sensitivity analysis showed that the best economic condition was found at 35.56 kg H2/h of the plant size, which generated a net present value of USD 10.4 million. The cost of hydrogen varied between 1.26 and 1.64 USD/kg and a LCOH of 37.76 to 48.71 USD/MWh. LCA analysis showed that the hydrogen production project mitigated from 26 to 131 thousand tons of CO2, under the conditions studied.
Keywords
carbon credit, energy grid, environmental cost accounting, hydrogen production, levelized cost of hydrogen
Suggested Citation
Santana JCC, Machado PG, Nascimento CAOD, Ribeiro CDO. Economic and Environmental Assessment of Hydrogen Production from Brazilian Energy Grid. (2023). LAPSE:2023.35710
Author Affiliations
Santana JCC: Department of Industrial engineering, Polytechnic School, São Paulo University, Av. Prof. Luciano Gualberto, 380-Butantã, São Paulo 05508010, SP, Brazil [ORCID]
Machado PG: Department of Industrial engineering, Polytechnic School, São Paulo University, Av. Prof. Luciano Gualberto, 380-Butantã, São Paulo 05508010, SP, Brazil
Nascimento CAOD: Department of Chemical Engineering, Polytechnic School, São Paulo University, São Paulo 05508010, SP, Brazil
Ribeiro CDO: Department of Industrial engineering, Polytechnic School, São Paulo University, Av. Prof. Luciano Gualberto, 380-Butantã, São Paulo 05508010, SP, Brazil [ORCID]
Journal Name
Energies
Volume
16
Issue
9
First Page
3769
Year
2023
Publication Date
2023-04-28
Published Version
ISSN
1996-1073
Version Comments
Original Submission
Other Meta
PII: en16093769, Publication Type: Journal Article
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LAPSE:2023.35710
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doi:10.3390/en16093769
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May 23, 2023
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CC BY 4.0
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May 23, 2023
 
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May 23, 2023
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Original Submitter
Calvin Tsay
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