Modelling and Cost Assessment of Hydrogen Production with Hybrid Energy Sources

Yeni Sri Rahayu, Supri Arianto, Suwarno Suwarno

Abstract


Green hydrogen production holds significant potential for supporting Indonesia's clean energy transition towards Net Zero Emissions (NZE) by 2060. However, its current Levelized Cost of Hydrogen (LCOH) of USD 4.3 to USD 8.3 per kilogram makes it less cost-effective than fossil fuel-derived hydrogen. This study aims to analyze the economics of a Hydrogen Plant (H2P) utilizing hybrid energy sources in Gresik. The methodology integrates advanced modeling techniques, including the Levelized Cost of Hydrogen (LCOH) and Net Present Value (NPV) analysis, to quantify production costs and assess long-term profitability. Data for this study was meticulously collected from a Hydrogen Plant in Gresik through historical operational records, technical specifications, projected energy demand, and meteorological data. By systematically comparing five alternative configurations: Grid+Solar PV (50,6 kWp), Grid+Solar PV (100 kWp), Grid+Solar PV (200 kWp), Grid+Solar PV (400 kWp), and Grid+Microhydro (76 kW). Configuration 5 was found to be the most economical under current assumptions, achieving the lowest LCOH of IDR 100.023/kg (USD 6,23/kg) and the highest NPV (IDR 22.935.241.285). This result is align with global decarbonization goals which are projected to be economically competitive at USD 2/kg by 2050.


Full Text:

PDF

References


G. Huang and J. Chen, “Perspectives on the impacts of climate change and their adaptation,” National Science Open, vol. 3, no. 1, p. 20230084, Jan. 2024, doi: 10.1360/NSO/20230084.

B. J. Singh and R. Sehgal, “Green Hydrogen Production: Bridging the Gap to a Sustainable Energy Future,” Energy, Environment, and Sustainability, vol. Part F2879, pp. 83–124, 2024, doi: 10.1007/978-981-97-1339-4_5.

C. T. Altaf, O. Demir, T. O. Colak, et al., "Decarbonizing the industry with green hydrogen," in Towards Green Hydrogen Generation, M. Sankir and N. D. Sankir, Eds., 2024. [Online]. Available: https://doi.org/10.1002/9781394234110.ch1

N. Armaroli, E. Bandini, and A. Barbieri, “Hydrogen as an energy carrier: constraints and opportunities,” Pure and Applied Chemistry, vol. 96, no. 4, pp. 479–485, Apr. 2024, doi: 10.1515/PAC-2023-0801/MACHINEREADABLECITATION/RIS.

Z. Xie, Q. Jin, and W. Lu, “A Review on Hydrogen Storage and Transportation: Progresses and Challenges,” Jun. 2024, doi: 10.20944/PREPRINTS202406.0609.V1.

M. Gül and E. Akyüz, “Techno-economic viability and future price projections of photovoltaic-powered green hydrogen production in strategic regions of Turkey,” J Clean Prod, vol. 430, Dec. 2023, doi: 10.1016/j.jclepro.2023.139627.

D. H. Chung, E. J. Graham, B. A. Paren, et al., "Design space for PEM electrolysis for cost-effective H₂ production using grid electricity," Ind. Eng. Chem. Res., vol. 63, no. 16, pp. 7258–7270, Apr. 2024. [Online]. Available: https://doi.org/10.1021/acs.iecr.4c00123

M. H. Ali Khan, R. Daiyan, Z. Han, et al., “Designing optimal integrated electricity supply configurations for renewable hydrogen generation in Australia,” iScience, vol. 24, no. 6, Jun. 2021, doi: 10.1016/j.isci.2021.102539.

IRENA, Green hydrogen: A guide to policy making. 2020.

M. Minutillo, A. Perna, A. Forcina, et al., “Analyzing the levelized cost of hydrogen in refueling stations with on-site hydrogen production via water electrolysis in the Italian scenario,” Int J Hydrogen Energy, vol. 46, no. 26, pp. 13667–13677, Apr. 2021, doi: 10.1016/j.ijhydene.2020.11.110.

R. P. Borges, F. Franco, F. N. Serralha, and I. Cabrita, “Green Hydrogen Production at the Gigawatt Scale in Portugal: A Technical and Economic Evaluation,” Energies (Basel), vol. 17, no. 7, Apr. 2024, doi: 10.3390/en17071638.

Paul Lako and Giorgio Simbolotti, “Hydropower,” 2010. Accessed: Jun. 17, 2025. [Online]. Available: www.etsap.org

M. Farid, “Analisa Perancangan Sistem Pembangkit Tenaga Hibrida Di Pantai Seruni, Kabupaten Bantaeng, Sulawesi Selatan,” 2018, Accessed: Jun. 15, 2025. [Online]. Available: https://dspace.uii.ac.id/handle/123456789/12617

I. K. Sugirianta, I. Giriantari, and I. S. Kumara, “Analisa Keekonomian Tarif Penjualan Listrik Pembangkit Listrik Tenaga Surya 1 MWp Bangli Dengan Metode Life Cycle Cost,” Majalah Ilmiah Teknologi Elektro, pp. 121–126, 2016. Accessed: Jun. 15, 2025. [Online].

Y. Astriani, W. Tushar, and M. Nadarajah, “Optimal planning of renewable energy park for green hydrogen production using detailed cost and efficiency curves of PEM electrolyzer,” Int J Hydrogen Energy, vol. 79, pp. 1331–1346, Aug. 2024, doi: 10.1016/j.ijhydene.2024.07.107.

W. G. Colella, “Thermodynamic, Environmental, and Economic Analysis of Electrosynthesis of Hydrogen Fuel with State-of-the-Art Solid Oxide Electrolyzers,” ECS Meeting Abstracts, vol. MA2018-01, no. 28, pp. 1600–1600, Apr. 2018, doi: 10.1149/MA2018-01/28/1600.

S. Di Micco, M. Minutillo, A. Perna, and E. Jannelli, “On-site solar powered refueling stations for green hydrogen production and distribution: performances and costs,” in E3S Web of Conferences, EDP Sciences, Jan. 2022. doi: 10.1051/e3sconf/202233401005.

S. Dokhani, M. Assadi, and B. G. Pollet, “Techno-economic assessment of hydrogen production from seawater,” Int J Hydrogen Energy, vol. 48, no. 26, pp. 9592–9608, Mar. 2023, doi: 10.1016/j.ijhydene.2022.11.200.

P. Fabianek and R. Madlener, “Techno-economic analysis and optimal sizing of hybrid PV-wind systems for hydrogen production by PEM electrolysis in California and Northern Germany,” Int J Hydrogen Energy, vol. 67, pp. 1157–1172, May 2024, doi: 10.1016/j.ijhydene.2023.11.196.

A. Ibáñez-Rioja, L. Järvinen, P. Puranen, et al., “Off-grid solar PV–wind power–battery–water electrolyzer plant: Simultaneous optimization of component capacities and system control,” Appl Energy, vol. 345, Sep. 2023, doi: 10.1016/j.apenergy.2023.121277.

R. Li, X. Jin, P. Yang, et al., “Techno-economic analysis of a wind-photovoltaic-electrolysis-battery hybrid energy system for power and hydrogen generation,” Energy Convers Manag, 2023.

H. Munther, Q. Hassan, and J. Teneta, “Feasibility of Photovoltaic-Powered Hydrogen Production for Off-Site Refueling Stations in Iraqi Cities: A Techno-Economic Analysis,” Diyala Journal of Engineering Sciences, vol. 17, no. 2, pp. 27–51, Jun. 2024, doi: 10.24237/djes.2024.17202.

M. Nasser and H. Hassan, “Techno-enviro-economic analysis of hydrogen production via low and high temperature electrolyzers powered by PV/Wind turbines/Waste heat,” Energy Convers Manag, vol. 278, Feb. 2023, doi: 10.1016/j.enconman.2023.116693.

K. Ram, S. S. Chand, R. Prasad, et al., “Microgrids for green hydrogen production for fuel cell buses – A techno-economic analysis for Fiji,” Energy Convers Manag, vol. 300, Jan. 2024, doi: 10.1016/j.enconman.2023.117928.

M. R. Shaner, H. A. Atwater, N. S. Lewis, and E. W. McFarland, “A comparative technoeconomic analysis of renewable hydrogen production using solar energy,” Energy Environ Sci, vol. 9, no. 7, pp. 2354–2371, Jul. 2016, doi: 10.1039/c5ee02573g.

S. Touili, A. Alami Merrouni, Y. El Hassouani, et al., “Analysis of the yield and production cost of large-scale electrolytic hydrogen from different solar technologies and under several Moroccan climate zones,” Int J Hydrogen Energy, vol. 45, no. 51, pp. 26785–26799, Oct. 2020, doi: 10.1016/j.ijhydene.2020.07.118.

W. Xi, M. Boyd, M. Ruth, and P. Kurup, “Electrolyzers in the system advisor model (SAM): a techno-economic potential study,” 2023, Accessed: Jun. 15, 2025. [Online]. Available: https://www.osti.gov/biblio/1961147




DOI: https://doi.org/10.31284/j.jmesi.2025.v5i2.7796

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Published by:
Mechanical Engineering Department - Institut Teknologi Adhi Tama Surabaya

Editorial Address
Journal of Mechanical Engineering, Science, and Innovation is licensed under CC BY-NC 4.0