Although #greenhydrogen is increasingly seen as a crucial energy carrier in future #zero-carbon energy systems, for a profitable exploitation of #electrolysers still high amounts of #subsidies are required. To what extent will this change in the future? In order to answer that question, one has to analyse the business case of electrolyzers within the context of internationally integrated #electricity and hydrogen markets. Afterall, green hydrogen is a tertiary energy carrier which is produced from the secondary energy carrier electricity. Arjen Veenstra and I have conducted this analysis in our paper which has just been published by @AppliedEnergy.
In this paper, we analyse the profitability of electrolyzers plants in various future circumstances regarding electricity and hydrogen markets and future prices for natural gas and carbon. We find that in the current market circumstances, an investment in a 100 MW electrolyser plant needs almost all its investment costs subsidized in order to become break even, which is in line with current support schemes. The required subsidy declines when the supply of renewable electricity increases strongly as that results in much more hours with low electricity prices. However, when the increase in renewable electricity supply happens together with an increase in the (international) demand for electricity because of, for instance, the #electrification of heating and transport, the subsidy requirement for
electrolysers remains high. After all, electrolysers have to compete with
alternative usages of electricity. This shows that for a profitable exploitation of green hydrogen production, subsidies may be required for a long period of time.
Owner, agro beheermij
3mowhat good is comes fast! how fast is elestor??? ees new start ups how old is new 5 years or 10 years?