Green hydrogen production in SE4, a business case for large-scale green hydrogen in SE4

Sammanfattning: As the greenhouse gas emissions keep on increasing the need for solutions to help reduce emissions across all sectors has never been greater. The European Union has pointed out green hydrogen as a step in increasing the sustainability of the energy sector in Europe. Goals has been set to boost the development of hydrogen technology since the green hydrogen production today is only existing in an insufficient scale and to give indications to other technologies fuelled by hydrogen technology. This report presents an analysis of the feasibility of large-scale green hydrogen production in the southern region of Sweden. The focus has been to give a rough cost estimation of what the production costs would be if the production was in connection with a 1 GW offshore wind farm. Due to the time it would take to establish type of project the costs for the project has been estimated for year 2030. The report specifically gives insight into how the levelized cost of hydrogen is affected by different operating conditions and how the cost is split between the most essential cost components. A combination of a literature review and collecting of data from interviews was used to set up a rough model of the hydrogen production. The model was then used to calculate the LCOH and give indication about the overall production of hydrogen. The results indicated that it is not possible to reach a LCOH as low as the price targets set by actors on the hydrogen market. The most beneficial LCOH was acquired by using a 1000 MW electrolyser and the smallest storage volume, which resulted in a LCOH of about 26 SEK per kilogram of hydrogen. The reason to why it was difficult to reach a hydrogen cost in the vicinity of the price targets was mainly due to high storage costs and high electricity costs. However, it is also concluded that there are many unknowns in the model, which may make it possible to further lower the costs.