Viability of hydrogen production on wind farms : techno-economic analysis

Abstract

The aim of this study was to analyze the viability of hydrogen production on wind farms. A Finnish wind farm fleet was used for the study. This viability was analyzed by answering two research questions: whether it is economically viable to produce hydrogen on these wind farms and whether there are any suitable locations for the production location wise. A literature survey acted as a base for the study, in which information on subsidies, hydrogen transportation and hydrogen production were analyzed. Data for the study was received in the form of wind farm electricity production from the years 2021–2023. Additionally, day-ahead electricity price data was provided for the same period.

The analysis was conducted by first scaling the electrolyser capacity by the wind farm capacity utilizing wind farm full load hours, and then by simulating the hydrogen production for 13 wind farms in Excel. The results showed that the cost of hydrogen production was between 3.5–16.9 €/kgH2 for the wind farms in the most optimal cost scenario. This also meant that seven of the analyzed wind farms could produce hydrogen at costs lower than the EU-subsidy limit of 4.5 €/kgH2, but at a higher cost when compared to hydrogen reformed from natural gas (1.7–2.3 €/kgH2). This would mean that the production could be viable cost wise if the subsidies persist. The analysis of production costs and wind farm distances to hydrogen corridors showed Kalajoki Mustilankangas was the closest to the proposed hydrogen corridors and it produced hydrogen at the lowest unit cost due to being the largest of the thirteen analyzed locations. Because of this finding, the study recommended further study into this location.