Problem

The production of hydrogen through solar thermal energy and electrolysis is an attractive prospect due to its potential as a clean and renewable energy source. However, the economic and technical feasibility of this process needs to be investigated further. This study aims to explore the viability of two types of electrolysis: alkaline and Proton Exchange Membrane (PEM), using a 50 MWe Concentrated Solar Power (CSP) plant with five 2 MWe electrolyzers for hydrogen production.

Upon conducting a comprehensive examination, it was found that the base scenario where all electricity produced by the CSP plant is used for hydrogen production was economically unviable due to high initial investment costs and unfavorable cash flow dynamics. Therefore, an alternative scenario needed to be explored.

Learn more about our investigation here.

Solution

An alternative scenario was proposed where only 20% of the electricity produced by the CSP plant would be utilized for hydrogen production, while the remaining 80% would be sold directly to the grid. The net present value (NPV) of this scenario was recalculated to be 10,834,574.66 EUR, with an internal rate of return (IRR) of 11.65%, indicating a profitable project.

The scientific investigation culminated in the conceptual design of a continuous hydrogen production process in line with ISO 10628 standards. The process involves converting solar radiation and water into hydrogen, oxygen, and electricity using molten salts as the primary input.

Impact

Recalculated NPV of 10,834,574.66 EUR
IRR of 11.65%

"This study affirms the economic feasibility of CSP-based hydrogen production, provided a substantial portion of the electricity is sold directly to the grid, while simultaneously acknowledging the current cost impediments of CSP and electrolysis technologies which render them non-competitive with traditional fossil fuel-based production methods."

Team

Team Member #1 - Chemical Engineer
- Analyzed data from experiments and simulations to determine economic viability
- Developed conceptual design for continuous hydrogen production process
Team Member #2 - Electrical Engineer
- Designed and analyzed electrical systems for CSP plant and electrolyzers
- Determined optimal electricity allocation between hydrogen production and grid sale

CSP-Based Hydrogen Production Proves Profitable