[1그룹 2세부/이강남] Economic Analysis on 3.3 MW-class Green Hydrogen Production System in Jeju, South Korea

Abstract

With increasing concerns regarding environmental pollution contributing to'global boiling'worldwide, hydrogen, especially green hydrogen produced by renewable energy sources, has emerged as a key energy solution for future decarbonization. In this study, an economic analysis of a 3.3 MW-class green hydrogen production system was conducted in Haengwon, Jeju, South Korea. The target hydrogen production system comprised three different types of equipment, each with different electrolyzer types, capacities, and performance characteristics. The levelized cost of hydrogen (LCOH) was estimated for each piece of equipment based on the capital expenditure (CAPEX) and operating expenditure (OPEX). This study investigated the contributions of specific components within the CAPEX and OPEX to the total LCOH and analyzed the results across various hydrogen production capacities, electrolyzer types, and power sources used to operate the system. Additionally, a sensitivity analysis was conducted to assess the impact of each component on the LCOH upon electrolysis, with the uncertainty of the study results estimated using a Monte Carlo simulation. The study findings revealed the estimate of the LCOH obtained upon electrolysis in Haengwon, Jeju, to be 10.36$/kg H 2, with electricity costs representing the largest share of LCOH and demonstrating the greatest sensitivity to hydrogen prices.