The benefits of integrating industrial hydrogen production with district heating in Cold Climates with different building renovation levels

Green hydrogen has a significant potential in decarbonizing the energy system, and avoiding deforestation by replacing biomass fuels, meanwhile, implementing waste heat recovery from its production process can boost decarbonization in district heating networks. However, since hydrogen-consuming industries are often distant from district heating networks, waste heat recovery from electrolysis plants may cause additional cost of transferring hydrogen. This contribution investigates this systematic challenge by evaluating the possible benefits of integrating hydrogen production process into district heating networks and considering the additional cost of transferring hydrogen. In addition, this study quantifies the expected national system-level benefits of efficient building renovation strategies and the additional progress that coupling with hydrogen production could bring. Based on the results, while the economic benefits of importing waste heat from electrolysis plants into the district heating networks is relatively small (annually 100 M€, constituting roughly 0.4 % of the Finnish energy system annual costs), this study demonstrates its notable potential to reduce biomass consumption by 7 %. However, the required cost for transporting hydrogen in Finland is projected to be 0.1–0.2 €/kg. Moreover, the results reveal that buildings renovation in two levels of low-renovation and high-renovation can decline biomass consumption in the heating sector by 29 % and 40 %, respectively. •Assessing the potential of electrolyzer waste heat in district heating systems.•Evaluating the side-benefits of green hydrogen in Finland's energy system.•An annual saving of 100 M€ is achievable by waste heat recovery from electrolyzers.•Over 7 % decline in biomass consumption by waste heat recovery from electrolyzers.•29–40 % decline in biomass consumption by energy renovation in buildings.