Analysis of the effect of component size and demand pattern on the final price for a green hydrogen production system

Hydrogen emerges as a pivotal energy carrier, shaping the future of the energy landscape. This study explores the potential of utilizing solar energy for green hydrogen production, presenting a promising avenue for low-carbon energy generation. Despite its potential, uncertainties stemming from the intermittent nature of solar energy, demand fluctuations, and economic considerations pose challenges to its widespread adoption. The paper delves into the performance of a power-to-hydrogen system, employing solid oxide electrolyzers to convert electricity from solar arrays into green hydrogen. Two distinct system architectures are proposed: the dedicated configuration, where the owner of the solar array and power-to-hydrogen facilities are the same, and the non-dedicated configuration, where the power-to-hydrogen system purchases solar electricity from the owner of the solar power plant. Simulation results from the case study reveal that the non-dedicated system offers superior economic performance compared to the dedicated system. Considering different hydrogen demand levels and electrolyzer sizes, the levelized cost of hydrogen in the non-dedicated scheme is below 2 $/kg, demonstrating competitive pricing within the realm of renewable technologies. However, solar-assisted green hydrogen faces tough competition with traditional sources of hydrogen production when considering economic aspects. •The effect of component size and demand level on green hydrogen production has been analyzed.•Two scenarios, dedicated and non-dedicated configurations, have been investigated.•The component size has been optimized for various demand levels in both configurations.•Simulation results indicate superior LCOH performance in the non-dedicated configuration.•Solar hydrogen production faces tough competition from conventional technologies in final pricing.