Development of electrolysis technologies for hydrogen production: A case study of green steel manufacturing in the Russian Federation

The article reviews a list of solutions to reduce the carbon intensity of the Russian fuel and energy complex. The technological scheme of green hydrogen production that is the most optimal for the Russian Federation has been determined. It is shown that by 2040, the net present value of hydrogen production units by the alkaline electrolysis method will amount to US $ 35 thousand/ kW while the cost of plants with a solid polymer or a solid-oxide electrolyzer will be at US$30 thousand/ kW and US $ 26 thousand/ kW accordingly. This paper presents a feasibility study of green hydrogen production from wind-powered electrolysis with further direct reduction of iron ore for green steel manufacturing. According to the analysis, the difference in cash flows between standard steelmaking technology and direct reduction of iron ore with hydrogen is 20% which in the long term could be reduced to 5%. Compared to the European Carbon Border Adjustment Mechanism, companies will be able to save about 3% of the present value. To achieve the commercial attractiveness of hydrogen production by electrolysis, the minimum amount of government subsidies should be at least 10% of capital expenditures from 2021 with a gradual increase to 20% by 2040 to support the emerging market. [Display omitted] •The difference in cash flows between standard steelmaking technology and direct reduction of iron ore with hydrogen is 20%.•Economic model for the development of electrolysis technologies in Russia.•Forecast of reduction in the cost of electrolysis technologies.•The technological scheme of green steel manufacturing has been determined.