MOSTAFA REZAI, ALEXANDR AKIMOV AND EVAN GRAY |
The transition to a low-carbon future demands urgent acceleration in renewable hydrogen production, a critical pathway to decarbonisation. Offshore wind energy (OSW) stands out as a promising resource due to its vast potential and high-capacity factors. However, the high costs and technical challenges associated with OSW have hampered its development compared to other renewable sources. A recent study delves into the techno-economic feasibility of using OSW for dynamic hydrogen production, focusing on Australia’s offshore wind capacity under “slow progress” and “fast progress” scenarios.
Harnessing offshore wind for hydrogen production
Offshore wind energy offers a unique advantage in renewable hydrogen production, leveraging consistent wind speeds and massive potential. However, this study identifies critical challenges, such as significant energy losses from wake effects, air density variations, and turbine inefficiencies. To ensure realistic projections, the research incorporates these factors alongside economic modelling, which considers costs for turbines, foundations, submarine cables, and substations.
Dynamic hydrogen production is explored using proton-exchange membrane (PEM) electrolysis, which operates under variable power input. Our recent study demonstrates how aligning wind energy output with PEM’s operational efficiency can reduce energy consumption, especially for GW-scale projects. For instance, we found a 5 kWh/kg difference in energy consumption between two wind locations, driven by variations in hourly wind power distribution.
To contextualise these findings, insights can be drawn from successful offshore hydrogen system projects in Asia. For example, Japan’s Fukushima Hydrogen Energy Research Field (FH2R) and South Korea’s Ulsan offshore hydrogen initiatives demonstrate the feasibility of integrating offshore wind with large-scale hydrogen production. These projects underscore the importance of aligning policy support with technological advancements to overcome initial financial and technical barriers, offering valuable lessons for similar developments in Australia.
Key findings
- Cost-Competitive Hydrogen Production: The study highlights the importance of rapid scaling and policy support to achieve a levelised cost of hydrogen (LCOH) below AUD 3/kg by 2040 in offshore locations.
- Efficiency Optimisation: Effective energy management strategies, such as leveraging low-cost electricity during surplus periods and optimising electrolysis efficiency during peak electricity prices, are critical.
- Overcoming High Costs: The high levelised cost of energy (LCOE) from offshore wind can be offset by the high wind capacity factors available in Australian locations.
- Economic Levers: Slight improvements in the weighted average cost of capital (WACC) can further lower LCOH, making offshore wind-based hydrogen more competitive.
Pathways for future research
The findings point to the need for further analysis of the trade-offs between producing hydrogen offshore versus transmitting electricity to onshore facilities. Understanding these dynamics will help determine whether co-locating hydrogen production with offshore wind plants is financially advantageous.
Conclusion
Offshore wind-based hydrogen production has the potential to be a game-changer for renewable energy, particularly in regions like Australia, where abundant wind resources can offset high infrastructure costs. However, achieving cost-competitive hydrogen production requires robust policies, technological innovation, and large-scale investment. As the world works toward net-zero emissions, offshore wind and hydrogen production could become integral pillars of a sustainable energy future.
This study underscores the importance of integrating technical insights with economic strategies to unlock the potential of offshore wind for renewable hydrogen, bringing us closer to the global climate goals of 2050.
Mostafa Rezai and Ewan Gray are members of the Queensland Micro- and Nanotechnology Centre, Griffith University and Associate Professor Alexandr Akimov is a member of the Sustainable Energy Policy Cluster and Griffith Asia Institute.
This article is a synopsis of a journal article “Techno-economics of offshore wind-based dynamic hydrogen production” published in Applied Energy, volume 374.