[ software demonstration ] the sensitivity of various key performance indicators ( KPIs ). Figure 7 shows the variation in the levelized cost of hydrogen ( LCOH ) when assessing wind farm capacities between 350 MW and 600 MW . with a production capacity of 400 tons per day . This new system meets the ammonia production requirement and provides an LCOA of only € 0.97 / kg . In the next section , these results and an extended analysis are presented .
By optimizing solely for LCOH , the determined optimal wind farm nominal power is 434 MW . This preliminary configuration results in an LCOH of € 4.08 / kg and an LCOA of € 1.19 / kg .
It is worth noting that the analysis showed that the wind farm capacity that minimizes the LCOH does not match the capacity that minimizes the LCOA . This discrepancy arises due to the significant influence of the production limit of the assets on these variables . However , the complete project optimization requires further iterations , where other variables must also be optimized . After running optimization simulations for the electrolyzer ’ s nominal power , performing a second iteration of the wind farm capacity , and adjusting the ammonia production capacity , a substantial overall improvement was achieved .
The optimal configuration for the main components considered a 324-MW wind farm , a 250-MW electrolyzer , and a Haber-Bosch reactor
LCOH ( EUR / kg )
Wind Farm Electrolyzer & Compressor Storage
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0 350 392 433 475 517 558 600
Scaling factor
Fig . 7 . LCOH variation as a function of the wind farm size
Results and business analysis
The output of the simulation in the Southern Lights Platform includes the complete hourly system operation over the entire defined lifecycle of the project ( 25 years ). The software generates numerous charts and tables , presenting grouped data and various KPIs . Table 2 presents some key project parameters and the main cost results for the optimal configuration .
As part of the simulation result , the determined LCOH is € 4.22 / kg , slightly higher than the original configuration . However , the LCOA decreased to € 970 / ton .
For a complete view of the project ’ s technoeconomic results , access the report provided by the Southern Lights Platform here .
Business performance As mentioned at the beginning of the article , the business model includes selling the produced ammonia to international off-takers , such as Japan or the European Union . Additionally , surplus hydrogen production will be sold locally to the gas company for blending applications . The selling price has been set at € 1,300 / ton for ammonia and € 2 / kg for hydrogen .
Table 2 . CAPEX and OPEX and composition |
Item |
Value |
CAPEX – Hydrogen Plant ( M €) |
260 |
CAPEX – Compressor ( M €) |
0.042 |
CAPEX – Storage ( M €) |
54 |
CAPEX – Ammonia Plant ( M €) |
58.4 |
CAPEX – Total ( M €) |
372 |
OPEX ( M €/ year ) 79
Note : The data presented in the table refers to a project with a wind farm nominal power of 324 MW , an electrolyzer nominal power of 250 MW , and an ammonia production capacity of 400 tons per day .
Hydrogen Tech World | Issue 19 | December 2024 37