• Transactions of the Korean hydrogen and new energy society
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• v.31 no.4
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• pp.337-344
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• 2020

Worldwide, there is a significant surge in the efforts for addressing the issue of global warming; the use of renewable energy is one of the solutions proposed to mitigate global warming. However, severe volatility is a critical disadvantage, and thus, power-to-gas technology is considered one of best solutions for energy storage. Hydrogen is a popular candidate from the perspective of both environment and economics. Accordingly, a hydrogen production system based on renewable energy sources is developed, and the economics of the system are assessed. The result of the base case shows that the unit cost of hydrogen production would be 6,415 won/kg H₂, with a hydrogen production plant based on a 100 MW akaline electrolyzer and 25% operation rate, considering renewable energy sources with no electricity cost payment. Sensitivity study results show that the range of hydrogen unit cost efficiency can be 2,293 to 6,984 Won/kg H₂, depending on the efficiency and unit cost of the electrolyzer. In case of electrolyzer operation rate and electricity unit cost, sensitivity study results show that hydrogen unit cost is in the range 934-26,180 won/kg H₂.