EURO 2025 Leeds
Abstract Submission

1592. The Role of Low-Carbon Hydrogen in Optimising Hydrogen Production Costs and Electrolysis Plant Design

Invited abstract in session MA-46: Hydrogen Production Planning and Operation, stream Energy Economics & Management.

Monday, 8:30-10:00
Room: Newlyn 1.07

Authors (first author is the speaker)

1. Santiago Serna
Energy Regulation, Universidad Pontificia Comillas
2. Timo Gerres
IIT, Universidad Pontificia Comillas
3. Rafael Cossent

Abstract

Renewable hydrogen has gained significant attention in European regulations as a key element in decarbonising sectors where electrification is challenging. Several studies have analysed the production cost of RFNBO (Renewable Fuel of Non-Biological Origin) hydrogen and the impact of strict production conditions, particularly the temporal correlation between renewable electricity generation and electrolyser consumption (Delegated Act 2023/1184).
In contrast, the role of electrolytic low-carbon hydrogen, as defined in the Directive EU 2024/1788, has received less attention. This Directive allows low-carbon hydrogen production using grid electricity, provided it meets emission reduction targets relative to a fossil fuel benchmark.
Integrating RFNBO and low-carbon hydrogen offers investment and operational advantages. It minimizes inefficient start-stop cycles, increases annual operating hours, and reduces investment impact by spreading the costs over a greater output.
However, the production of low-carbon hydrogen is uncertain as it depends on the emission intensity of the grid. This presents challenges in designing a system that ensures a reliable hydrogen supply while meeting regulatory constraints. This paper examines the role of low-carbon hydrogen in reducing production costs and its implications for plant design. We developed an optimisation model integrating investment decisions with operational planning under different grid-electricity emission profile scenarios.

Keywords

Status: accepted

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