Green hydrogen and wind synergy: Assessing economic benefits and optimal operational strategies
Nima Javanshir, Simo Pekkinen, Annukka Santasalo-Aarnio, Sanna Syri
Abstract
Volatile electricity prices have raised concerns about the economic feasibility of wind projects in Finland. This study assesses the economic viability and optimal operational strategies for integrating wind-powered green hydrogen production systems. Utilizing modeling and optimization, this research evaluates various wind farms in Western Finland over electricity market scenarios from 2019 to 2022, with forecasts extending to 2030. Key economic metrics considered include internal rate of return, future value, net present value (NPV), and the levelized cost of hydrogen (LCOH). Results indicate that integration of hydrogen production with wind farms shows economic benefits over standalone wind projects, potentially reducing LCOH to €2.0/kgH 2 by 2030 in regular and low electricity price scenarios, and to as low as €0.6/kgH 2 in high-price scenarios. The wind farm with the highest capacity factor achieves 47% reductions in LCOH and 22% increases in NPV, underscoring the importance of strategic site selection and operational flexibility. • Volatility of electricity prices raises viability concerns for wind producers. • Examining the optimal operation and economic feasibility of wind-hydrogen systems. • Evaluated wind farms in Western Finland from 2019 to 2022, with a 2030 outlook. • Integration with hydrogen production enhances financial resilience and adaptability. • Strategic site selection and adaptive PEMEC operational plans found crucial.