Insights
Cost Optimization and Competitiveness in Green Hydrogen: Critical Factors and Determining Variables
Evaluating the costs associated with producing green hydrogen from renewable energy sources is key to understanding its large-scale viability in today’s energy landscape. In this context, Enertis Applus+ has developed the study “Comparative Cost Analysis of Green Hydrogen Production in Different Locations,” which analyzes the Levelized Cost of Hydrogen (LCOH) at ten international sites with varying solar and wind resource levels, using off-grid electrolyzers powered exclusively by renewable energy sources.
The results show that greater complementarity between solar and wind resources, combined with proper sizing of the storage system, allows for increased electrolyzer operating hours and reduces the final cost of hydrogen. However, the study also highlights that LCOH is strongly influenced by local variables such as CAPEX, OPEX, inflation rates, cost of capital, and other economic factors. Therefore, it emphasizes the importance of tailoring each project to its specific conditions to achieve maximum technical and economic efficiency.