Prospects for renewable hydrogen production

Glenk, Gunther ; Reichelstein, Stefan

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Document Type: Working paper
Year of publication: 2017
The title of a journal, publication series: Working Papers
Volume: 3664
Place of publication: Stanford, CA
Publishing house: Stanford Graduate School of Business
ISSN: 1869-0483 , 1869-0491
Publication language: English
Institution: Business School > Stiftungsprofessur für ABWL (Reichelstein 2018-)
Subject: 330 Economics
Abstract: Hydrogen has long been heralded as a potentially critical element in the transition to a low carbon economy. The recent sharp cost declines for renewable energy raise the question whether an economic case can be made to produce hydrogen from renewable power sources through a Power-to-Gas process. We analyze this question from an investor perspective when a renewable power plant is combined with a suitably sized Power-to-Gas facility. Essential to the analysis is that the available capacity can be put to optimal use in real time as electricity prices and intermittent renewable power fluctuate. Calibrating our model to the current environment in both Texas and Germany, we find that renewable hydrogen is already cost competitive in niche applications but not yet for industrial scale supply. This conclusion, however, is projected to change within a decade provided recent market trends continue in the coming years.

Dieser Datensatz wurde nicht während einer Tätigkeit an der Universität Mannheim veröffentlicht, dies ist eine Externe Publikation.

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