Economics of converting renewable power to hydrogen

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DOI:	https://doi.org/10.1038/s41560-019-0326-1
URL:	https://madoc.bib.uni-mannheim.de/48755
URN:	urn:nbn:de:bsz:180-madoc-487555
Document Type:	Article
Year of publication:	2019
The title of a journal, publication series:	Nature Energy
Volume:	4
Issue number:	Febr.
Page range:	216-222
Place of publication:	London
Publishing house:	Nature Publishing Group ; Springer Nature
ISSN:	2058-7546
Publication language:	English
Institution:	Business School > Stiftungsprofessur für ABWL (Reichelstein 2018-)
Subject:	330 Economics 333.7 Natural resources, energy and environment
Abstract:	The recent sharp decline in the cost of renewable energy suggests that the production of hydrogen from renewable power through a power-to-gas process might become more economical. Here we examine this alternative from the perspective of an investor who considers a hybrid energy system that combines renewable power with an efficiently sized power-to-gas facility. The available capacity can be optimized in real time to take advantage of fluctuations in electricity prices and intermittent renewable power generation. We apply our model to the current environment in both Germany and Texas and find that renewable hydrogen is already cost competitive in niche applications (€3.23 kg−1), although not yet for industrial-scale supply. This conclusion, however, is projected to change within a decade (€2.50 kg−1) provided recent market trends continue in the coming years.
Additional information:	Online-Ressource