Techno-economic feasibility and energy management strategies for offshore wind-to-hydrogen projects

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Date
2025
Authors
Mosadeghi, Hadi
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University College Cork
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Abstract
The integration of offshore wind energy with green hydrogen production offers a promising solution for achieving deep decarbonisation across various sectors, particularly in regions with substantial wind resources like Ireland. This thesis investigates both the technical and economic aspects of large-scale offshore wind-to-hydrogen systems using two complementary analyses: a detailed evaluation of subsystem performance in a hydrogen production plant and an economic feasibility study for scaling up such systems under different market conditions. The technical analysis (Chapter 3) focuses on subsystem performance within a 6 MW electrolyser plant, which is powered by a 60 MW offshore wind farm. The subsystems and Balance of Plant (BoP) considered include compressors, rectifiers, transformers, water purifiers, gas separators, dryers, and cooling systems. Using a one-year wind power time series, the study reveals that these subsystems collectively account for approximately 25% of the total energy consumption, significantly affecting the overall efficiency of the hydrogen production process. Among these, the electrical treatment subsystem, comprising transformers and rectifiers, was identified as the main source of energy losses, contributing 3.9% to the plant’s total energy input. Furthermore, operational constraints within these subsystems result in the electrolyser stacks being inactive for 11.8% to 15.9% of the time due to insufficient power from the offshore wind farm. These findings highlight the importance of optimising electrical subsystems and BoP components to enhance overall system performance and minimise energy losses. The techno-economic assessment (Chapter 4) expands on this technical foundation by evaluating the financial feasibility of a larger 600 MW offshore wind farm located in the Irish Sea, using a case study approach. The analysis compares the performance and cost- effectiveness of the two most mature electrolyser technologies, Alkaline and Proton Exchange Membrane (PEM), under varying electricity prices, hydrogen market demand, and system configurations. Key financial metrics such as Levelized Cost of Hydrogen (LCOH), Net Present Value (NPV), and Internal Rate of Return (IRR) are used to assess the economic viability of each configuration. Results show that PEM electrolysers, although having a higher initial capital expenditure, offer greater flexibility and more favourable revenue streams under scenarios with lower hydrogen market prices. Alkaline electrolysers, by contrast, are more suitable for stable market conditions due to their lower capital costs and simpler design. Sensitivity analysis further emphasises that the LCOH is highly sensitive to fluctuations in electricity prices and hydrogen demand, indicating that these factors must be carefully evaluated when making investment decisions. Optimal sizing of electrolyser systems is also explored, demonstrating that appropriately scaling the system based on anticipated market dynamics is crucial for maximising profitability and minimising operational risks. By integrating the findings from these technical and economic analyses, the thesis provides a comprehensive understanding of the critical factors that influence the efficiency and financial feasibility of offshore wind-to-hydrogen systems. The results offer strategic guidance for optimising subsystem performance, selecting the most suitable electrolyser technologies, and developing scalable system configurations that can adapt to varying market conditions. This research contributes to the broader development of green hydrogen infrastructure, supporting the strategic planning and implementation of similar projects in Ireland and other regions seeking to leverage offshore wind resources for sustainable hydrogen production.
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Keywords
Renewable hydrogen , Electrolyzer technology selection & optimal electrolyzer size , Hydrogen techno-economic modeling , Hydrogen market , Levelized Cost , Hydrogen plant design , Balance of plant & electrolyzer subsystems , Offshore wind to hydrogen
Citation
Mosadeghi, H. 2025. Techno-economic feasibility and energy management strategies for offshore wind-to-hydrogen projects. MRes Thesis, University College Cork.
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