Cost optimization for hydrogen integration in energy portfolio based on water-energy and hydrogen nexus in economic zones; case study: Chabahar free zone

This research aims to develop an integrated model to determine how to integrate hydrogen into Chabahar's energy portfolio at the lowest cost. To achieve the lowest cost in the Chabahar Free Zone, an optimization model was developed using the water, energy, and hydrogen nexus approach. The net present value is one of the criterions used in this study for assessing the economic feasibility of the project, and its objective function is to maximize it. Furthermore, the decision-making variables are each technology's capacity. The base case is examined first, followed by two scenarios of government support for renewable energy and export opportunities. In the base case, 36,000 m
³
are desalinated per day, 12,000 m
³
are produced per day from wastewater treatment, and 80,000 kg of hydrogen are produced per year. Also, the net present value, in this case, is $5.9×10
¹²
. The model does not use the capacity of renewable energy in the base state, but in the first and second scenarios, the model will go towards the selection of renewable technologies and the use of renewable energy will be economically justified, approximately 499 MWh and 500 MWh of solar energy respectively, and 0.5 MWh of wave energy were used. The amount of hydrogen production in the first and second scenario will increase by 30 and 38 percent, respectively. The found results can support policy makers to tackle the problems of water and energy crisis, hydrogen generation, and security problem regarding electricity resources. In this study, the hydrogen nexus is outlined in light of a sustainable energy future centered on hydrogen as a possible alternative to today's carbon economy.