Maximizing Value in Power-to-Hydrogen Plants Within Eco-Industrial Clusters Through Internal Heat Market

One of the most promising solutions for reaching carbon-neutral industrial clusters with a high penetration of renewables is using hydrogen as a versatile fuel source. However, green hydrogen production is still a controversial topic. In fact, power-to-hydrogen (P2H) plants cannot be economically operated for most hours without supportive programs because of high marginal costs. In this situation, it is crucial to provide additional value streams for these plants to justify their economic operation. This paper investigates the cost-effectiveness of P2H plants selling by-products alongside their primary output through the establishment of an internal heat market within eco-industrial clusters. To fulfill this aim, a mathematical optimization problem formulated by bi-level programming is considered for the optimal operation of P2H plants. Engaging in this internal market holds the potential to boost revenue for P2H plant owners as they sell by-products to cluster members in need. Furthermore, other industries within the cluster stand to gain from accessing energy carriers at a reduced cost. A real eco-industrial cluster named GreenLab Skive, located in Denmark is used to examine the effectiveness of the proposed method. The findings indicate that the potential sale of by-products by P2H plants could rationalize extended operational hours without the need for supportive schemes. Consequently, there is an escalation in the production of green hydrogen. Nonetheless, the primary barrier to the economically viable operation of P2H plants remains the cost of electricity, which surpasses that of hydrogen in most hours.

I. Introduction

The mitigation of global warming and the achievement of a carbon-neutral economy in Europe by 2050, as outlined by the Paris Agreement [1] and the European Green Deal [2], have intensified the energy transition towards sectors that are hard to abate, including industrial sectors. With the increased integration of renewable energy sources within these clusters, CO2 emissions have been significantly reduced. However, achieving a level of zero carbon emissions necessitates further effort. One of the most promising solutions to address this challenge involves converting power into a more storable and versatile energy carrier, such as green hydrogen [3]. Nevertheless, the production of green hydrogen through water electrolysis is considered costly due to its higher marginal costs [4]. Therefore, it is essential to explore methods to lower these costs by providing power to hydrogen (P2H) plants with additional value streams.