Jonathan Brandt

Marie Arnold, Jonathan Brandt, Geert Tjarks et al.

Hybrid electrolyzer systems combining alkaline water electrolysis and proton exchange membrane water electrolysis have been investigated in the literature motivated by the expectation that their contrary techno-economic characteristics compensate for the individual technical and economic restrictions of each technology, thereby improving the profitability of green hydrogen production. To reassess the economic potential of hybrid electrolyzer systems beyond these technology-specific assumptions, we independently vary two key characteristics, electrolyzer efficiency and investment cost, in a large-scale sensitivity analysis. For each generated parameter configuration, we performed a techno-economic optimization of a green hydrogen supply chain, including two electrolyzers. The resulting system design, cost objective, and dispatch behavior are subsequently analyzed. Consequently, hybrid electrolyzer systems are identified as optimal if they provide a cost benefit over single electrolyzer systems. The analysis reveals that hybrid electrolyzer systems represent the optimal solution in at most 5.0% of the investigated cases. Furthermore, the maximum cost benefit is 0.057 EUR/kgH2, which corresponds to only about 1% of the total green hydrogen production cost. Additional analyses considering variations in energy purchase prices, storage fees, availability of renewable energy, and baseline electrolyzer efficiency yield negligible changes to these results. Hence, considering that hybrid electrolyzer systems offer marginal cost benefits and prove economically optimal in very few cases, they seem more likely to represent an economic fallacy than a smart strategy.

Jonathan Brandt, Astrid Bensmann, Richard Hanke-Rauschenbach

As energy prices surge for the second time in recent years driven by the ongoing crisis in the Middle East, the European Union's continuing reliance on fossil energy imports is becoming increasingly apparent. However, despite offering an intriguing prospect of improved energy resilience, the ramp-up of local green hydrogen production lags far behind the officially stated ambitions set after the 2022 energy crisis. A prominent reason for the widening implementation gap between announced and realised production projects is overly strict rules on renewable power sourcing, prompting Member states' ministries and the European Commission to propose advancing a planned rules review from 2028 to 2026. To contribute to a successful review and rule adjustments, we address an important gap in understanding the effects of power purchase rules on green hydrogen production. By taking the perspective of European electrolyser operators, we show how the criterion of additionality and its interaction with required temporal correlation can jeopardise the fulfilment of green hydrogen offtake agreements and affect green hydrogen production costs across different European bidding zones. Applying different design paradigms to a green hydrogen production system reveals that electrolyser operator measures, such as PPA and storage upsizing, can help to mitigate the business risks posed by the additionality criterion but come with increased costs. Alternatively, relaxed temporal correlation and increased offtake flexibility both increase production system robustness and reduce production costs simultaneously. Whereby relaxing temporal correlation rules does not result in exceeded emission intensity thresholds, underlining the potential of extended transitional rules to support the ramp-up of European green hydrogen production.