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The Role of Low-Carbon Hydrogen in Optimising Hydrogen Production Costs and Electrolysis Plant Design

S. Serna, T. Gerres, R. Cossent

34th European Conference on Operational Research - EURO 2025, Leeds (United Kingdom). 22-25 June 2025


Summary:

Renewable hydrogen has gained significant attention in European regulations as a key element in decarbonising sectors where electrification is challenging. Several studies have analysed the production cost of RFNBO (Renewable Fuel of Non-Biological Origin) hydrogen and the impact of strict production conditions, particularly the temporal correlation between renewable electricity generation and electrolyser consumption (Delegated Act 2023/1184).
In contrast, the role of electrolytic low-carbon hydrogen as defined in of Directive (EU) 2024/1788, has received less attention. This Directive allows low-carbon hydrogen production using grid electricity, provided it meets emission reduction targets relative to a fossil fuel benchmark.
Integrating RFNBO and low-carbon hydrogen offers investment and operational advantages. It minimizes inefficient start-stop cycles, increases annual operating hours, and reduces investment impact by spreading the costs over a greater output.
However, the production of low-carbon hydrogen is uncertain as it depends on the emission intensity of the grid. This introduces challenges in designing a system that ensures reliable hydrogen supply while complying with regulatory constraints. This paper explores the role of low-carbon hydrogen in reducing production costs and its impact on plant design. We developed an optimisation model that integrates investment decisions with operational planning under different grid-electricity emission profiles scenarios.


Spanish layman's summary:

El hidrógeno es clave para la descarbonización de sectores difíciles de electrificar. Este estudio analiza el rol del hidrógeno hipocarbónico o bajo en emisiones en el diseño óptimo de una planta. Se desarrolla un modelo de optimización para evaluar decisiones operativas e inversivas.


English layman's summary:

Hydrogen is key to the decarbonization of hard-to-electrify sectors. This study analyzes the role of low-carbon hydrogen in the optimal design of a plant. An optimization model is developed to assess operational and investment decisions.


Keywords: low carbon hydrogen, optimization, plant design, techno-economic analysis, LCOH


Publication date: 22-Jun-2025.


Citation:
S. Serna, T. Gerres, R. Cossent, "The Role of Low-Carbon Hydrogen in Optimising Hydrogen Production Costs and Electrolysis Plant Design", presented at 34th European Conference on Operational Research - EURO 2025, Leeds, United Kingdom, 22-25 June 2025

    Research topics:
  • Renewable energy integration
  • Modeling of industrial processes and decarbonization technologies
  • Techno-economic assessment of decarbonization technologies
    Research groups:
  • Instituto de Investigación Tecnológica (IIT)
    ODS:
  • Goal 7: Affordable and clean energy
  • Goal 9: Industry, innovation and infrastructure
  • Goal 12: Responsible consumption and production
  • Goal 13: Climate action

IIT-25-075C_abstract

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