Green hydrogen from offshore wind in southern Sweden : Case study on 500MW offshore wind farm

Abstract: Variable renewable energy and green hydrogen demand is expected to increase within the European union in attempts to mitigate climate change. A high penetration of variable renewable energy can result in volatile power prices affecting the profitability of such actors. At the same time southern Sweden suffers from high power prices and could benefit from additional generation. If offshore wind power is used for hydrogen production during low price hours and sold to the market during high price hours, it may be beneficial to invest in electrolysis. This thesis investigates the profitability and conditions of green hydrogen production in the south of Sweden, together with social and economic benefits that comes with it. A model consisting of electrolysis powered directly from an offshore wind farm is analyzed for maximum profit. A linear optimization program is used to investigate the optimal setup of installed electrolysis together with 500MW offshore wind power, subjected to investment costs, market limitations and constraints. Results show that investing in electrolysis according to hydrogen demand and price can increase the overall profitability, while at the same time keeping the production cost of green hydrogen at similar levels as hydrogen produced from natural gas.