Techno Economic Assessment of Green Hydrogen Production from Renewable Energy Sources along CPEC Special Economic Zones in Pakistan /

Abstract

Green hydrogen solutions are getting attention in efforts to achieve low-carbon and net-zero emissions targets. In developing countries, natural gas and coal serve as a primary source for hydrogen production, given their accessibility and cost effectiveness. The potential decarbonization of the industrial sector through the utilization of green hydrogen emerges as a promising clean energy solution due to its carbon-free nature, versatility, and ability to provide high-energy-density fuel for energy-intensive processes. In this thesis, a techno-economic analysis has been performed for green hydrogen production using wind and solar energy. The analysis is carried out at nine special economic zones (SEZs) and a free zone at Gwadar Sea Port using the Hybrid Optimisation of Multiple Energy Resources (HOMER) Pro software. The proposed hybrid energy system is designed that meet the required industrial electrical and hydrogen demand of 600 MWh/day and 60 tonnes H2 per day, respectively. A comparative analysis of on grid and off grid systems in all SEZs has been performed. A sensitivity analysis is also performed on different parameters that may influence the levelized cost of hydrogen (LCOH). The study findings indicate that LCOH varies from 3.76 $/kg to 8.18 $/kg for off grid and 1.69 $/kg to 4.19 $/kg for on grid systems which is competitive cost with respect to other countries. The most feasible economic zones for green hydrogen production are found to be Dhabeji and Port Qasim with lowest LCOH of 3.76 $/kg and 3.79 $/kg for off grid, 1.69 $/kg and 1.93 $/kg for grid connected system, respectively. Dhabeji exhibits lowest CO2 emissions per year making itself the most feasible location for green hydrogen production. Grid connected systems are a great opportunity for Pakistan to produce low-cost green hydrogen for industrial decarbonization and country’s economic growth.