A socio-economic perspective on green hydrogen as a sustainable operations strategy

Hydrogen serves as an energy carrier with the potential to enable sustainable and flexible energy systems. However, achieving true decarbonization requires the use of renewable energy sources and responsible water management.

In a study published in the KeAi journal Sustainable Operations and Computers, a team of researchers conducted a socio-economic analysis of hydrogen production from an integrated wind and electrolysis plant in southern Italy.

The study estimated a Levelized Cost of Hydrogen (LCOH) of €3.60/kg for a 30 MW wind and 18.5 MW electrolysis plant, capable of producing 1,776,000 kg of hydrogen in its first year. Sensitivity analyses indicated that LCOH could range from €2.81 to €4.48/kg, influenced significantly by inflation and capacity factors. For instance, a capacity reduction from 35% to 25% would increase the LCOH to €5.25/kg.

An online public survey revealed that 72.5% of Italians are unaware of the differences between green and grey hydrogen, with knowledge peaking among men over 35. Willingness to pay (WTP) for green hydrogen stood at approximately 10%, with the highest acceptance found among women aged 18-24. Public acceptance of wind power installations reflected a WTP of 8.7%. The study further highlighted that 68.6% of LCOH values cluster between 3.20 and 4.00 €/kg at a 35% capacity factor, emphasizing the need for public education and engagement to enhance acceptance.

While green hydrogen demonstrates substantial economic potential, addressing public knowledge gaps and societal resistance is crucial for large-scale adoption. The study calls for strategic spatial energy planning to facilitate successful implementation.

###

Contact the author: Idiano D'Adamo, Department of Computer, Control and Management Engineering, Sapienza University of Rome, Rome, Italy.

The publisher KeAi was established by Elsevier and China Science Publishing & Media Ltd to unfold quality research globally. In 2013, our focus shifted to open access publishing. We now proudly publish more than 190 world-class, open access, English language journals, spanning all scientific disciplines. Many of these are titles we publish in partnership with prestigious societies and academic institutions, such as the National Natural Science Foundation of China (NSFC).