Feasibility study of green hydrogen to decarbonise New Zealand’s industries

Abstract

Adopting renewable feedstocks is a transformative approach to diminish the reliance on fossil feedstocks such as natural gas and coal in the chemical industry. This research evaluates the potential for Aotearoa-New Zealand, particularly in the North Island, to harness green hydrogen production as a substitute for fossil fuels across industries. The study's scope encompasses examining renewable energy technologies, their capacity factors based on location, types of electrolysers, the conversion process, and the sizing of hydrogen storage reservoirs. An analysis of the levelized cost of hydrogen (LCOH) throughout the value chain in various scenarios has been conducted for the years 2020 to 2040 while considering the country’s resource constraints. The issue is addressed through an optimization-based framework characterized by a multi-period, mixed-integer linear programming (MILP) model. The outcomes demonstrate the capability of integrating all these components within the mathematical framework to yield optimal solutions for transitioning towards a sustainable hydrogen economy.