PAPER ABSTRACT

Objective of the Paper:	To create a worksheet to compute the cost of the carbon free generation of hydrogen fuel at a model wind electric powered electrolyzer plant using different independent variable values.
Approach:	Paper presents a first generation worksheet that computes the levelized cost of hydrogen fuel generated at a 1 MW rated model wind electric powered electrolyzer plant. The paper assumes that the wind electricity comes from a utility sized (>100 MW) wind plant. The paper discusses the technical, financial and economic principles underlying the levelized cost method of computing the cost of hydrogen fuel generated at the model electrolyzer plant. Topics include a review of the conventional methods of generating industrial hydrogen, carbon free hydrogen generation, the cost of wind electricity, capacity parameters for electrolyzer plants, the capital cost of a hydrogen electrolyzer, electrolyzer efficiency, levelized cost method, depreciation, fixed and variable operating and maintenance costs.
Scientific Innovation and Relevance:	This paper includes the worksheet, "Levelized Cost Worksheet for a Model  1 MW Rated Wind Electric Powered Hydrogen Electrolyzer Plant". Its benchmark input values are for two model plants; one located in the US and one in Spain. The goal of the "Hydrogen Economy" is an energy system that will reduce the carbon emissions of the industrial countries. In order to reduce carbon emissions, it requires a cost effective non-carbon emitting source of hydrogen fuel. Current industrial hydrogen generation technologies, while almost cost effective, will not reduce carbon emissions, because they emit carbon as a by-product of hydrogen generation. The reader can use the worksheet to do his/her own computation of the cost of hydrogen fuel.