Risk-conscious asset sizing and energy procurement planning for an electrolytic hydrogen producer
Résumé
In the context of low-carbon/green hydrogen production by electrolysis for industry or transportation, the level of local renewable electricity production may not always be sufficient, requiring additional electricity procurement from the grid. This exposes the hydrogen production costs to highly variable spot market prices – a risk which hydrogen producers are likely to address by procuring electricity in advance using electricity futures. This paper seeks to examine the effect of risk on optimal energy procurement and equipment sizing strategies for a hydrogen producer supplying an industrial client, using an electrolyzer, hydrogen storage, and solar self-production. A 2-stage stochastic linear program is proposed, along with a set of planning methods, which are then compared in the context of uncertainty in electricity prices, renewable production, and hydrogen demand.