Economic and Environmental Competitiveness of Multiple Hydrogen Production Pathways in China

Abstract This study quantifies the levelized cost of hydrogen (LCOH) and life cycle carbon emissions (LCCE) of four hydrogen production systems via water electrolysis in 31 provinces and regions of China through the optimization method, and compares with hydrogen production via coal, natural gas, and industry by-products. The results show that the grid-connected hydrogen production system via water electrolysis, which has low-carbon advantages only in specific provinces, and time-of-use electricity prices can improve its economic competitiveness. The off-grid hydrogen production system via water electrolysis can achieve near-zero carbon emissions, although significant investment is brought by configuring larger capacities for electricity energy storage and hydrogen storage tank. In 2045–2050, it will become the most economical pathway to produce hydrogen, certain carbon reduction incentives or production subsidy may enable this to happen 5–15 years earlier. Before then, hydrogen production via industry by-products is a good alternative for the development of hydrogen energy.