Techno-economic assessment of hydrogen as an alternative fuel to natural gas in industrial gas turbines for power generation: a case study of the Ibom power plant

This study investigates the techno-economic feasibility of utilizing hydrogen as a substitute for natural gas in an industrial gas turbine power plant, using the GE Frame 9E unit of the Ibom Power Station, Nigeria, as a case study. Engine performance simulations were conducted using GasTurb 11 software to evaluate key performance parameters under natural gas and hydrogen fueling conditions. A discounted cash flow-based economic model was developed to assess the financial viability of both fuel options over a 20-year plant lifecycle, employing indicators such as Net Present Value (NPV) and Internal Rate of Return (IRR). Results indicate that hydrogen operation yields a marginally higher thermal efficiency and lower heat rate compared to natural gas due to hydrogen’s higher heating value. However, economic analysis reveals that, despite performance improvements, hydrogen-fueled operation demonstrates not to be economically viable under current cost assumptions. The natural gas–fired engine achieved a NPV of approximately $99.5 million and an IRR of 17.4 %, whereas the hydrogen-fired engine produced a negative NPV of approximately –$358.1 million, largely driven by the high cost of hydrogen fuel. The findings demonstrate that while hydrogen offers environmental and performance benefits, significant reductions in hydrogen fuel costs or strong policy incentives are required before it can compete economically with natural gas for industrial gas turbine power generation.