Techno-economic Assessment of Biomass Gasification for Hydrogen Production and Natural Gas Grid Applications

This study investigates the conversion of residual biomass into hydrogen-rich syngas through thermochemical gasification, assessing its potential for injection into the natural gas grid in alignment with the EU Green Deal and Fit-for-55 goals. Two gasification configurations were evaluated using olive and forestry residues: Configuration A, employing air as the gasifying agent, and Configuration B, using a mixture of steam and oxygen. Both systems integrated gas cleaning and purification units, with additional PSA separation when required. A comprehensive techno-economic model was developed to estimate CAPEX, OPEX, levelized cost of energy (LCOE), and financial indicators (NPV, IRR, and PBP), enabling comparison of hydrogen and syngas injection pathways. Configuration B achieved a higher hydrogen yield (1.3 kg/h) and syngas LHV (13.5 MJ/Nm3), more than double the hydrogen concentration of Configuration A. These findings highlight the technical feasibility and economic potential of biomass-derived hydrogen and syngas for decentralized grid integration, emphasizing the importance of carbon valorization and green financing mechanisms. Configuration B proved the most cost-effective pathway, with IRR values above 10% and PBP below 12.8 years, demonstrating investment attractiveness under supportive financial frameworks.