Green hydrogen holds significant potential for ensuring a sustainable energy transition. Italy is advancing its green hydrogen strategy to align with European efforts to expand green hydrogen production. However, for an effective energy transition, the feasibility of green hydrogen needs to be evaluated through techno‐economic assessments backed by real‐world data. To estimate the levelized cost of hydrogen (LCOH), the study performs a techno‐economic assessment in which a proton exchange membrane (PEM) electrolyzer is assumed to be coupled with an operational wind farm in Casalduni in the Campania region of Italy. The proposed methodology is based on three approaches for calculating the LCOH. The first two approaches employ statistical and time‐dependent modeling based on an off‐grid configuration. The analysis is further complemented by a sensitivity analysis in which various parameters are varied to assess their impact on the LCOH. The analysis yields LCOH values ranging from 3.60 to 3.79 €/kg. Similarly, the electrolyzer efficiency analysis indicates that increasing the efficiency to 80% could reduce the LCOH to 2.75 €/kg. The third approach employs HOMER Pro to address wind intermittency and maintain a consistent hydrogen supply through a co‐located grid‐backup configuration, while also considering the European Union's criteria for renewable fuels of nonbiological origin. The LCOH for this approach ranges from 2.77 to 8.53 €/kg, depending on grid reliance and electricity prices. The study provides insights into the economic viability of green hydrogen projects and contributes to strategic planning for Italy's long‐term energy transition.
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Khan et al. (2026) studied this question.
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