Tackling the Cost Barrier to Green Hydrogen Expansion
Key Ideas
- Green hydrogen is seen as a promising zero-emission alternative for heavy industries to reduce carbon footprint.
- Worley, through various measures, is working to reduce the levelized cost of hydrogen (LCOH) by addressing both capital and operating expenditures.
- Efforts include developing productized hydrogen solutions, building partnerships with technology providers, and creating a prototype digital platform for optimized energy consumption.
- Standardization, modularization, and scale-up effects are key strategies to drive down costs and make green hydrogen production economically viable.
Green hydrogen is gaining attention as a zero-emission alternative for decarbonizing industries, but the high levelized cost of hydrogen (LCOH) remains a significant barrier. Worley's Green Hydrogen Centre of Excellence is actively working on solutions to tackle this issue. The production costs of green hydrogen are mainly attributed to capital expenditure (Capex) and operating expenditure (Opex), with the latter accounting for 70% of the LCOH due to energy requirements for electrolysis. Worley is focusing on developing cost-effective hydrogen solutions, starting with smaller plants and gradually scaling up to larger projects to reduce LCOH. Standardization, modularization, and forming partnerships with technology providers are key strategies to lower costs throughout the supply chain. Moreover, a prototype Asset Optimization Centre (AOC) is being developed to optimize energy consumption and reduce Opex costs. By implementing these measures, Worley aims to make green hydrogen production economically viable and drive the transition towards sustainable energy solutions.
Topics
Power
Renewable Energy
Technology
Innovation
Sustainability
Energy Transition
Decarbonisation
Engineering
Industrial
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