Abstract
•Profitability analysis of green hydrogen production from biogas.•Prices could be competitive versus electrolysis hydrogen production.•Subsidies could boost the hydrogen market in the short-medium term.•Costs reduction strategies are envisaged.
Hydrogen is not only considered as a cornerstone within renewable energy portfolio but it is also a key enabler for CO2 valorisation being a central resource for industrial decarbonization. This work evaluates the profitability of hydrogen production via combined biogas reforming and water–gas shift reaction, based on a real case scenario for landfill biogas plant in Seville (Spain). A techno-economic model was developed based on a process model and the discounted cash-flow method. A biogas flow of 700 m3/h (input given by the landfill biogas plant) was used as plant size and the analysis was carried out for two different cases: (1) use of already available energy sources at the industrial plant, and (2) solar energy generation to power the process. The economic outputs obtained showed that under the current circumstances, this hydrogen production route is not profitable. The main reason is the relatively low current hydrogen prices which comes from fossil fuels. A revenues analysis indicates that hydrogen from biogas selling prices between 2.9 and 5.7 €/kg would be needed to reach profitability, which are considerably higher than the current hydrogen cost (1.7 €/kg). A subsidy scheme is suggested to improve the competitiveness of this hydrogen production process in the short-medium term. A cost analysis is also performed, revealing that electricity prices and investment costs have a high impact on the total share (23–40% and 8–22%, respectively). Other potential costs reduction such as catalyst, labour and manteinance & overhead are also evaluated, showing that cutting-down production costs is mandatory to unlock the potential of hydrogen generation from biogas. Our work showcases the techno-economic challenge that green energy policies face in the path toward sustainable societies.