Evaluating cost and emission reduction potentials with stochastic PPA portfolio optimization for green hydrogen production in a decarbonized glassworks

Energy Conversion and Management X, vol. 28, pp. 101251

Abstract

The decarbonization of heavy industries demands large volumes of green hydrogen. To produce green hydrogen via electrolysis, the EU’s Renewable Energy Directive II imposes rules to ensure the use of renewable electricity. Hydrogen producers can use portfolios of power purchase agreements (PPAs) to buy renewable electricity. These portfolios must meet hydrogen demand cost-effectively, and battery storage can help by shifting excess renewable generation. However, high uncertainty around future electricity prices and demand complicates optimal portfolio design. Current literature lacks comprehensive models that evaluate such portfolio optimization under uncertainty for real-world case studies including battery storage. This work addresses the gap by introducing a stochastic mixed-integer linear programming model tailored to industrial applications. We demonstrate the model using a real-world glass manufacturing site in Germany. Our findings show that portfolio optimization alone can reduce the levelized cost of hydrogen (LCOH) by 6.24% under EU rules. Adding a battery further cuts costs, achieving an LCOH of 11.8 € 2024 kg −1 . Exploring different temporal matching schemes reveals that weekly matching reduces LCOH by 2 € 2024 kg −1 while maintaining a high share of renewable energy. The model offers a flexible tool for optimizing PPA portfolios in various industrial settings. • Stochastic portfolio optimization for PPA procurement under RED2 regulation. • Real-world case study based on measurement data from German glassworks. • Portfolio optimization decreases LCOH already with few PPAs. • Green hydrogen producers can benefit from battery storage installation. • Hourly matching significantly increases LCOH compared to pure day-ahead procurement.

Authors 3

1. Jonas Brucksch corresponding Aachen Center for Ageing Chair for Electrochemical Energy Conversion and Storage Systems Institute for Power Electronics and Electrical Drives (ISEA) Institute for Power Generation and Storage Systems (PGS)

   RWTH Aachen University · Jülich Aachen Research Alliance

   Affiliation as printed

   Center for Ageing, Reliability and Lifetime Prediction for Electrochemical and Power Electronic Systems (CARL), RWTH Aachen University, Aachen, Germany

   Chair for Electrochemical Energy Conversion and Storage Systems, Institute for Power Electronics and Electrical Drives (ISEA), RWTH Aachen University, Aachen, Germany

   Institute for Power Generation and Storage Systems (PGS), E.ON ERC, RWTH Aachen University, Aachen, Germany

   Jülich Aachen Research Alliance, JARA-Energy, Aachen, Germany

2. Jonas van Ouwerkerk Aachen Center for Ageing Chair for Electrochemical Energy Conversion and Storage Systems Institute for Power Electronics and Electrical Drives (ISEA) Institute for Power Generation and Storage Systems (PGS)

   RWTH Aachen University · Jülich Aachen Research Alliance

   Affiliation as printed

   Center for Ageing, Reliability and Lifetime Prediction for Electrochemical and Power Electronic Systems (CARL), RWTH Aachen University, Aachen, Germany

   Chair for Electrochemical Energy Conversion and Storage Systems, Institute for Power Electronics and Electrical Drives (ISEA), RWTH Aachen University, Aachen, Germany

   Institute for Power Generation and Storage Systems (PGS), E.ON ERC, RWTH Aachen University, Aachen, Germany

   Jülich Aachen Research Alliance, JARA-Energy, Aachen, Germany

3. Dirk Uwe Sauer Aachen Center for Ageing Chair for Electrochemical Energy Conversion and Storage Systems Institute for Power Electronics and Electrical Drives (ISEA) Institute for Power Generation and Storage Systems (PGS)

   RWTH Aachen University · Forschungszentrum Jülich · Jülich Aachen Research Alliance · Helmholtz-Institute Münster

   Affiliation as printed

   Center for Ageing, Reliability and Lifetime Prediction for Electrochemical and Power Electronic Systems (CARL), RWTH Aachen University, Aachen, Germany

   Chair for Electrochemical Energy Conversion and Storage Systems, Institute for Power Electronics and Electrical Drives (ISEA), RWTH Aachen University, Aachen, Germany

   Forschungszentrum Jülich GmbH, Institute of Energy and Climate Research Helmholtz-Institute Münster: Ionics in Energy Storage (IMD-4), Jülich, Germany

   Institute for Power Generation and Storage Systems (PGS), E.ON ERC, RWTH Aachen University, Aachen, Germany

   Jülich Aachen Research Alliance, JARA-Energy, Aachen, Germany