Date of Award

2024

Publication Type

Thesis

Degree Name

M.A.Sc.

Department

Mechanical, Automotive, and Materials Engineering

Keywords

Combined Heat and Power Engine; Electrolysis; Green Hydrogen; Greenhouse; Levelized Cost of Hydrogen; Payback Period

Supervisor

David Ting

Supervisor

Rupp Carriveau

Abstract

This thesis presents a comprehensive techno-economic analysis of integrating green hydrogen production into the energy systems of commercial greenhouses, focusing on a case study in Ontario, Canada. Utilizing Proton Exchange Membrane (PEM) electrolysis powered by a 200MW wind farm, two studies evaluate the feasibility of hydrogen integration to meet the heating, and electricity demands of a greenhouse. Firstly, nine distinct case scenarios were investigated by exploring hydrogen production, transportation, and utilization, specifically targeting blends of hydrogen and natural gas (10%, 20%, and 100% hydrogen) for Combined Heat and Power (CHP) generation. Key techno-economic parameters, including the levelized cost of hydrogen (LCOH), payback period (PBT), internal rate of return (IRR), and discounted payback period (DPB), are analyzed to identify the most viable integration strategy. The analysis reveals that a 10% hydrogen blend utilizing existing transmission infrastructure results in the lowest levelized cost of hydrogen (LCOH) at USD 5.06/kg. In contrast, a 100% hydrogen scenario shows superior financial metrics, with a payback period (PBT) of 6.205 years and an internal rate of return (IRR) of 15.16%. The economic viability may be further enhanced by the potential sale of surplus hydrogen and oxygen byproducts, with total profits significantly impacted by the chosen pricing and operational strategies. Key techno-economic metrics such as LCOH and discounted payback period (DPB) are assessed, with results showing an LCOH of USD 6.16/kg (including oxygen sales) and a DPB of 3.61 years. Both studies incorporate sensitivity analyses to identify critical factors influencing LCOH and financial performance. Additionally, the potential revenue from selling surplus hydrogen and oxygen is explored, with projected profits significantly enhancing the economic feasibility of the proposed hydrogen integration strategies. Overall, this work contributes valuable insights into sustainable energy solutions for the agricultural sector, promoting a transition towards renewable energy and reducing reliance on fossil fuels.

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