Economic feasibility and sensitivity-based analysis for green hydrogen production using solar and wind energy

Green hydrogen is a means of reducing carbon emissions for meeting energy demand, transportation, and hard-to-abate industries. Green hydrogen is a pivotal element for global energy transitioning towards carbon neutrality for sustainable energy development. However, the uncertainty for green hydrogen production largely depends on site-specific renewable energy availability and system design optimization. While quite a lot of researches on green hydrogen viability exist for individual nations, a comprehensive study is lacking for Nigeria. This present study fills the gap by comprehensively exploring green hydrogen production in four sites (Ilorin, Abuja, Kebbi, and Maiduguri) in Nigeria, by examining photovoltaic (PV/ H 2 ) and wind (WT/ H 2 ) energy resources. By utilizing climate data, mathematical models, and cost analyses, the study examines energy and hydrogen yields, levelized cost of hydrogen (LCOH), levelized cost of energy (LCOE), internal rate of return (IRR), discounted payback period (DPBP), profitability index (PI), carbon dioxide saving potential of each site, and net present value (NPV). The findings show site-specific variability in renewable resource availability, with Maiduguri for WT/ H 2 showing the best performance with the lowest LCOH ($3.8310/kg) and DPBP (6.99years), with a corresponding highest NPV ($535,948), IRR (11.84%), and PI ($1.90), respectively. The sensitivity analysis illustrates the electrolyser degradation impact, electrolyser efficiency, discount rate, operational expenditure (OPEX), capital expenditure (CAPEX), and replacement cost (REPLAX) on green hydrogen viability. These useful insights provide guidance for investors and policymakers to adopt green hydrogen production in Nigeria.