Volume 61

Techno-Economic Analysis of a Hydrogen Energy System Deployment in a New Industrial Area: A Swedish Case Study Anastasios Saflekos, Reza Fachrizal, Fredrik Wallin

Abstract

The global transition to sustainable energy has renewed interest in hydrogen as a clean and versatile energy carrier. Its versatility lies in its ability to serve multiple roles, from electricity generation and industrial heating to long-duration energy storage and mobility
applications. This paper evaluates the techno-economic feasibility of a hydrogen-based energy system designed to provide backup power for a newly developing industrial area. Two system configurations, i.e., compressed and liquid hydrogen, are assessed in terms
of their performance and cost-effectiveness. The model captures the dynamic operation of key components, including electrolyzers, storage systems, compressors, liquefiers, gasifiers, fuel cells, batteries, and heat exchangers, using high-resolution, yearlong data on
solar irradiance, electricity prices, and industrial load patterns in Eskilstuna, Sweden. A structured sensitivity analysis examines how design decisions affect economic outcomes such as net profit and the Levelized Cost of Hydrogen (LCOH). Results show that compressed hydrogen achieves an LCOH of 81 SEK/kg and a net loss of –1.985 MSEK, compared to liquid hydrogen with 90 SEK/kg and –2.817 MSEK. However, under current
market conditions and cost structures, neither system achieves profitability. The findings provide actionable guidance for industrial stakeholders and suggest avenues for future cost reduction, value stacking, and policy support.

Keywords Hydrogen, Electrolysis, Fuel cells, Industrial energy systems, Techno-economic analysis, Solar PV