Abstract
This study aims to determine the most cost-effective approach for production of green hydrogen, a crucial element for global decarbonization efforts despite its high production costs. The primary research question addresses the optimal and economically viable strategy for green hydrogen production considering various scenarios and technologies. Through a comprehensive analysis of eight scenarios, the study employs economic parameters such as net present value, minimum production cost, payback period and sensitivity analysis. The analysis is validated using established economic metrics and real-world considerations to ensure feasibility. The results suggest that a hybrid system combining solar photovoltaic (PV) with storage and onshore wind turbines is a promising approach yielding a minimum cost of $3.01 per kg of green hydrogen, an internal rate of return (IRR) of 5.04% and 8-year payback period. These findings provide a practical solution for cost-effective green hydrogen production supporting the transition to sustainable energy sources. The study also highlights the future potential of integrating solar thermal (CSP) with an organic Rankine cycle (ORC) system for waste heat recovery in hydrogen production. The sensitivity analysis provides the importance of capacity factor, levelized cost of hydrogen, capital expenditure and discount rate in influencing production costs.