Techno-Economic Assessment of Various Offshore Energy Hub Configurations in The Dutch North Sea

Abstract

This study explores the techno-economic potential of Offshore Energy Hubs (OEHs) in the North Sea, particularly focusing on integrating offshore wind energy with hydrogen production. Given the urgent need to reduce CO2 emissions, offshore wind farms (OWFs) in the Dutch North Sea are assured to play a vital role in meeting climate targets. However, the variability of wind energy and the challenges of integrating this energy into the onshore grid demands innovative solutions. The role of green hydrogen, utilising offshore wind electricity generation is emerging as a viable solution to help overcome these obstacles. This research examines how different hydrogen-to-electricity (H/E) ratios impact the cost-effectiveness of these hubs. For this purpose a comprehensive techno-economic simulation model was constructed. It assesses configurations that either focus on hydrogen production or prioritize electricity transmission, comparing centralised island setups to distributed platform designs. Additionally, the study considers standardised equipment sizes and examines the the effects of under-sizing infrastructure components to enhance system performance. Findings indicate that for hydrogen production, a centralised island configuration is most cost- effective, achieving a Levelised Cost of Hydrogen (LCOH) of AC2.81/kg for 6 and 8 GW electrolysis, which will likely not be competitive with the price of blue hydrogen. For electricity transmission, dis- tributed platforms are more advantageous, offering the lowest Levelised Cost of Electricity (LCOE) at AC42.72/MWh for 16 GW electrolysis. The study concludes that centralised islands are preferable for hydrogen production due to their lower investment costs, while distributed platforms are more suitable for electricity transmission due to the lower cost requirements for electricity feed-in. The greatest oppor- tunities for cost savings are related to the electricity costs and the CAPEX of the electrolyser, as these account for the largest portion of the total system costs. Notably, under-sizing the electrolysis capacity in hybrid systems can further reduce costs, with the optimal LCOH of AC2.80/kg achieved. Strategic under-sizing of infrastructure components enhances the overall cost-effectiveness of these systems. These insights are crucial for designing future offshore energy systems that balance between hydrogen and electricity production, contributing to sustainable energy solutions and climate neutrality goals.