Cost Efficiency Losses Assessment and Economies of Scale Impact in Green Hydrogen and e-Methanol Production from Direct Air Capture Electrolysis

Abstract

Green hydrogen and e-Methanol production have the potential to contribute to decarbonization and a greener economy whilst managing concerns of sustainability in the energy transition. The use of Direct Air capture technology to suck Carbon dioxide and water to yield methanol in combination with a solid Oxide Electrolyzer and a Methanol Synthesis system process is a promising alternative to fossil fuels. while it encounters issues related to cost-efficiency losses. The aim of this study is to investigate alternatives to reduce cost efficiency losses and economies of scale impact in the production process using solar energy. Data were collected from online platforms and databases. This study carried out a techno-economic assessment to evaluate the production costs as well as the economic performance of the model. A sensitivity analysis is also carried out based on input parameters such as electricity cost, direct air capture, solid oxide electrolyzer cell, and e-Methanol synthesis capital expenditure to determine cost efficiency losses. Additionally, the impact of economies of scale was evaluated in regard to an alteration of different capacities of the model system component. The same as, technological advancement simulation based on the learning curve to predict future costs in 2050. This scenario is developed to explore pathways to reduce the Levelized Cost of capture, Hydrogen, and Methanol. The findings showed that the cost of capture, Hydrogen, and e-Methanol were respectively found equal to 0.053 €/kWh, 0.52 €/kg (CO2/H2O), 0.36 €/kg, 0.063 €/kg. Meanwhile, the electricity, direct air capture, and solid oxide electrolyzer cell capital investment are the most sensitive parameters affecting the Levelized costs of this study. The economies of scale assessment results through the simulation of the models’ capacity showed that as the component capacity increases, the production cost decreases. In addition to the scenario 2050 which has shown the project profitability based on technological advancement with a positive Net Present Value of 6.84 million €.