The impact of offshore energy hub and hydrogen integration on the Faroe Island’s energy system

Abstract

This study explores the integration of offshore wind energy and hydrogen production into the Faroe Islands’ energy system to support decarbonisation efforts, particularly focusing on the maritime sector. The EnergyPLAN model is used to simulate the impact of incorporating green hydrogen, produced via electrolysis, within a closed energy system. The study evaluates different configurations of hydrogen production and their feasibility focusing on electrolyser technologies and placement options (in-turbine, platform-based, and shoreline). The hydrogen produced is intended for ammonia production, replacing 11% of the fossil fuels used in maritime transport by 2030. Results indicate that integrating hydrogen with offshore wind energy can reduce fossil fuel reliance and carbon dioxide emissions. The in-turbine electrolyser setup offers the cost-effective placement option, while the platform setup is the most expensive. Among the three electrolyser technologies evaluated (alkaline, solid oxide and proton exchange membrane), the alkaline electrolyser results in the lowest overall system cost. The findings provide insights into the potential for renewable energy systems in a small island context and contribute to a broader understanding of green hydrogen’s role in energy transitions.