Green hydrogen as a sustainable operations strategy: A socio-economic perspective

Abstract

Hydrogen is an energy carrier that can support the development of sustainable and flexible energy systems. However, decarbonization can occur when green sources are used for energy production and appropriate water use is manifested. This work aims to propose a socio-economic analysis of hydrogen production from an integrated wind and electrolysis plant in southern Italy. The estimated production amounts to about 1.8 million kg and the LCOH is calculated to be 3.60 €/kg in the base scenario. Analyses of the alternative scenarios allow us to observe that with a high probability the value ranges between 3.20–4.00 €/kg and that the capacity factor is the factor that most affects the economic results. Social analysis, conducted through an online survey, shows a strong knowledge gap as only 27.5 % claim to know the difference between green and grey hydrogen. There is a slight propensity to install systems near their homes, but this tends to increase due to increased knowledge on the topic. Respondents state sustainable behaviours, and this study suggests that these aspects should also be transformed into the energy choices that are implemented every day. The study suggests information to policy-makers, businesses and citizens as it outlines that green hydrogen is an operations strategy that moves toward sustainable development.