Techno-economic analysis of green hydrogen production from wind and solar along CPEC special economic zones in Pakistan

Hydrogen-based systems are garnering attention as part of efforts to achieve low-carbon emissions and net-zero targets. In developing countries, natural gas and coal serve as a primary source for hydrogen production, given their accessibility and cost-effectiveness. Green hydrogen presents a promising clean energy solution with significant potential to decarbonize the industrial sector. In this article, a techno-economic analysis has been performed for green hydrogen production using wind and solar as primary energy sources. The analysis is conducted at nine special economic zones (SEZs) and a free zone at Gwadar Sea Port using the Hybrid Optimization of Multiple Energy Resources (HOMER) Pro software. A hybrid energy system has been designed to meet the industrial electrical and hydrogen demand of 600 MWh/day and 60 tonnes H₂ per day, respectively. A comparative analysis of on-grid and off-grid systems across all SEZs is performed for the optimal system. A sensitivity analysis is conducted on different parameters that could impact the levelized cost of hydrogen (LCOH). The results indicate that LCOH varies from 4.19 $/kg to 8.66 $/kg for off-grid and 2.12 $/kg to 4.65 $/kg for on-grid systems which is a competitive cost to other countries. The most feasible economic zones for green hydrogen production are found to be Dhabeji and Port Qasim with the lowest LCOH of 4.19 $/kg and 4.22 $/kg for off-grid, 2.12 $/kg and 2.36 $/kg for the grid-connected system, respectively. Dhabeji also exhibits the lowest CO₂ emissions per year making itself the most feasible location for green hydrogen production. Grid-connected systems are a great opportunity for Pakistan to produce low-cost green hydrogen for industrial decarbonization and the country’s economic growth.