Assessment of levelized costs for green hydrogen production for the national refineries system in Mexico

• Published in: International journal of hydrogen energy 2024-04
• Main Authors: de la Cruz-Soto, Javier, Azkona-Bedia, Irati, Cornejo-Jimenez, Candy, Romero-Castanon, Tatiana
• Format: Article
• Language: English
• Subjects: Green hydrogen; LCOH; Refineries
• ISSN: 0360-3199; 1879-3487
• DOI: 10.1016/j.ijhydene.2024.03.316

This paper presents a techno-economic feasibility study exploring the Levelized Cost of in-situ green hydrogen production in Mexican refineries. With hydrogen comprising over 90% of national consumption in the petrochemical industry, the research analyzes the renewable energy potential of Mexico to sustain hydrogen production in six operational refineries and the recently inaugurated Dos Bocas refinery. The study outlines the potential for green hydrogen production, transportation, and storage, emphasizing its application in petrochemical processes over short, medium, and long-term transitions to green, sustainable hydrogen production. The study reveals significant results, with the Salamanca refinery demonstrating the most competitive cost for solar PV energy production. Additionally, the Salina Cruz refinery proves to have the most competitive energy cost for wind power production, followed closely by Dos Bocas. Furthermore, the research indicates that as solar PV technology costs continue to decrease, the use of solar PV could result in cheaper green H2 even in regions with abundant wind resources like Salina Cruz. The study also shows that a grid-interconnected Power-to-Gas (P2G) system can have a reduction on the Levelized Cost of Hydrogen (LCOH), owed to income generated from energy exportation. This scheme must be further analyzed as a way to increase competitiveness of power to gas systems; even as a mean to indirectly subsidize the operational costs of the green H2 plant during the initial phase of a new project for a refinery. These findings offer valuable insights into the potential for in-situ green hydrogen production and its economic viability within Mexico's petrochemical industry. •Decarbonization of the Mexican refinery system by green H2 production.•The LCOH was assessed for on-site green H2 production for each refinery.•LCOH for Salamanca and Istmo refineries is $2- $3 USD/H2 kg in 2040.•With a grid-interconnected P2G system, the LCOH is $0.8 USD/H2 kg in Salina Cruz.