Benefits of Temporally-Resolved, Policy-Relevant, Data-Informed Technoeconomic Evaluation of Multifunctional Systems:...

Hydrogen (H₂) production and usage can be integrated into existing infrastructure to reduce carbon emissions and increase fuel supply security. In this work, we design and execute a technoeconomic analysis for a multifunctional District Energy System (DES) that produces and uses H₂. We parametrically analyze levelized costs for H₂, oxygen, and carbon dioxide abatement and capture to evaluate the viability of integrating H₂ production, using Solid Oxide Electrolysis Cells, for a DES that could alternatively purchase H₂ and install carbon capture utilization and storage (CCUS). We find that different project alternatives are distinctively sensitive to certain product prices, and therefore suitable for particular markets. Self-production alternatives with large H₂ production do not require carbon pricing, so long as oxygen revenues are high. Conversely, when H₂ is purchased, carbon prices in excess of $209/Tonne_CO2e are required for project viability. Projects with CCUS that purchase H₂ depend on carbon-related revenues-even when hydrogen is free. When purchasing H₂ in scenarios without carbon pricing, only projects using renewable-energy-based H₂ and no CCUS implementation are viable for nonzero H₂ prices (<$0.85/kg_H2). Our work demonstrates that evaluating the levelized costs of all products in combination is necessary to assess the economic feasibility of multifunctional systems.