Green Hydrogen (Simple Electrolysis with on site Solar Plant) Financial Model
Originally published: 06/04/2021 15:42
Last version published: 23/05/2022 15:29
Publication number: ELQ-71925-5
View all versions & Certificate
certified

Green Hydrogen (Simple Electrolysis with on site Solar Plant) Financial Model

Green Hydrogen Production with Dispenser and transport cost.

Description
The case I address is to illustrate a fueling station that produces hydrogen and sells it. This is done using an electrolyzer to separate H2 from O. The model includes the Production assumptions (Production Capacity, Water Consumption, Degradation, Cost of maintenance, Cost of Electricity, and transport). The CAPEX includes the cost of the Storage Compressor, Dispenser, Electrolyzer, and Trucks to transport the hydrogen (using diesel).

The purpose of the model to find the selling price needed for a per KG of hydrogen to reach a certain IRR (which can be done through a goal seek). The model has the option of not including the transport cost which would get the selling price of hydrogen at around $4.5 per kg at a project IRR of 10%. Including Transport the selling price of hydrogen would need to be around $30 per kg for a project IRR of 10%.

The output of the model is a clean and easy-to-understand model which has a Balance Sheet, Project Finance Loan, Cash Flow projections with Project and Equity IRR. It includes nice charts to complement the analysis.

The point is to create an easy-to-understand model that does not include any VBA or Macro Switches.

This Best Practice includes
Financial Model For Green Hydrogen Production & Fueling Station

Acquire business license for $150.00

Add to cart

Add to bookmarks

Discuss

Further information

The Model Incorporates data provided by different available sources to Model an Electrolysis financial model. It includes Electrolyzer cost, Dispenser, Storage Compression & Transport Cost. The Model has a ticker to include the cost of the transport trucks or the option to not include it. The goal of the financial model is to create a simple, easy, and clean model to understand how to model the different variables that go into such an analysis. Inputs can be changed, and may not be accurate, however, the infrastructure of the model is for the sole purpose of identifying the price of hydrogen needed for different input assumptions. The default model is one that has no transport cost included. The IRR is driven at 10%, which gave a needed cost of hydrogen per kg of around $6.


3.7 / 5 (3 votes)

please wait...