Economic Viability and Environmental Efficiency Analysis of Hydrogen Production Processes for the Decarbonization of Energy Systems

Abstract

The widespread penetration of hydrogen in mainstream energy systems requires hydrogen production processes to be economically competent and environmentally efficient. Hydrogen, if produced efficiently, can play a pivotal role in decarbonizing the global energy systems. Therefore, this study develops a framework which evaluates hydrogen production processes and quantifies deficiencies for improvement. The framework integrates slack-based data envelopment analysis (DEA), with fuzzy analytical hierarchy process (FAHP) and fuzzy technique for order of preference by similarity to ideal solution (FTOPSIS). The proposed framework is applied to prioritize the most efficient and sustainable hydrogen production in Pakistan. Eleven hydrogen production alternatives were analyzed under five criteria, including capital cost, feedstock cost, O&M cost, hydrogen production, and CO2 emission. FAHP obtained the initial weights of criteria while FTOPSIS determined the ultimate weights of criteria for each alternative. Finally, slack-based DEA computed the efficiency of alternatives. Among the 11, three alternatives (wind electrolysis, PV electrolysis, and biomass gasification) were found to be fully efficient and therefore can be considered as sustainable options for hydrogen production in Pakistan. The rest of the eight alternatives achieved poor efficiency scores and thus are not recommended.