Cost-benefit analysis, LCOE and evaluation of financial feasibility of full commercialization of biohydrogen

Abstract

This investigation performs a cost-benefit analysis with economic incentives concepts (opportunity cost and profit index), discounted indices and adjustment techniques (two-tier learning curve and cost-capacity scaling methods) to support comprehensive financial decisions about investment on biohydrogen plant. A life-cycle assessment is utilized to construct four scales of the production of commercialization, which are the bench/laboratory scale, pilot scale, demonstration scale, and commercial scale, to evaluate entire economic feasibility. The results reveal that the levelized cost of energy (LCOE) of biohydrogen will be approximately USD 2 to 3/kg. All financial indices reveal biohydrogen is economically feasible of investment and will be commercialized successfully before the timelines in many official reports. Results reveal decision-making criteria should include the economic incentives. LCOE of biohydrogen is less sensitive to the cost of biomass feedstock, which is more sensitive to the CAPEX, OPEX. Copyright (C) 2015, Hydrogen Energy Publications, LLC. Published by Elsevier Ltd. All rights reserved.