Techno-economic assessment of a green hydrogen production plant for a mining operation in Chile

Sánchez-Squella, Antonio; Muñoz, Mario; Toledo, Mario; Yanine, Fernando

Keywords: hidrogen, Techno-economic

Abstract

Mining operations are the most important industrial activity in the northern regions of Chile with a high use of fossil fuels. This paper develops a techno-economic assessment of a green hydrogen complex designed to supply fuel to stationary diesel electric generators (small-scale project) and fuels cells trucks (medium-scale project) for a company dedicated to exploiting stone materials for the mining sector. The hydrogen complex consists of a photovoltaic plant, electrolyzers, hydrogen compressors and storage, considering geographical location, solar resource and company layout. The economic assessment considers the Levelized Cost of Electricity (LCOE) and Levelized Cost of Hydrogen (LCOH), including investment and sensitivity analysis. For the small-scale project, a 60-kW photovoltaic plant installed in an area of 1000 m2, with an investment of US$ 69,000, results in an average LCOH of 4.88 US$. However, the NPV is -$47,645 and the IRR is −22%, indicating that this project is not viable. For the medium-scale project, a 1700-kW photovoltaic plant installed in an area of 28,000 m2, with an investment of US$ 2,100,000, results in an average LCOH of 4.62 US$. The results indicate feasibility, economic convenience, and scalability, marking this project as a precursor for future initiatives in the Chilean mining sector. Keywords: Green hydrogen; Mining operations; Water electrolysis; Photovoltaic energy; Levelized cost

Más información

Título de la Revista: INTERNATIONAL JOURNAL OF HYDROGEN ENERGY
Volumen: 112
Editorial: PERGAMON-ELSEVIER SCIENCE LTD
Fecha de publicación: 2025
Página de inicio: 531
Página final: 543
Idioma: Inglés
DOI:

https://doi.org/10.1016/j.ijhydene.2025.02.164