University of Twente Student Theses


Determining a fitting hydrogen strategy for Pure Energie

Bos, Thomas W. (2023) Determining a fitting hydrogen strategy for Pure Energie.

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Abstract:Combating global warming is one of the major concerns of our time. It is important to reduce greenhouse gas (GHG) emissions in all industries and social groups. The switch from traditional energy systems, which rely on fossil fuels and produce GHG pollution, to sustainable energy systems that produce GHG at a lower rate is a crucial step in reducing GHG emissions. It is assumed that hydrogen can play an important role in the energy transition. This is also recognised by Pure Energie. As a producer and supplier of sustainable energy, Pure Energie is actively working to reduce greenhouse gas emissions and accelerate the energy transition. This thesis explores the feasibility of green hydrogen production for Pure Energie. With a focus on wind farms and solar farms, Pure Energie aims to transition to a low­carbon economy by investing in hydrogen as a key player in the clean energy sector. The thesis examines the parameters necessary for a viable business case, considering the company’s renewable energy portfolio and the selection of windplan Groen as the optimal location for hydrogen expansion. By analyzing different system setups and conducting sensitivity analyses, the study reveals that the project’s success hinges on factors such as electricity and hydrogen prices rather than geographical positioning. Moreover, the research suggests that placing the electrolyser near areas with high grid congestion could create additional income streams. The importance of Power Purchase Agreements (PPAs) or fixed energy contracts is highlighted, emphasizing the need for stable pricing to mitigate risks. Comparisons between hydrogen and natural gas prices demonstrate that while hydrogen may not be cost­competitive, its renewable and green nature can appeal to companies seeking to reduce their environmental footprint. Additionally, the thesis explores how the electrolyser can be used to hedge risk for new wind turbines through long-term fixed energy contracts. This strategy helps mitigate market price fluctuations and reduces portfolio risk for Pure Energie. Overall, this thesis presents a compelling case for the feasibility of green hydrogen production, showcasing the potential market opportunities and the benefits it brings to Pure Energie’s sustainability goals and portfolio diversification.
Item Type:Essay (Master)
Pure Energie, Enschede, The Netherlands
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:83 economics
Programme:Industrial Engineering and Management MSc (60029)
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