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Conclusions
• The lowest LCOE of 0.131$/kWh achieved in Ittoqqortoormiit is higher than the global average of 0.033$/kWh, but still lower than Greenland's current average LCOE.
• This suggests that the proposed system could be feasible, especially as the efficiency of similar systems improve in the future, but some limitations to the used methodology remain.
• The LCOH of 3.1$/kg for Ittoqqortoormiit indicates a viable solution for hydrogen production in Greenland, The system could be scaled up to produce more hydrogen for other uses.
• Greenland’s low LCOH values are globally competitive, making it a potential candidate for Green hydrogen production for industrial and export purposes.
Future Work
This project can be taken further by assessing some scenarios that were not incorporated due to time limitations, these scenarios can increase the robustness of the study and open new horizons for more in depth insight.
Scenarios to be studied include:
• A system that utilizes a combination of two renewable energy systems (wind and solar) that is backed up by a combined cycle green hydrogen power system, comparison with a similar system that utilizes battery backup and with the results of the studied systems, this involves re-selecting the locations as wind and solar resources tend to vary.
• Considering a system that does not only produce hydrogen to stabilize supply of electricity from the renewable energy system but goes beyond to produce green hydrogen either to supply it to local industries (Mining and Fishing) or for export purposes. This is promising given the remarkably low values of Levelized Cost of Hydrogen achieved at some of the studied locations.
• Monitoring the effect of economies of scale by considering a single renewable energy system that covers the demand of multiple of these small towns simultaneously, but this will need to include the cost of grid connectivity between these towns in the economic analysis, and some geographical limitations remain.
There is a wide range of possibilities to consider, our HOMER and Aspen models are a good starting point for further study, but lack of available data remains a challenge.
Limitations
The methodology used for assessing feasibility of systems involves some limitations, taking them into account requires more accurate cost data and the use of more sophisticated tools, these limitations include:
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HOMER’s calculations are highly dependent on input cost assumptions, an accurate estimation of these inputs is highly complex given the constantly changing nature of the market.
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Homer does not account for changes in regulatory environment and market conditions.
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HOMER does not account for construction and financing costs in its modelling.
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Even though HOMER can simulate the variability of renewable resources throughout the year, the ever-changing nature of renewable resources is not entirely accounted for in typical scenarios.
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