Hydrogen is a potential low-emission enabler for decarbonisation, produced by water electrolysis using electricity whose cost and carbon intensity depend heavily on the source. Previous studies indicate it can be economically viable at high load factors with cheap and low-carbon electricity. Therefore, integrating both economic and environmental considerations is crucial for assessing hydrogen production viability and sustainability. This study addresses this gap by integrating these dimensions, employing hourly historical electricity prices and greenhouse gas (GHG) intensity data for European countries in 2024. Relying on time-series of the spot electricity market from ENTSO-E, and GHG intensity of electricity consumed from EcoDynElec_xr, the developed model calculates hydrogen production costs, GHG intensity, and associated GHG abatement costs as functions of load factor. Economically, optimal load factors range from 40 to 70%, balancing investment costs with avoiding costly market hours. Environmentally, higher load factors increase GHG intensity of e-H2 produced due to the reliance on electricity at times with higher carbon content. To address this trade-off, GHG abatement costs with e-H2 compared to the fossil alternative were calculated. The results show that abating GHG emissions at lowest cost is done by running electrolysers within load factors of 20%–70%. Under current electricity market conditions and assumed electrolyser costs, these abatement costs remain substantial, challenging its viability without significant financial support. This research offers essential evidence-based guidance for stakeholders and policymakers aiming to optimise the sustainability and scalability of electrolytic hydrogen within existing power systems.
BESSEAU Romain;
SCARLAT Nicolae;
BUFFI Marco;
HURTIG Oliver;
DOLCI Francesco;
ARRIGONI Alessandro;
2026-07-09
ELSEVIER LTD
JRC145017
2590-1745 (online),
https://www.sciencedirect.com/science/article/pii/S2590174526004058,
https://publications.jrc.ec.europa.eu/repository/handle/JRC145017,
10.1016/j.ecmx.2026.101922 (online),
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