Local Electricity Market for Hydrogen Ferry Application

Green hydrogen, with its zero greenhouse gas emissions, has emerged as a promising energy carrier for decarbonizing various sectors, particularly maritime transportation. The maritime sector, heavily reliant on fossil fuels, contributes significantly to global carbon emissions, making short-distance ferry services an ideal candidate for green hydrogen adoption. However, high hydrogen production costs, driven by electricity prices, pose a significant barrier. This paper investigates the potential of local electricity markets (LEMs) in reducing hydrogen production costs for ferry operations. LEMs enable the integration of renewable energy sources, providing access to cheaper, cleaner electricity. An optimization model is presented, aiming to minimize electricity procurement costs for hydrogen production while meeting ferry hydrogen demand of Norwegian coastal island. The model accounts for dynamic LEM pricing, renewable energy variability, and ferry operational constraints. The study involves 144 European households, including consumers and prosumers with PV and battery systems, to evaluate the energy community's role in supporting hydrogen production. Two case studies are conducted: one without LEM transactions and one with LEM power exchange. The results show that LEMs can significantly lower hydrogen production costs, reduce grid dependence, and enhance renewable energy utilization. Specifically, enabling LEM results in a 14.26% reduction in total system cost and a 5.75% reduction in electricity cost for the electrolyzer. This approach also optimizes hydrogen storage and aligns production with renewable energy availability.