Green Hydrogen Production Study in Existing Oil Refinery with Evaluating Technical, Economic, and Environmental Outcomes

Green hydrogen offers a sustainable alternative source of fossil fuels to compensate for the increasing energy demand. This study addresses the increasing energy demand and the need for sustainable alternatives to fossil fuels by examining the production of green hydrogen in an existing Egyptian oil refinery. The primary objective is to evaluate the technical, economic, and environmental outcomes of integrating green hydrogen to increase the refinery’s hydro processing capacity. The methodology involves the use of water electrolysis powered exclusively by renewable electricity from a 60 MW solar installation with a panel surface area of 660,000 m². A simulation model of alkaline electrolyzer skids was developed to assess the production of an additional 1,260 kg/h of hydrogen, representing a 15% increase over the existing Steam Methane Reforming (SMR) capacity. The environmental impact was quantified by calculating the reduction in CO₂ and equivalent emissions, while an economic forecasting analysis was conducted to project the production costs of green versus grey hydrogen. The main results indicate that the integration is technically feasible and environmentally beneficial, with a significant reduction in the refinery’s carbon footprint. Economically, the study projects that by 2028, the production cost of green hydrogen will fall to 1.56 USD/kg H₂, becoming more cost-effective than grey hydrogen at 1.65 USD/kg H₂, largely due to the influence of carbon taxes and credits. This study underscores the transformative potential of green hydrogen in decarbonizing industrial processes, offering a viable pathway for refineries to contribute to global climate change mitigation efforts.