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Techno-economic Optimization of Renewable Hydrogen Infrastructure via AI-based Dynamic Pricing

Abstract

This study presents a techno-economic optimization of hydrogen production using hybrid wind-solar systems across six Australian cities, highlighting Australia’s green hydrogen potential. A hybrid PVwind-electrolyzer-hydrogen tank (PV-WT-EL-HT) system demonstrated superior performance, with Perth achieving the lowest Levelized Cost of Hydrogen (LCOH) at $0.582/kg, Net Present Cost (NPC) of $27.5k, and Levelized Cost of Electricity (LCOE) of $0.0166/kWh. Perth also showed the highest return on investment, present worth, and annual worth, making it the preferred project site. All locations maintained a 100% renewable fraction, proving the viability of fully decarbonized hydrogen production. Metaheuristic validation using nine algorithms showed the Mayfly Algorithm improved techno-economic metrics by 3–8% over HOMER Pro models. The Gray Wolf and Whale Optimization Algorithms enhanced system stability under wind-dominant conditions. Sensitivity analysis revealed that blockchain-based dynamic pricing and reinforcement learning-driven demand response yielded 8–10% cost savings under ±15% demand variability. Nevertheless, regional disparities persist; southern cities such as Hobart and Melbourne exhibited 20–30% higher LCOH due to reduced renewable resource availability, while densely urbanized cities like Sydney presented optimization ceilings, with minimal LCOH improvements despite algorithmic refinements. Investment in advanced materials (e.g., perovskite-VAWTs) and offshore platforms targeting hydrogen export markets is essential. Perth emerged as the optimal hub, with hybrid PV/WT/B systems producing 200–250 MWh/ month of electricity and 200–250 kg/month of hydrogen, supported by policy incentives. This work offers a blueprint for region-specific, AI-augmented hydrogen systems to drive Australia’s hydrogen economy toward $2.10/kg by 2030.

Funding source: This research has been generously supported by the National Research Foundation (NRF) of South Africa through strategic funding provided to the Fort Hare Institute of Technology, a leading innovation hub within the University of Fort Hare. The project is aligned with national priorities for sustainable development and technological advancement. Funding was awarded under NRF Reference Number RCSEN240315209248
Related subjects: Policy & Socio-Economics
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/content/journal7950
2025-08-27
2025-12-05
/content/journal7950
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