Hydrogen and Ammonia Production and Transportation from Offshore Wind Farms: A Techno-Economic Analysis

Offshore wind energy is increasingly considered a vital resource to contribute to the renewable energy future. This renewable energy can be converted to clean energy alternatives such as hydrogen and ammonia via power-to-x technologies, enabling storage, energy security, and decarbonization of hard-to-abate sectors. This study assesses the techno-economic feasibility of integrating offshore wind energy with hydrogen and ammonia production as sustainable energy carriers and their transportation via pipelines or shipping. The methodology incorporates Proton Exchange Membrane (PEM) electrolysis for hydrogen production, seawater desalination, and the Haber–Bosch process for ammonia production. Offshore transport scenarios are compared to evaluate their cost-effectiveness based on distance and electrolyzer capacity. Results show the levelized cost of hydrogen (LCOH2) ranges from EUR 6.7 to 9.8/kg (EUR 0.20–0.29/kWh), and the levelized cost of ammonia (LCOA) ranges from EUR 1.9 to 2.8/kg (EUR 0.37–0.55/kWh). Transportation costs vary significantly with distance and electrolyzer capacity, with levelized cost of transport (LCOT) between EUR 0.2 and 15/kg for pipelines and EUR 0.3 and 10.2/kg for shipping. Also, for distances up to 500 km, pipeline transport is the most cost-effective option for both hydrogen and ammonia. Despite high production costs, economies of scale and technological improvements can make offshore hydrogen and ammonia a promising means for a sustainable energy future.