Optimal Design and Technology Selection for Electrolyzer Hydrogen Plants Considering Hydrogen Supply and Provision of Grid Services

Electrolyzer Hydrogen Plants (EHPs) can boost grid resilience while producing hydrogen, but choosing the right electrolyzer technology is crucial for efficiency and cost-effectiveness. Technologies like Alkaline and Proton Exchange Membrane (PEM) have unique strengths, making it important to identify the most suitable option for grid services. This paper introduces a novel model for optimizing the design of EHPs by identifying the most appropriate electrolyzer technology for different grid services, such as demand response, operating reserve, and renewable smoothing, while also meeting various hydrogen demand and operation requirements based on their applications. The model aims to minimize the Levelized Cost of Hydrogen (LCOH) by optimizing EHP equipment ratings, selecting the best electrolyzer technology, and adjusting the internal parameters of the electrolyzer process. Through numerical validation using the IEEE 30-bus transmission test system across different scenarios with varying input power source profiles and electricity pricing schemes, the findings demonstrate that PEM electrolyzer excels in renewable smoothing and high-pressure applications, whereas Alkaline electrolyzer is more competitive for low-pressure applications and scenarios with fixed electricity prices. Selecting the appropriate electrolyzer technology can significantly reduce the LCOH, potentially by up to 30%.