Refinery Decarbonization in Austria: A Techno-Economic and Ecological Assessment of Green Hydrogen Opportunities through Import and Local Production

Abstract

Renewable energy is rapidly transforming our planet, significantly reducing carbon emissions across various sectors through increased clean energy capacity. However, "hard-to-abate" industries such as refining, steel, plastics, and heavy transport fuels require innovative solutions due to their high-temperature processes. This thesis explores sustainable methods of hydrogen generation, focusing on electrolysis, which emerges as an environmentally friendly method for producing high-purity hydrogen when powered by renewable electricity sources like solar or wind energy. Green hydrogen is identified as a key solution for decarbonizing the refining industry by replacing grey hydrogen used in hydro-processing and hydro-sulfurization. The study aims to develop a comprehensive strategy for Austria's refinery sector transitioning to green hydrogen, assessing the feasibility of meeting current demands with hydrogen from renewable sources. An analysis of existing hydrogen production at the Schwechat refinery is conducted, evaluating the potential for green hydrogen production through solar photovoltaic and wind energy, including the calculation of levelized costs under various scenarios. The assessment considered factors such as photovoltaic energy generation potential, electrolyzer technology, carbon dioxide emissions avoided, and the costs required for green hydrogen production. In addition, opportunities for hydrogen imports from North Africa is evaluated due to its superior solar and wind resources. This thesis includes a comparative analysis between local production in Austria and potential imports from Tunisia, focusing on levelized costs and also life cycle assessments of green hydrogen to evaluate environmental impacts and greenhouse gas abatement costs. Key findings reveal electricity costs as the largest component of hydrogen's levelized cost, indicating that the cost-effectiveness of production is sensitive to electricity prices. While North Africa presents a competitive advantage due to its greater renewable energy potential, importing hydrogen incurs higher capital costs associated with political and logistical uncertainties. Lastly, the greenhouse gas abatement cost analysis indicates that for green hydrogen to compete with cheaper grey hydrogen, significant increases in carbon dioxide pricing will be necessary in the near future.