# Techno-Economic Analysis of Flare Gas to Hydrogen: A Lean and Green Sustainability Approach
## 4 Discussions  
### Implications of the Results  
Based on the results of the inverse DEA, four companies were identified as inefficient. This suggests that their activities have a negative impact on the environment. The economic analysis reveals that combining operational benchmarking with process simulation modeling can provide a comprehensive framework that enhances resource optimization and supports environmental sustainability in the petroleum industry. The simulation demonstrated that the recovered gas could be converted into hydrogen, a clean and high-demand fuel, thereby transforming an environmentally harmful by-product into a commercially valuable resource. Furthermore, this integration of DEA and process simulation establishes a solid foundation for lean-green transformations in the energy sector. The economic viability of this conversion was calculated using a cost-benefit ratio (CBR), resulting in a CBR of 1.96. This indicates that a return of 1.96 units is achievable for every unit of cost incurred. This positive CBR supports the feasibility of the conversion process, both economically and environmentally. This investment opportunity appeals to investors, with an estimated payback period of 4.11 years, particularly when enhanced with revenue from carbon credits. Overall, the results of this simulation process demonstrated a positive relationship between lean and green principles in the petroleum industry.  
* **Lean Optimization:** Lean principles focus on eliminating waste (muda), increasing productivity, and enhancing quality [68; 69]. The notable decrease in waste (flare gas) illustrates a more efficient operational model that utilizes energy resources more effectively. By transforming the excess gas that would have been flared into hydrogen, the process eliminates waste while maintaining output, aligning with lean manufacturing goals. The lean concept has been used to enhance operational and technical dimensions, contractor and supplier relationships, team organization, and project management practices within the petroleum industry [70].
* **Green Sustainability:** Green principles emphasize environmental sustainability by reducing emissions and resource consumption, while promoting eco-friendly practices [71]. Reducing flaring directly reduces greenhouse gas emissions, supports global sustainability and decarbonization goals. Hydrogen production further promotes the adoption of green energy, as hydrogen is a crucial enabler of carbon-neutral fuel systems.
* **Economic-Environmental Balance:** The CBR value supports integrating lean and green objectives without economic sacrifice. Instead of viewing sustainability as a cost center, this approach shows that sustainable practice can generate revenue.  
Hydrogen plays a critical role in reducing carbon emissions until the production of green hydrogen becomes more readily available and cost-competitive. For a country like Nigeria, with abundant natural gas and a high flaring rate, transitioning into hydrogen production will serve as a sustainable solution for managing gas flaring. This study also showed that the annual CO\({}_{2}\) avoided or otherwise to have been flared from the production of 77.5 million kilograms of hydrogen each year was 697,734 tons of CO\({}_{2}\)/year, but was prevented through the production of blue hydrogen technology. This avoided CO\({}_{2}\) can be monetized through carbon credits or tax avoidance in regions where the emission trading scheme is strictly regulated. With a carbon pricing of USD 20/ton, the annual revenue from this research analysis increases by USD 13,954,680, significantly increasing the economic case for the blue hydrogen project. Consequently, this hydrogen production reduces carbon emissions and makes a significant contribution to global efforts to combat climate change.