# Green Hydrogen Production--Fidelity in Simulation Models for Technical-Economic Analysis
## 4 Simulation Results and Discussion
### Analysis Considering CAPEX and OPEX  
The analysis of capital expenditure (CAPEX) and operating expenditure (OPEX) is a fundamental practice in the economic evaluation of projects. Table 8 shows all the information required for the calculation of capital and operating costs. Based on the values in Table 6 and Figure 12, the profit from the sale of energy to the Ecuador electrical system is calculated. These results are presented in the following Figure 16. As can be seen, there is a surplus in energy sales in most months, except in June and December, when additional energy must be purchased from the grid. Annual revenue from electricity sales amounts to $367.63. \begin{table}
\begin{tabular}{l c c} \hline \hline
**Consumption Range (kWh)** & **Energy Cost (USD/kWh)** & **Distribution (USD/Costumer)** \\ \hline
1 to 50 & 0.091 & \\
51 to 100 & 0.0931 & \\
101 to 150 & 0.095 & \\
151 to 200 & 0.097 & \\
201 to 250 & 0.099 & \\
251 to 300 & 0.101 & \\
301 to 350 & 0.103 & 1.414 \\
351 to 500 & 0.105 & \\
501 to 700 & 0.1285 & \\
701 to 1000 & 0.1450 & \\
1001 to 1500 & 0.1709 & \\
1501 to 2500 & 0.2752 & \\
2501 to 3500 & 0.4360 & \\ Greater than 3501 & 0.6812 & \\ \hline \hline \end{tabular}
\end{table} 
Table 6: Electricity prices hour for Ecuador. \begin{table}
\begin{tabular}{l c c c} \hline \hline
**Description** & **Parameter Value** & **Unit** \\ \hline Power Rating & 0 to 3000 & W \\ Current Rating & 0 to 56 & A \\ Voltage Adjustable & 43.2 to 57.6 & VDC \\ Voltage Ripple & \(\pm 1\) & V \\ Ambient Temperature & \(-10\) to 45 & Centigates \\ Relative Humidity & 0 to 95\% & Non-condensing \\ Consumption & \(\leq\)0.78 & \(\frac{\text{Nm}^{3}}{\text{KWh}}\) \\ Efficiency of System & \(\geq\)42\% & N/A \\ \hline \hline \end{tabular}
\end{table} 
Table 7: Fuel cell Ecobox-MR30S1. \begin{table}
\begin{tabular}{l c c c c c} \hline \hline
**System Type** & **Model** & **Cells/Modules** & **Capacity** & **Unit Price** & **Capital Cost** \\ \hline PV & A-250P GSE Atersa & 60 & 15 kW & 800 USD/kW & 12,000 USD \\ Electrolyzer & EL500 Acta S.p.A & 1 & 2.3 kW & 588 USD/kW & 1352.4 USD \\ Battery & Lithium battery & bank & 11 Cells & 44 kWh & 290 USD/kWh & 12,840 USD \\ Total Capital Cost & & & & & 26,192.4 USD \\ \hline Operating cost & For one year & & & & \\ Labor & 0.3\% of total & 1 & & & 78.57 USD/year \\ Distilled water & Ceuador distilled & 1 & 0.4 L/H & 0.66 USD/L & 1520 USD/year \\ Maintenance & 2\% of total capital & 1 & & & 523.84 USD/year \\ Total operating cost & & 1 & & & 2122.41 USD/year \\ \hline \hline \end{tabular}
\end{table} 
Table 8: Cash flow: CAPEX and OPEX. Using the cash flow balance and net income from energy sales, the annual cost of the hydrogen production project is calculated according to Equation (30):  
\[ \begin{split}\text{Total Annual Cost (year)}=\text{Capital Cost}+\text{Annual Operatings Cost}\\ -\text{Annual Grid Revenue}\end{split}  \tag{30}\]  
Total Annual Cost (year) = $ 526192.4+$ 52122.41 -$ 5367.62 = $ 527947.19 \\ \end{split}\]  
Considering capital costs along with operation and maintenance expenses, the cost per kilogram of hydrogen is approximately  
\[ \begin{split}\text{Unit }H_{2}\text{ production Cost}=\frac{\text{Total annual Cost}}{\text{Annual }H_{2}\text{ Production}}\\ \text{Unit }H_{2}\text{ production Cost}=\frac{27947.19}{103.32 \text{ kg}}\\ \text{Unit }H_{2}\text{ production Cost}=\$ 270/\text{kg}\end{split}  \tag{31}\]  
In assessing the economic viability of hydrogen production, the levelized cost of hydrogen (LCOH) based on Equation (32) is used to calculate the average cost of hydrogen production over the entire life of the project. This includes capital, operation, and maintenance costs, as well as the cost of necessary inputs such as electricity and water. \[ \begin{split}\text{LCOH}&=\frac{\text{Net Present Value of total Cost (CAPEX plus OPEX) over the lifetime of the plant}}{\text{Net Present Value of total hydrogen production over the lifetime}}\\ &=\frac{27947.19}{103.32\times 25}=\frac{\$10.81}{\text{kg}} \end{split}