Economic Effects of Large-Scale Green Hydrogen Production
(2025) NEKH01 20251Department of Economics
- Abstract
- This thesis investigates potential macroeconomic effects of replacing a substantial part of the energy demand by green hydrogen in Brazil, Germany, Japan and the US. The objective is to calculate the levelized cost of hydrogen by assuming domestic production of green hydrogen, corresponding to 11% of the energy demand, in each respective country. Thus, this thesis provides insights into the economic feasibility of such large-scale green hydrogen production. The levelized cost of hydrogen is calculated based on an optimization tool taking the production costs, e.g. the cost of solar -or wind power, into account. Especially, the geographic location is of value since wind -and solar data are evaluated to minimize the production cost of green... (More)
- This thesis investigates potential macroeconomic effects of replacing a substantial part of the energy demand by green hydrogen in Brazil, Germany, Japan and the US. The objective is to calculate the levelized cost of hydrogen by assuming domestic production of green hydrogen, corresponding to 11% of the energy demand, in each respective country. Thus, this thesis provides insights into the economic feasibility of such large-scale green hydrogen production. The levelized cost of hydrogen is calculated based on an optimization tool taking the production costs, e.g. the cost of solar -or wind power, into account. Especially, the geographic location is of value since wind -and solar data are evaluated to minimize the production cost of green hydrogen. The levelized cost of hydrogen is then compared to current energy prices with a specific focus on oil to understand how the energy cost could change. This cost change is then compared to historic values to understand potential macroeconomic effects with a special focus on inflation and GDP. The energy costs increase by between 17.3%, for Brazil, and 104.4%, for Japan, in the evaluated scenarios. These cost changes are comparable to, or larger than, historic oil price changes during the period 1970-2007. This means that relying largely on green hydrogen likely induces similar macroeconomic effects as historic oil crises. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9199678
- author
- Nyrenstedt, Gustav LU
- supervisor
- organization
- course
- NEKH01 20251
- year
- 2025
- type
- M2 - Bachelor Degree
- subject
- keywords
- Green Hydrogen, Energy Price Shocks, Energy Policy, Renewable Energy Economics, Levelized Cost of Hydrogen
- language
- English
- id
- 9199678
- date added to LUP
- 2025-09-12 09:08:18
- date last changed
- 2025-09-12 09:08:18
@misc{9199678,
abstract = {{This thesis investigates potential macroeconomic effects of replacing a substantial part of the energy demand by green hydrogen in Brazil, Germany, Japan and the US. The objective is to calculate the levelized cost of hydrogen by assuming domestic production of green hydrogen, corresponding to 11% of the energy demand, in each respective country. Thus, this thesis provides insights into the economic feasibility of such large-scale green hydrogen production. The levelized cost of hydrogen is calculated based on an optimization tool taking the production costs, e.g. the cost of solar -or wind power, into account. Especially, the geographic location is of value since wind -and solar data are evaluated to minimize the production cost of green hydrogen. The levelized cost of hydrogen is then compared to current energy prices with a specific focus on oil to understand how the energy cost could change. This cost change is then compared to historic values to understand potential macroeconomic effects with a special focus on inflation and GDP. The energy costs increase by between 17.3%, for Brazil, and 104.4%, for Japan, in the evaluated scenarios. These cost changes are comparable to, or larger than, historic oil price changes during the period 1970-2007. This means that relying largely on green hydrogen likely induces similar macroeconomic effects as historic oil crises.}},
author = {{Nyrenstedt, Gustav}},
language = {{eng}},
note = {{Student Paper}},
title = {{Economic Effects of Large-Scale Green Hydrogen Production}},
year = {{2025}},
}