Feasibility study of green hydrogen production using renewable energy source solar-energy: A case study of Khenchela, Algeria
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Date
2026
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Abstract
The global transition toward carbon neutrality has positioned green hydrogen as a
promising energy carrier capable of supporting renewable energy integration and contributing to the
decarbonization of hard-to-abate sectors. In this context, this study investigates the feasibility of
green hydrogen production using solar photovoltaic energy in Khenchela, Algeria, through a 3E
concept: Energy, Economy, and Environment.
The proposed system consists of a utility-scale photovoltaic plant directly coupled to a Proton
Exchange Membrane PEM electrolyzer, supported by hydrogen compression and storage units. A
Python-based hourly simulation model was developed and applied over a 25-year project lifetime
using photovoltaic generation data obtained from the System Advisor Model SAM. The analysis
incorporates system operation, hydrogen production, energy curtailment, component replacement,
discounted cash flow modeling, and environmental impact assessment.
The results indicate that the system can produce approximately 15.43 million kg of green hydrogen
over its lifetime, with an average annual production of about 617,000 kg. The electrolyzer operates
with a capacity factor of 34.84%, while the overall solar-to-hydrogen efficiency reaches
approximately 56.3%. The Levelized Cost of Hydrogen LCOH is estimated at 7.68 USD/kg, with
capital expenditures representing the largest cost contribution. Financial analysis shows that project
profitability is achieved only under higher hydrogen selling prices, highlighting the strong influence
of market conditions on economic viability. Sensitivity analysis identifies electrolyzer energy
consumption and capacity factor as the most influential parameters affecting hydrogen production
costs.
From an environmental perspective, the proposed system avoids approximately 390,706 tonnes of
CO₂ emissions over the project lifetime compared with electricity supplied by the Algerian grid.
Overall, the findings confirm the technical feasibility and environmental benefits of solar-based
green hydrogen production in northeastern Algeria, while emphasizing the need for cost reductions
and supportive policies to improve economic competitiveness.