Offshore hydrogen production from offshore wind energy is gaining global attention as an appealing solution for scaling up green hydrogen production. The techno economic feasibility of integrating offshore wind into hydrogen production has been explored in various regions, but no comprehensive study exists concerning Saudi Arabia’s offshore wind potential. This work “The Economics of
Offshore Wind-Based Hydrogen Production in Saudi Arabia” by KAPSARC aims to assess the cost-effectiveness of producing hydrogen onshore versus offshore from wind power in the Red Sea.
Via the use of a deterministic cost model, this study evaluates the levelized cost of hydrogen (LCOH) for both configurations. The results show that offshore wind farm costs and floating foundations are the major drivers of capital expenditure (CAPEX). While onshore electrolysis remains slightly less expensive than offshore electrolysis, both configurations require substantial cost reductions to compete with alternative onshore renewable energy sources.
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