TechnoeconomicViability of On-Farm Hydrogen Production:A Comparative Study of the Netherlands and Australia

Abstract

Abstract Decarbonizing the energy system requires new applications for green hydrogen produced via electrolysis, especially in high-emission sectors. This study investigates the technoeconomic feasibility of off-grid on-farm hydrogen production integrated with intermittent renewables in Australia and the Netherlands, focusing on how diverse farming activities influence energy demand and system economics. Energy demand profiles from two commercial case studies, an arable farm in Mensingeweer, Netherlands, and a dairy farm in Tasmania, Australia, reveal a profound divergence in economic performance driven by farm-specific net load profiles and localized supply chain maturity. The optimized Dutch system, benefiting from a highly complementary wind-solar resource mix, achieves a Levelized Cost of Hydrogen (LCOH) of 8.5 USD/kg (€7.75/kg). In contrast, the intense, non-smooth demand spikes characteristic of the studied Australian dairy operation require a massive energy buffer, resulting in a substantially higher baseline optimized LCOH of 36.2 USD/kg (AU$54.87/kg). This variation is attributed to differences in farm-specific energy demand profiles, influencing the required hydrogen storage capacity. Furthermore, system component costs were around 66% higher in the Australian market. The analysis underscores the need for demand-side management strategies to optimize the storage capacity and reduce LCOH.