Vision of Offshore Energy Hub at Faroe Islands: The Market Equilibrium Impact

Marianne Petersen*, Elisabeth Andreae, Iva Ridjan Skov, Frederik Dahl Nielsen, Shi You, Aidan Cronin, Henrik Bach Mortensen

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

13 Downloads (Pure)

Abstract

This study examines the integration of an offshore wind farm and green hydrogen production as a strategy to enhance the Faroe Islands' energy independence and reduce its carbon footprint. Utilizing the EnergyPLAN tool and market economic simulations, including Levelized Cost of Hydrogen and Net Present Value calculations, the research evaluates the economic viability and environmental impact of transitioning to renewable energy sources by 2030. The analysis explores various scenarios, ranging from dedicated offshore wind for in-turbine hydrogen production to platform-based electricity and hydrogen distribution. Results indicate that integrating offshore wind with green hydrogen production can significantly reduce CO2 emissions and dependency on imported fossil fuels. However, financial viability hinges on supportive mechanisms such as investment subsidies. The study's findings suggest that achieving economic feasibility requires strategic policy frameworks. This research contributes to the discourse on sustainable energy planning by offering insights into the dynamics of system integration, market economic simulations, and the role of support mechanisms in facilitating the green transition.</p>
Original languageEnglish
JournalInternational Journal of Sustainable Energy Planning and Management
Volume40
Pages (from-to)115-130
Number of pages16
ISSN2246-2929
DOIs
Publication statusPublished - 2024

Keywords

  • Faroe Islands
  • Offshore wind
  • Hydrogen
  • EnergyPLAN
  • Market economy simulations

Fingerprint

Dive into the research topics of 'Vision of Offshore Energy Hub at Faroe Islands: The Market Equilibrium Impact'. Together they form a unique fingerprint.

Cite this