DEVELOPING AND VALIDATING COMPREHENSIVE INDICATORS TO EVALUATE THE ECONOMIC EFFICIENCY OF HYDROGEN ENERGY INVESTMENTS

Global hydrogen projects' Capital Expenditure (CAPEX) and Operating Expenditure (OPEX) are examined for financial viability and technological advancement. This study monitors market growth, policy changes, and technological advances that affect project performance and sustainability. Research...

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Main Authors: Galevskiy S. G., Haidong Qian
Format: Article
Language:English
Published: Regional Association for Security and crisis management, Belgrade, Serbia 2024-09-01
Series:Operational Research in Engineering Sciences: Theory and Applications
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Online Access:https://oresta.org/menu-script/index.php/oresta/article/view/801
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author Galevskiy S. G.
Haidong Qian
author_facet Galevskiy S. G.
Haidong Qian
author_sort Galevskiy S. G.
collection DOAJ
description Global hydrogen projects' Capital Expenditure (CAPEX) and Operating Expenditure (OPEX) are examined for financial viability and technological advancement. This study monitors market growth, policy changes, and technological advances that affect project performance and sustainability. Research employs life cycle cost analysis (LCCA) using five regions of China (Beijing, Shanghai, Guangdong, Sichuan, Zhejiang), market analysis, financial modelling, and sensitivity. For at least 50 hydrogen energy projects worldwide, LCCA was conducted using R and Python software and spreadsheets estimate installation, maintenance, and energy costs. Market analysis using leading databases and industry reports estimates hydrogen market penetration and demand over a decade. We use financial modelling software to create detailed cash flow models. Discount rates, hydrogen prices, CAPEX, OPEX, capacity utilization, policy changes, and carbon pricing schemes affect investment efficiency, according to sensitivity analysis. Surveys and interviews with industry experts, policymakers, and stakeholders contextualize and validate quantitative findings. Financial analysis of 50 hydrogen energy projects shows significant CAPEX and OPEX variation, requiring cost management and customized financial planning. The study emphasizes policy frameworks and technology for project efficiency and market growth. Strategic financial planning and risk mitigation are needed because sensitivity analysis shows how discount rates, hydrogen prices, and capacity utilization affect project viability. Finally, hydrogen energy projects need supportive policies and technology. Regulation and regional disparities persist. Technology can solve these problems and boost hydrogen energy sector growth and low-carbon futures. For sustainable, low-carbon energy, the research helps investors, policymakers, and stakeholders make informed decisions, optimize resource allocation, and promote hydrogen energy projects.
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spelling doaj-art-dce27bb40fe34fd3b972619a7b0afd052025-08-20T03:05:30ZengRegional Association for Security and crisis management, Belgrade, SerbiaOperational Research in Engineering Sciences: Theory and Applications2620-16072620-17472024-09-0173DEVELOPING AND VALIDATING COMPREHENSIVE INDICATORS TO EVALUATE THE ECONOMIC EFFICIENCY OF HYDROGEN ENERGY INVESTMENTSGalevskiy S. G.0Haidong Qian1Department of Industrial Economics, Saint Petersburg Mining University, Russia, 199106.Department of Industrial Economics, Saint Petersburg Mining University, Russia, 199106. Global hydrogen projects' Capital Expenditure (CAPEX) and Operating Expenditure (OPEX) are examined for financial viability and technological advancement. This study monitors market growth, policy changes, and technological advances that affect project performance and sustainability. Research employs life cycle cost analysis (LCCA) using five regions of China (Beijing, Shanghai, Guangdong, Sichuan, Zhejiang), market analysis, financial modelling, and sensitivity. For at least 50 hydrogen energy projects worldwide, LCCA was conducted using R and Python software and spreadsheets estimate installation, maintenance, and energy costs. Market analysis using leading databases and industry reports estimates hydrogen market penetration and demand over a decade. We use financial modelling software to create detailed cash flow models. Discount rates, hydrogen prices, CAPEX, OPEX, capacity utilization, policy changes, and carbon pricing schemes affect investment efficiency, according to sensitivity analysis. Surveys and interviews with industry experts, policymakers, and stakeholders contextualize and validate quantitative findings. Financial analysis of 50 hydrogen energy projects shows significant CAPEX and OPEX variation, requiring cost management and customized financial planning. The study emphasizes policy frameworks and technology for project efficiency and market growth. Strategic financial planning and risk mitigation are needed because sensitivity analysis shows how discount rates, hydrogen prices, and capacity utilization affect project viability. Finally, hydrogen energy projects need supportive policies and technology. Regulation and regional disparities persist. Technology can solve these problems and boost hydrogen energy sector growth and low-carbon futures. For sustainable, low-carbon energy, the research helps investors, policymakers, and stakeholders make informed decisions, optimize resource allocation, and promote hydrogen energy projects. https://oresta.org/menu-script/index.php/oresta/article/view/801Hydrogen EnergyFinancial ViabilityTechnological AdvancementsMarket AnalysisPolicy Frameworks
spellingShingle Galevskiy S. G.
Haidong Qian
DEVELOPING AND VALIDATING COMPREHENSIVE INDICATORS TO EVALUATE THE ECONOMIC EFFICIENCY OF HYDROGEN ENERGY INVESTMENTS
Operational Research in Engineering Sciences: Theory and Applications
Hydrogen Energy
Financial Viability
Technological Advancements
Market Analysis
Policy Frameworks
title DEVELOPING AND VALIDATING COMPREHENSIVE INDICATORS TO EVALUATE THE ECONOMIC EFFICIENCY OF HYDROGEN ENERGY INVESTMENTS
title_full DEVELOPING AND VALIDATING COMPREHENSIVE INDICATORS TO EVALUATE THE ECONOMIC EFFICIENCY OF HYDROGEN ENERGY INVESTMENTS
title_fullStr DEVELOPING AND VALIDATING COMPREHENSIVE INDICATORS TO EVALUATE THE ECONOMIC EFFICIENCY OF HYDROGEN ENERGY INVESTMENTS
title_full_unstemmed DEVELOPING AND VALIDATING COMPREHENSIVE INDICATORS TO EVALUATE THE ECONOMIC EFFICIENCY OF HYDROGEN ENERGY INVESTMENTS
title_short DEVELOPING AND VALIDATING COMPREHENSIVE INDICATORS TO EVALUATE THE ECONOMIC EFFICIENCY OF HYDROGEN ENERGY INVESTMENTS
title_sort developing and validating comprehensive indicators to evaluate the economic efficiency of hydrogen energy investments
topic Hydrogen Energy
Financial Viability
Technological Advancements
Market Analysis
Policy Frameworks
url https://oresta.org/menu-script/index.php/oresta/article/view/801
work_keys_str_mv AT galevskiysg developingandvalidatingcomprehensiveindicatorstoevaluatetheeconomicefficiencyofhydrogenenergyinvestments
AT haidongqian developingandvalidatingcomprehensiveindicatorstoevaluatetheeconomicefficiencyofhydrogenenergyinvestments