Hydrogen-based Power Generation from Flare Gas for Rural Electrification: A Techno-economic Evaluation
Keywords:
Flare gas, Hydrogen production, PEM fuel cell, Renewable energy, Rural electrification, Techno-economic analysisAbstract
Gas flaring remains one of the major environmental and economic challenges associated with crude oil production in developing countries, particularly in Nigeria. This study presents a techno-economic analysis of converting flared gas into electricity using a proton exchange membrane (PEM) fuel cell system for rural electrification. Field data obtained from OML companies in the Niger Delta Flow Stations revealed an average flared gas volume of 10.506 MMSCF/day with a methane concentration of 86.2%. Steam methane reforming (SMR) was employed to convert methane into hydrogen for electricity generation using a 1 MW PEM fuel cell model developed in MATLAB/Simulink. Technical performance indicators and economic metrics such as annual energy yield, levelized cost of electricity (LCOE), net present value (NPV), and payback period (PBP) were evaluated. Results indicate that the system can generate approximately 352.96 GWh annually with an LCOE of $0.0206/kWh, annual revenue of $15.53 million, and a payback period of 2.3 years. Environmental analysis further showed a daily CO₂ emission reduction of approximately 883,350 kg through diesel displacement. The findings demonstrate that flare-gas-to-electricity systems are technically feasible, economically profitable, and environmentally sustainable for rural electrification in gas-flaring regions.
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