The Brazilian energy grid is considered as one of the cleanest in the world, because it is composed of more than 80% of renewable energy sources. This work aimed to apply the levelized costs (LCOH) and environmental cost accounting techniques to demonstrate the feasibility of producing hydrogen (H₂) by alkaline electrolysis powered by the Brazilian energy grid. A project of hydrogen production, with a lifetime of 20 years, had been evaluated by economical and sensitivity analysis. The production capacity (8.89 to 46.67 kg H₂/h), production volume (25 to 100%), hydrogen sale price (1 to 5 USD/kg H₂) and the MAR rate were varied. Results showed that at 2 USD/kg H₂, all H₂ production plant sizes are economically viable. On this condition, a payback of fewer than 4 years, an IRR greater than 31, a break-even point between 56 and 68% of the production volume and a ROI above 400% were found. The sensitivity analysis showed that the best economic condition was found at 35.56 kg H₂/h of the plant size, which generated a net present value of USD 10.4 million. The cost of hydrogen varied between 1.26 and 1.64 USD/kg and a LCOH of 37.76 to 48.71 USD/MWh. LCA analysis showed that the hydrogen production project mitigated from 26 to 131 thousand tons of CO₂, under the conditions studied.

Background: This study applied levelized cost of hydrogen (LCOH) and environmental cost accounting techniques to evaluate the feasibility of producing green hydrogen (GH₂) via alkaline electrolysis for use in a bus fleet in Fortaleza, Brazil. Methods: A GH₂ plant with a 3 MW wind tower was considered in this financial project. A sensitivity analysis was conducted to assess the economic viability of the project, considering the influence of production volume, the number of electrolysis kits, financing time, and other kay economic indices. Revenue was derived from the sale of by-products, including green hospital oxygen (GHO₂) and excess wind energy. A life cycle assessment (LCA) was performed to quantify material and emission flows throughout the H₂ production chain. A zero-net hydrogen price scenario was tested to evaluate the feasibility of its use in urban transportation. Results: The production of GH₂ in Brazil using alkaline electrolysis powered by wind energy proved to be economically viable for fueling a hydrogen-powered bus fleet. For production volumes ranging from 8.89 to 88.9 kg H₂/h, the sensitivity analysis revealed high economic performance, achieving a net present value (NPV) between USD 19.4 million and USD 21.8 million, a payback period of 1–4 years, an internal rate of return (IRR) of 24–90%, and a return on investment (ROI) of 300–1400%. The LCOH decreased with increased production, ranging from 56 to 25 USD/MWh. Over the project timeline, GH₂ production and use in the bus fleet reduced CO₂ emissions by 53,000–287,000 t CO₂ eq. The fuel cell bus fleet project demonstrated viability through fuel cost savings and revenue from carbon credit sales, highlighting the economic, social, and environmental sustainability of GH₂ use in urban transportation in Brazil.