Techno-economic analysis of liquefied hydrogen and liquefied natural gas power systems for coastal vessels: Economic feasibility and critical parameters

Abstract

This study evaluates the economic feasibility of liquefied hydrogen (LH2) and liquefied natural gas (LNG) power generation systems for coastal vessels in the 1.3 and 2.2 MW classes. A comprehensive life-cycle cost (LCC) analysis was conducted to determine the conditions under which the LH2 system can become economically competitive relative to the LNG system. Under our initial assumptions, the LNG system exhibited a lower LCC for both vessel classes. Three critical parameters were identified as key to economic competitiveness: the cost of the LH2 power generation system, the cost of LH2 fuel, and the cost of LNG fuel. The analysis further explored scenarios where the LH2 fuel price falls short of the targets set by the Hydrogen Economy Roadmap for 2040, calculating the threshold annual increase in LNG fuel prices based on various LH2-to-LNG system cost ratios. The results indicate that vessels with higher power requirement and greater energy consumption are more likely to achieve economic viability with LH2 power generation systems under comparable LH2 fuel price and system cost conditions. Moreover, for LH2 systems to act as a feasible alternative to LNG systems without relying on policy-driven increases in LNG fuel prices, the LH2 fuel price must meet target levels and LH2 system costs must be reduced to less than twice those of LNG systems. These findings highlight the importance of enhancing the inherent competitiveness of LH2 systems to accelerate their adoption and commercialization. © 2025 Hydrogen Energy Publications LLC