Hydrogen utilization for decarbonizing the dairy industry: A techno-economic scenario analysis

This study investigates the integration of on-site green hydrogen as a substitute for methane in steam generation in the dairy industry, specifically in the production of Parmigiano Reggiano cheese. This represents a novel application of green hydrogen in industrial dairy processing, with the potential to reduce greenhouse gas emissions. Hydrogen is assumed to be generated via electrolysis powered by photovoltaic energy. A comprehensive techno-economic assessment was conducted, with simulations covering key design variables such as hydrogen fraction in steam production, photovoltaic panel orientation, and storage pressure. A wide range of scenarios was defined in order to account for variability in system structures and performance, and a comprehensive economic assessment was then carried out using a Monte Carlo simulation approach and a sensitivity analysis. Results indicate that, in all scenarios, the net present value over a 15-year period remains negative when benefits are limited to methane savings. Indeed, the high capital expenditure associated with hydrogen systems presents a major barrier. The most favorable cases occur at low hydrogen shares with seasonal storage, while full conversion to hydrogen maximizes CO2 abatement but is least economical. With public funding, the emissions saved per euro of public support range from 1.58 to 2.14 kg CO2eq/€.