Submitted:
29 December 2025
Posted:
31 December 2025
Read the latest preprint version here
Abstract

Keywords:
I. Introduction
- A unified technical comparison of all major hydrogen production routes based on efficiency, environmental impact, and technology readiness.
- Development of a quantitative performance model for a 100-kW solar-powered water electrolysis system using realistic PV and electrolyzer assumptions.
- Analysis of round-trip efficiency, highlighting the implications of hydrogen reconversion to electricity.
- Evaluation of solar hydrogen potential in Iran, considering climatic factors such as high irradiance, dust, and water scarcity.

| Reference | Unified comparison | 100 kW-scale modeling | Round-trip efficiency | Iran-specific analysis |
|---|---|---|---|---|
| [11] (2023) | Yes | No | No | No |
| [12] (2024) | Yes | No | No | No |
| [13] (2025) | Partial | No | Partial | No |
| This work | Yes | Yes | Yes | Yes |
II. Hydrogen Production Technologies
A. Fossil-Based Pathways
B. Renewable-Based Pathways
- Alkaline Electrolysis (AEC):
- Proton Exchange Membrane (PEM):
- Solid Oxide Electrolysis (SOE):
C. Emerging and Novel Routes
- Biological (e.g., dark/photo-fermentation, microbial electrolysis):
- Photocatalytic:

| Main Cost Driver |
TRL
(2025) |
Direct CO₂
(kg/kg H₂) |
Efficiency (LHV, %) |
Pathway |
|---|---|---|---|---|
| Natural gas | 9 | 8–12 | 70–85 | Grey SMR |
| CCS + gas | 8 | 0.5–4.5 | 65–80 |
BlueSMR + CCS |
| Electricity | 9 | 0 | 62–75 | Alkaline Electrolysis (AEC) |
| PEM Electrolysis | 65–82 | 0 | 9 | Electrolyzer CAPEX |
| Solid Oxide Electrolysis (SOE) | 75–90* | 0 | 6–7 | High-temperature materials |
| Biomass Gasification | 35–55 | ≈0† | 6–8 | Feedstock logistics |
| Thermochemical Cycles (solar/nuclear) | 45–55 | 0 | 3–5 | High-temperature reactors |
| Biological / Photocatalytic | 1–25 | 0 | 1–4 | Very low productivity |
III. System Modeling and Performance Evaluation

| Parameter | Value | Justification / Source |
|---|---|---|
| PV system capacity | 100 kWₚ | Nominal DC rating for small-scale off-grid demonstration [21] |
| Performance ratio (PR) | 0.85 | Typical fixed-tilt in sunny climates (dust-adjusted for Iran) [4,30] |
| Electrolyzer system efficiency (η_elz, LHV) | 70 % (47 kWh/kg H₂) | Mid-range commercial PEM/AEC 2025; realistic range 65–80 % [25,27,29] |
| Hydrogen LHV | 33.3 kWh/kg (120 MJ/kg) | Standard thermodynamic value [21] |
| Fuel cell system efficiency (η_FC, H₂ → AC) | 40 % | System-level incl. compression & BOP (Toyota Mirai Gen2 ≈ 40 %, Ballard 38–42 %) [20,23] |
| Peak sun hours (PSH) range | 3.5 – 5.5 kWh/kW/day | Europe (low) to Iran (high, DNI 5.2–5.4 kWh/m²/day) [13,14] |
| Electrolyzer CAPEX (2025) | 600 – 800 USD/kW | Down from >1000 USD/kW in 2023; IRENA/Bloomberg NEF projection [15,19] |
| Annual degradation (average) | 1.5 %/year | PV 0.5 %/yr + electrolyzer stack 1 %/yr [30] |
| System availability | 95 % | Typical for well-maintained systems |
| Parameter | Value | Justification / Source |
|---|---|---|
| PV system capacity | 100 kWₚₚ | Nominal DC rating |
| Performance ratio (PR) | 0.85 | Typical for fixed-tilt systems in sunny climates (IRENA 2024, NREL 2024) |
| Electrolyzer system efficiency | 70 % (LHV) | Mid-range commercial PEM/AEC 2024–2025 (49–52 kWh/kg H₂ → 70 % at 33.3 kWh/kg LHV) |
| Performance ratio (PR) | 0.85 | Typical for fixed-tilt systems in sunny climates (IRENA 2024, NREL 2024) |
| Electrolyzer system efficiency | 70 % (LHV) | Mid-range commercial PEM/AEC 2024–2025 (49–52 kWh/kg H₂ → 70 % at 33.3 kWh/kg LHV) |
| Hydrogen LHV | 33.3 kWh/kg (120 MJ/kg) | Standard value |
| Fuel cell system efficiency (H₂ → AC electricity) | 40 % | Realistic system-level (including compression, inversion, BOP); PEMFC commercial 2025 (Toyota Mirai Gen2 ~40 %, Ballard/Plug Power stationary 38–42 %) |
| Peak Sun Hours (PSH) range | 3.5 – 5.5 kWh/kW/day | Covers moderate to excellent locations (e.g., Central Europe → Central/Southern Iran) |
| Parameter | Value (2025) | Projection 2030 | Source / Justification |
|---|---|---|---|
| PV system cost | 650 USD/kWₚ | 400 USD/kWₚ | BloombergNEF 2025, IRENA 2025 |
| Electrolyzer CAPEX (PEM/AEC average) | 700 USD/kW | 450 USD/kW | IRENA 2025 high-case, BNEF Q4 2025 |
| Desalination + water transport | 0.7–1.1 USD/m³ | 0.5–0.8 USD/m³ | Saudi NEOM & UAE projects scaling |
| O&M (PV + electrolyzer + desalination) | 1.8 % of CAPEX/yr | 1.5 % of CAPEX/yr | IEA 2025, IRENA |
| Weighted average cost of capital (WACC) | 7 % (real) | 6.5 % | Typical for renewable projects in Middle East 2025 |
| System lifetime | 25 years | – | Standard for LCOH studies |
| Replacement of electrolyzer stack | Every 10 years (80 000 h) | – | Manufacturer data 2025 |
IV. Challenges, System Integration, and Deployment Prospects for Solar-Driven Green Hydrogen in Iran
4.1. Technical and Integration Challenges
- Electrolyzer durability and dynamic operation: Commercial PEM and alkaline stacks in 2025 typically achieve 65–80 % LHV efficiency, but frequent start–stop cycles and partial-load operation under direct PV coupling accelerate catalyst and membrane degradation. High ambient temperatures in Iran (>45 °C in summer) further increase cooling demand and can shorten stack lifetime if active thermal management is not implemented.
- Balance-of-plant losses: Water deionization, gas drying, and compression to 30–200 bar consume 8–12 % of input electricity, often underestimated in early studies.
4.2. Water Availability – The Critical Constraint in Arid Regions
4.3. Economic and Policy Barriers in Iran
- Absence of carbon pricing and subsidies on natural gas keep grey hydrogen (SMR) below 1.5 USD/kg, while current green H₂ LCOH in Iran remains 4.5–6.5 USD/kg.
- Limited long-term power purchase agreements (PPAs) and currency risk deter international financing.
- Electrolyzer and high-purity component imports face sanctions-related delays and 30–50 % cost premiums.
4.4. Future Prospects and Recommended Pathways for Iran
- Hybrid solar–wind configurations in coastal (wind) + desert (solar) corridors) to raise electrolyzer capacity factor from ~25 % (solar-only) to >45 %.
- Co-location with existing industrial clusters (Bandar Abbas, Assaluyeh, and Isfahan refineries) to utilize waste heat, cooling water, and pipeline infrastructure.
- Ammonia as export carrier: Iran already possesses large ammonia/urea plants; green ammonia synthesis from solar H₂ can leverage existing port and shipping infrastructure.
-
Policy recommendations
- ○
- Introduce feed-in tariffs or Contracts-for-Difference (CfD) for green hydrogen/ammonia.
- ○
- Establish national low-carbon hydrogen certification and guarantees of origin.
- ○
- Create “Green Hydrogen Valleys” in high-resource, water-constrained provinces with mandatory solar desalination integration.
4.5. Rationale for the Two-Phase Green Hydrogen Valley Deployment Strategy in Southern Iran
- Solar–Wind Hybrid Resource Complementarity
- 2.
- Proximity to Existing Industrial and Export Infrastructure
- 3.
- Water and Hydrogen Transport Economics
- 4.
- Risk-Managed, Phased Scaling Strategy

4.6. Conclusion on Iranian Context
V. Results and Discussion
5.1. Hydrogen Production Performance of the 100 kW Solar-Powered System
5.2. Round-Trip Efficiency and Implications for Energy Storage

5.3. Comparative Performance Against Other Pathways
5.4. Sensitivity Analysis
- Dust-induced soiling: Without cleaning, annual yield can drop 20–25 % in central Iran → LCOH increase of 0.8–1.2 USD/kg. Automated cleaning or bifacial modules with vertical mounting reduce this penalty to <8 %. · Ambient temperature: Every 10 °C above 25 °C reduces PV output by ~4 % and increases electrolyzer cooling demand → combined penalty of 6–8 % in summer peaks (>45 °C). · Electrolyzer CAPEX: A reduction from 800 to 500 USD/kW (IRENA high-case 2030) lowers LCOH by ~1.1 USD/kg at PSH = 5.3. · Hybrid solar–wind input: Increasing capacity factor from 25 % (solar-only) to 45 % reduces LCOH by 35–40%.
- To further quantify cost uncertainties, we conducted a ±20% sensitivity on electrolyzer CAPEX and solar electricity price (LCOE ~0.03 USD/kWh base). Using the base LCOH of 3.80 USD/kg (for 100 kW system), results are as follows (reproducible via Python script in Supplementary Material S1):
| Parameter Variation | LCOH (USD/kg) | Change from Base (%) |
|---|---|---|
| Base Case | 3.80 | - |
| Electrolyzer CAPEX +20% | 4.18 | +10% |
| Electrolyzer CAPEX -20% | 3.43 | -10% |
| Solar Electricity Price +20% | 4.11 | +8% |
| Solar Electricity Price -20% | 3.49 | -8% |
5.5. Water–Energy Nexus and Coastal Desalination Integration
5.6. Levelized Cost of Hydrogen (LCOH) Analysis and Regional Benchmarking

| Scenario (Location) | Capacity | Capacity Factor | Water Strategy | LCOH 2025 | LCOH 2030 |
|---|---|---|---|---|---|
| 100 kWₚoff grid (central Iran, inland) | 100 kW | 24 % | Trucked freshwater | 5.8–6.4 | 4.4–5.1 |
| 10 MW coastal (Persian Gulf) | 10 MW | 26 % | PV-RO desalination | 4.6–5.2 | 3.3–3.9 |
| 100 MW hybrid solar wind (south coast) | 100 MW | 45–52 % | PV-RO + wind desalination | 4.1–4.8 | 3.0–4.0 |
| Gigawatt-scale hydrogen valley (2030 vision) | ≥1 GW | >55 % | Large-scale RO + pipeline | – | 1.9–2.4 |
| Parameter | Iran (Coastal Hybrid + Solar Desalination) | Saudi Arabia (NEOM Phase I) | Advantage |
|---|---|---|---|
| Average Peak Sun Hours (PSH) | 5.3–5.5 kWh/kW/day | 5.1–5.3 kWh/kW/day | Iran |
| Hybrid solar–wind capacity factor | >45 % | 35–40 % | Iran |
| Projected LCOH (2030) | 3.0–4.0 USD/kg | 3.2–4.0 USD/kg | Iran |
| Desalination water cost | 0.6–0.9 USD/m³ (solar RO) | >1.2 USD/m³ | Iran |
| Existing ammonia export infrastructure | Yes (world’s 2nd largest exporter) | Under construction | Iran |
| Domestic skilled technical workforce | Proven (>20 years, >848 trained) | Heavily expatriate-dependent | Iran |
| Geopolitical/export risk | Medium–High | Low | Saudi Arabia |
| Start of commercial production | 2028–2030 (phased) | 2026–2027 | Saudi Arabia |

VI. Conclusion
- Establishment of "Green Hydrogen Valleys" along the Persian Gulf and Gulf of Oman with mandatory integration of solar/wind-powered desalination,
- Introduction of feed-in tariffs or Contracts-for-Difference for green hydrogen and ammonia,
- Development of a national low-carbon hydrogen certification and guarantee-of-origin system,
- Removal of fossil fuel subsidies and introduction of carbon pricing to level the playing field.
Supplementary Materials
Declaration of Competing Interest
Data Availability Statement
Appendix A: Reproducible Python Script


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