Techno-economic analysis (TEA) of green hydrogen

Techno-Economic Analysis · Discounted Cash Flow + Project Finance · Model v7.1.0 · Methodology v3.33

Reference case— the documented reference case of the frozen methodology (§9), precomputed; not your analysis and not the form's defaults.

Project: PEM · Southern Europe · 10 MW · 900 €/kW · BoP 30% · electricity 40 €/MWh · 4000 h/year · 20-year life · WACC 7% nominal.

Commercial & financing: H₂ sold at €5/kg with 80% offtake and 2%/yr escalation · O₂ revenue €0/yr · 60% debt at 5% over 15 years · tax 25% · 15-year depreciation · 18-month construction.

At €5.00/kg against a €5.42/kg breakeven, this case does not clear its cost of capital — the tool is showing you exactly where the gap is.

Solved with model v7.1.0, methodology v3.31. Change the parameters and press Calculate TEA to run your own project.

LCOH

€4.74/kg H₂

NPV

-€2.3M

Equity IRR

4.1%

Project IRR

4.5%

Equity IRR

4.1%

NPV

-€2.3M

Payback

17 yr

Breakeven

€5.42/kg

Min DSCR

1.01

Avg DSCR

1.34

LCOH

€4.74/kg

€4.02/kg in constant money

Lifetime

20 yr

These figures are estimates for preliminary analysis only and do not constitute financial, investment or engineering advice.

How the techno-economic analysis works

The techno-economic analysis (TEA) starts from the same inputs as the LCOH and adds revenue and financing: the hydrogen selling price, offtake and price escalation, oxygen revenue, the debt share, interest rate and tenor, tax, depreciation and the construction period.

It returns the project NPV, the project and equity IRR, the payback period and the metrics a lender reads, such as the minimum DSCR and the LLCR, year by year over the project life. Monte Carlo then runs 10,000 iterations over the uncertain inputs and gives the P10–P90 range of each result.

Frequently asked questions

Which minimum DSCR does the platform use as a reference?

Its screening reference is a minimum DSCR of 1.30x. A lender’s covenant may differ, and it can be declared in the analysis.

How can I use the TEA?

The techno-economic analysis, its PDF report and Monte Carlo are available at no cost through our pilot programme, with limited places.

Does a low LCOH mean the project is viable?

Not on its own. A project can have a competitive LCOH and still fail to repay its debt if the selling price, the offtake or the financing structure do not hold. That is what the TEA measures.

The methodology, step by step → · Free plan and pilot programme →