Abstract
The global energy transition necessitates the defossilisation of the energy-intensive industry and hard-to-abate transport sectors, where direct electrification falls short due to limitations in energy density. Electricity-based fuels and chemicals (e-fuels and e-chemicals) emerge as a viable alternative, offering high energy density and compatibility with existing infrastructure. However, their production hinges on access to vast amounts of low-cost renewable electricity, a challenge for regions with limited land. This study explores wave power as an underexplored source for e-fuel production, focusing on regions with exceptional wave energy: New Zealand, Chile, and Ireland. Using energyHub-LUT, a newly developed optimisation model, the research evaluates the techno-economics of wave power, alongside solar photovoltaics and wind power, for producing e-fuels and e-chemicals. The results show that wave power supplies more stable power for e-fuel production compared to onshore wind power and solar photovoltaics, cutting the need for batteries by 25-100%, depending on location. Chile produces the lowest cost e-fuels when wave power is integrated alongside solar photovoltaics and onshore wind power, thanks to over 7000 full load hours, but its higher capital expenditures render it less competitive than onshore renewable energy. The study concludes that wave power's economic viability is limited even in regions with very high full load hours but also highlights its potential as an alternative where land scarcity hinders large-scale renewable energy projects or in cases of near baseload direct electricity need.