Electrolyzer costs are the biggest cost component of renewable hydrogen production, along with electricity. This article breaks down the primary components of renewable hydrogen production costs at a time when national hydrogen policies are targeting a reduction of overall electrolyzer costs.
The largest cost driver in producing renewable hydrogen is the electricity price. Renewable electricity has already become the cheapest source in many countries around the globe and its costs should continue declining over the coming years.
Hysata says its capillary-fed electrolyzer cell slashes that energy cost to 41.5 kWh, smashing efficiency records and lowering green H2 prices.
The higher cost of green hydrogen in comparison to its competitors is the most important barrier to its increased use. Although the cost of renewable electricity is considered to be the key obstacle, challenges associated with electrolysers are another major issue that have important implications for
One of the primary keys to meeting hydrogen cost targets of the future is capitalizing on low-cost electrons made available due to imbalance between grid generation and demand. This is highlighted in the hydrogen cost trend figure below, showing the impact of electricity cost and capital cost.
Efficiency assumptions (lower heating value): SMR without CCS – 76% (2019 and 2050), SMR with CCS – 69% (2019 and 2050): coal without CCS – 60% (2019 and 2050), coal with CCS – 58% (2019 and 2050); electrolysis – 64% (2019) and 74% (2050).
Meeting the Hydrogen Shot clean hydrogen cost target of $1/kg H 2 by 2030 (and interim target of $2/kg H 2 by 2025) through improved understanding of performance, cost, and durability trade-offs of electrolyzer systems under predicted future dynamic operating modes using CO 2-free electricity.
Hydrogen can be produced from polymer electrolyte membrane (PEM) electrolyzers at a cost of ~$5 to $6/kg-H2, assuming existing technology, low volume electrolyzer capital costs as high as $1,500/kW, and grid electricity prices of $0.05/kWh to $0.07/kWh.
The baseline installed PEM electrolyzer capital cost of ~$2,000/kW [in a 2022 dollar-year basis (2022$/kW)] is based on ongoing modeling work within the H2NEW Consortium, has been vetted by domestic electrolyzer manufacturers, and
input accounting for much of the production cost for green hydrogen, falling renewable power costs will narrow the gap. Attention, meanwhile, must shift to the second-largest cost component, electrolysers. This report explores strategies and policies to drive innovation, cut costs for electrolysers and make green hydrogen a least-cost solution