Business Model Development for a High-Temperature (Co-)Electrolyser System

Abstract

There are increasing international efforts to tackle climate change by reducing the emission of greenhouse gases. As such, the use of electrolytic hydrogen as an energy carrier in decentralised and centralised energy systems, and as a secondary energy carrier for a variety of applications, is projected to grow. Required green hydrogen can be obtained via water electrolysis using the surplus of renewable energy during low electricity demand periods. Electrolysis systems with alkaline and polymer electrolyte membrane (PEM) technology are commercially available in different performance classes. The less mature solid oxide electrolysis cell (SOEC) promises higher efficiencies, as well as co-electrolysis and reversibility functions. This work uses a bottom-up approach to develop a viable business model for a SOEC-based venture. The broader electrolysis market is analysed first, including conventional and emerging market segments. A further opportunity analysis ranks these segments in terms of business attractiveness. Subsequently, the current state and structure of the global electrolyser industry are reviewed, and a ten-year outlook is provided. Key industry players are identified and profiled, after which the major industry and competitor trends are summarised. Based on the outcomes of the previous assessments, a favourable business case is generated and used to develop the business model proposal. The main findings suggest that grid services are the most attractive business sector, followed by refineries and power-to-liquid processes. SOEC technology is particularly promising due to its co-electrolysis capabilities within the methanol production process. Consequently, an “engineering firm and operator” business model for a power-to-methanol plant is considered the most viable option.