Economics and potential application of electrolytic hydrogen in the next decades

Abstract

Abstract The demand for hydrogen will increase within the next decades mainly due to the necessity of producing clean and environmentally accepted fuels from fossil hydrocarbon resources of minor quality and from coal. The use of electrolytic hydrogen is limited by the economics of its production which is dominated by the cost of the electrical energy necessary for water splitting. The potential for cost reductions by the application of new electrolysis technologies is investigated and break-even electricity prices are calculated at which electrolytic hydrogen can compete with hydrogen produced from fossil fuels. Although in general electrolytic hydrogen production is not yet competitive, there are good prospects for advanced, highly efficient processes (e.g. the electrolysis of steam) to be developed within the next decades. Small and medium hydrogen production plants of this type might be competitive soon, and they are attractive if the oxygen by-product and the environmental advantages are taken into account.