(Invited) Techno-Economic Analysis on Near-Term and Future Projections of Levelized Cost of Hydrogen for Low-Temperature Water Electrolysis Technologies

Abstract

To explore the near-term and future cost projection of hydrogen production via water electrolysis, Strategic Analysis, Inc. (SA) has developed a bottom-up project cost model for Alkaline, Proton Exchange Membrane (PEM), and Anion Exchange Membrane (AEM) electrolysis technologies. This project cost model incorporates: 1) Stack cost, derived from a Design for Manufacture and Assembly (DFMA) process-based cost model; 2) mechanical balance of plant (BOP) cost; 3) electrical BOP cost; 4) site preparation cost; and 5) construction overhead cost. The SA project cost model results are fed into the Hydrogen Analysis (H2A) model to estimate the Levelized Cost of Hydrogen (LCOH), accounting for electricity and water consumption, in addition to other operating costs. The SA project cost model and the H2A model were used to conceptualize electrolysis system sizes from 100 MW to 1 GW. SA conducted operating point optimization to determine the current density and cell voltage that minimizes LCOH for each system. The expected LCOH for a grid-fed electrolyzer plant is similar for all major low-temperature water electrolysis systems.