Technological advancements expected to further reduce green hydrogen costs
Technological advancements expected to further reduce green hydrogen costs primarily revolve around improvements in electrolyser technology, scale-up of manufacturing, and integration with cheaper renewable electricity. Key factors include:
1. Electrolyser Technology Improvements
- Anion Exchange Membrane (AEM) Electrolysers: Successful commercialization of AEM electrolysers and fuel cells is anticipated to lower production costs due to higher efficiency and potential for reduced capital costs.
- Alkaline vs. Proton Exchange Membrane (PEM) Electrolysers:
- Alkaline electrolysers are mature, durable, use relatively inexpensive materials, and support larger stacks, but have higher minimum load limits, making them less efficient with intermittent renewables.
- PEM electrolysers have lower minimum load requirements and faster ramping, better suited for renewables, but currently cost 50-60% more and rely on expensive components with supply chain challenges.
- Increasing the base size of the electrolysis stack, which involves the core cell units and transport layers, can significantly reduce costs since stacks constitute 40-50% of system costs.
2. Cost Reduction Through Scale and Learning
- Electrolyser capital costs are expected to decline by over 40% by 2030 due to manufacturing scale-up and technological learning, similar to historical cost reductions seen in solar PV technologies.
- Cost reductions of up to 60% by 2030 are projected through combined effects of manufacturing scale, learning rate improvements, technological advances, and larger electrolyser modules.
- Increasing deployment at scale allows for further cost reductions through economies of scale and learning effects.
3. Cheaper Renewable Electricity
- The cost of electricity is a critical driver; green hydrogen production costs are heavily dependent on access to low-cost renewable electricity (around $20/MWh) to be competitive with other hydrogen types.
- Integration of battery energy storage systems (BESS) alongside renewable sources can stabilize electricity supply, improving electrolyser efficiency and cost-effectiveness.
4. Increased Efficiency and Optimized Operation
- Enhanced electrolyser efficiency and optimized operational strategies (such as better load management and integration with intermittent renewables) contribute to lowering the levelized cost of hydrogen.
In summary, advancing electrolyser technologies (especially AEM and PEM), scaling up production sizes, lowering capital costs through manufacturing improvements, securing cheaper renewable power, and integrating energy storage and optimization measures are the main technological pathways expected to drive significant green hydrogen cost reductions over the next decade and beyond.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-technological-advancements-are-expected-to-further-reduce-green-hydrogen-costs/
