As the world shifts toward a more sustainable and environmentally-friendly energy landscape, green hydrogen is emerging as a promising alternative to traditional fossil fuels. Produced using renewable energy sources such as solar and wind power, green hydrogen offers a clean and sustainable energy solution. In this blog, we will delve into the levelized cost of producing 1 kg of green hydrogen using a Proton Exchange Membrane (PEM) electrolyzer powered by solar energy. We will examine the costs, efficiency factors, and calculations to provide a comprehensive understanding of the economics behind green hydrogen production.
PEM Electrolyzers and Green Hydrogen
PEM electrolyzers use a Proton Exchange Membrane to split
water molecules into hydrogen and oxygen through an electric current. These
electrolyzers are renowned for their efficiency, compact size, and high-purity
hydrogen production capabilities.
For our analysis, we will consider the following parameters:
- Electrolyzer
capital cost: $1100 per kW
- Efficiency:
80%
- Electrolyzer
life: 10 years
- Solar
energy cost: $30 per MWh
- O&M
cost: 2.5% of the capital cost
Calculating the Levelized Cost of Green Hydrogen
We will follow these steps to determine the levelized cost
of producing 1 kg of green hydrogen:
Step 1: Calculate the total capital cost, including O&M
costs, over the lifetime of the electrolyzer
Annual O&M cost = 0.025 * $1100 = $27.5 per kW per year
Total O&M cost over 10 years = $27.5 * 10 = $275 per kW Total capital cost
including O&M costs = $1100 + $275 = $1375 per kW
Step 2: Determine the amount of electricity required to
produce 1 kg of green hydrogen
Energy required = (1 kg H2 * 39.4 kWh/kg H2) / 0.8 = 49.25
kWh/kg H2 (rounded to two decimal places)
Step 3: Convert the solar energy cost from $/MWh to $/kWh
Cost per kWh = $30 / 1000 kWh = $0.03 per kWh
Step 4: Calculate the total cost of electricity required to
produce 1 kg of green hydrogen
Electricity cost for 1 kg H2 = 49.25 kWh/kg H2 * $0.03/kWh =
$1.4775
Step 5: Determine the annualized capital cost
Annualized capital cost per kW = $1375 per kW / 10 years =
$137.5 per kW per year
Step 6: Calculate the annualized capital cost per kg of
green hydrogen
Assuming 1 kW of electrolyzer capacity runs 24 hours a day,
365 days a year: Annual energy production per kW = 1 kW * 24 hours/day * 365
days/year = 8760 kWh Annual hydrogen production per kW = (8760 kWh * 0.8) /
39.4 kWh/kg H2 = 178.0687 kg H2 (rounded to four decimal places)
Annualized capital cost per kg H2 = $137.5 per kW per year /
178.0687 kg H2 per kW per year = $0.7722 per kg H2 (rounded to four decimal
places)
Step 7: Compute the levelized cost of producing 1 kg of green
hydrogen
Levelized cost per kg H2 = Electricity cost for 1 kg H2 +
Annualized capital cost per kg
= $1.4775 + $0.7722 = $2.2497 per kg H2
Conclusion
Currently, the approximate levelized cost of producing 1 kg
of green hydrogen using a PEM electrolyzer and solar energy is approximately
$2.25. This figure accounts for both the capital and operational costs of the
electrolyzer and the electricity required for hydrogen production. As the costs
of renewable energy and electrolyzer technology continue to decline, green
hydrogen is becoming an increasingly viable alternative to fossil fuels. By
understanding the levelized cost of green hydrogen production, we can make
informed decisions about investing in the infrastructure necessary to support a
sustainable energy future.