How different electrolyser technologies impact hydrogen prices

Our experts Marisú Mangino Rivas, Fei Wu, and Ksenia Tolstrup guide you through the world of electrolysers. What are the advantages and disadvantages of the 3 main electrolyser technologies: AEC, PEM, SOE? How do they affect the costs of hydrogen and its potential revenue streams?

Hydrogen costs can vary +40% among electrolyser technologies

Renewable hydrogen can be produced using 3 main electrolyser technologies – AEC, PEM, and SOEC – with their hydrogen costs varying by as much as 44%. Let’s walk through their unique advantages and disadvantages, which can impact the cost of hydrogen and potential revenue streams, as two of the main factors behind renewable hydrogen prices.

Figure 1. Cost projects for renewable hydrogen per technology.

Key factors driving hydrogen costs per electrolyser

AEC and PEM are more mature technologies with longer lifetimes and have 3 to 6 times lower CAPEX and/or OPEX costs than SOEC. However, SOEC has outstanding efficiencies, at 20-30% higher than the others, which brings it up to par.

Table 1. Ranking of key performances per hydrogen technology

Electrolysers can potentially provide a broad range of system services

Prices and investment decisions for each type depend not only on hydrogen cost, but also on its potential use cases and additional revenue streams, e.g. grid balancing services. While the extent of their impact on the final hydrogen price remains unclear and is likely to vary by country, it is an important consideration when evaluating the business case for hydrogen.

Table 2. System service roles for hydrogen per technology

Helping or hindering hydrogen’s business case?

• AEC and PEM electrolysers have lower techno-economic costs, but SOEC’s highest efficiency ensures its competitiveness. Ultimately, the specific use case will determine which electrolyser can yield the lowest hydrogen prices.
• Electrolysers are expected to obtain some of their revenue from providing different network and system services, which can help offset the currently high costs of hydrogen.
• Different electrolyser technologies are a key driver of hydrogen costs. However, there are other aspects to consider, especially electricity cost, operational hours, etc.

More about this topic? Learn about our work in MosaHYc, a pioneering cross-border hydrogen project. Or reach out to our experts to find out more.