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Green hydrogen cost reduction. Scaling up electrolysers to meet the 1.5 C climate goal

2020

665.8/I66g

978-92-9260-295-6

Electrolyser technology characterisation. Strategies for cost reduction: stack level. Strategies for cost reduction: system level. Green hydrogen project pipeline. The road to scaling up green hydrogen: a milestone-driven approach. Conclusions and role for multiple stakeholders in scaling up.

The largest single cost component for on-site production of green hydrogen is the cost of the renewable electricity needed to power the electrolyser unit. This renders production of Green hydrogen more expensive than blue hydrogen, regardless of the cost of the electrolyser. A low cost of electricity is therefore a necessary condition for producing competitive Green hydrogen. This creates an opportunity to produce hydrogen at locations around the world that have optimal renewable resources, in order to achieve competitiveness. As more countries pursue deep decarbonisation strategies, hydrogen will have a critical role to play. This will be particularly so where direct electrification is challenging and in harder-toabate sectors, such as steel, chemicals, long-haul transport, shipping and aviation. In this context, hydrogen needs to be low carbon from the outset and ultimately green (produced by electrolysis of water using renewable electricity). Low electricity cost is not enough by itself for competitive green hydrogen production, however, and reductions in the cost of electrolysis facilities are also needed. This is the second largest cost component of green hydrogen production and is the focus of this report, which identifies key strategies to reduce investment costs for electrolysis plants from 40% in the short term to 80% in the long term. These strategies range from the fundamental design of the electrolyser stack to broader system-wide elements.

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