Green hydrogen, derived from electrolysis, plays a pivotal role in transitioning hard-to-electrify sectors towards cleaner energy sources. Power-to-X (PtX or P2X) and green hydrogen investors and developers assumed industry costs would reduce merely by expanding electrolyser manufacturing capacity and scaling deployment.
So why are optimistic capital expenditure (CAPEX) projections not yet materialising?
In the whitepaper, Achieving affordable green hydrogen production plants, we propose an effective framework for understanding future cost reductions in renewable energy technologies.
In the whitepaper, you will discover:
  1. Where to focus CAPEX reduction efforts within green hydrogen electrolysis facilities using our framework
  2. How to do this by addressing stack, system, and plant level technology challenges
  3. The feasibility of forecasted cost declines required to scale the industry to reach 2030-2050 goals
  4. Which opportunities could accelerate green hydrogen production deployment
The missing link to electrolyser success: Degree of design complexity
Companies are realising green hydrogen production capital expenditures are higher than predicted. Higher costs are partly attributed to cyclical macro issues such as inflation, interest rates, and supply chain disruptions. However, we find higher costs are also attributed to differences between hypothetical green hydrogen production system designs compared to real-life production systems with local operational constraints.
Many companies assumed expanding electrolyser capacity would trigger CAPEX reductions as seen in the photovoltaics (PV) or battery markets over the past decades. Electrolyser stacks exhibit similar characteristics, so companies expect similar stories around sustained, double-digit CAPEX cost declines with green hydrogen technologies too.
However, real-life green hydrogen production systems are more intricate and customised than those represented to create the original CAPEX reduction estimates from international organisations. In fact, most green hydrogen production CAPEX costs are outside of the stack itself. The interconnections between the plant and surrounding water, electricity, and offtake systems vary significantly by region too—further increasing the degree of project complexity and customisation.
Unlocking cost reductions by overcoming technology challenges
In the whitepaper, you can explore how cost reduction initiatives are progressing at the stack, system, and plant level. Our experts discuss the key electrolysis stack technologies—including Alkaline Electrolysis (AE), Proton Exchange Membrane (PEM), and Solid Oxide Electrolysis Cell (SOEC)—as well as demonstrate the progress toward key priorities at the stack level:
  • Reducing stack footprint: Less space or materials for the same unit of output
  • Material replacements: Reduce loading factors of the most expensive critical minerals
  • Improving reaction efficiency: Less energy or waste per unit of production
  • Lengthening lifetime: Reduce degradation, build-up of reaction-limiting agents
However, stack-level cost reductions alone cannot reduce production plant CAPEX costs to anticipated levels from public international organisations’ estimates. You must give more attention to reducing costs outside of the stack, at the system and plant levels, to realise ambitious production, industry, and country goals. We provide recommendations for how to reduce costs at the stack, system, and plant level to achieve forecasted CAPEX cost declines.
Chart a realistic course for green hydrogen outcomes
To achieve cost reductions, access to cheaper renewable energy is vital. Yet to trim CAPEX and overall costs, it is also important to understand and prioritise addressing tangible production nuances and intricacies.
Whether considering policies, partnerships, or development strategies, you must embrace an updated perspective and real-world data to determine what reduces green hydrogen production plant CAPEX.
Download the whitepaper to dive deeper into the challenges and opportunities in reducing CAPEX in green hydrogen production.

Download whitepaper


Want to know more?

  • Ethan Doyle

    Senior Manager

    +1 703-516-2315

    Ethan Doyle
  • Elizabeth Krasowski

    Project Manager

    +1 908-337-7375

    Elizabeth Krasowski