Techno-Economic Assessment of Electrolytic Hydrogen Production under Dynamic Operations

Abstract

Green hydrogen has an important role to play in the future decarbonized world as it has the potential to decarbonize many sectors of the economy. Proton Exchange Membrane (PEM) electrolysis is one of the production pathways for green hydrogen. This study uses a techno-economic optimization model that combines a high-level electrolyzer model and a cost model to evaluate the current (2021) and future (2040) economics of running a PEM electrolyzer under various operating conditions, including dynamic operations and differential-pressure operations. The results show that dynamic operation can reduce the levelized cost of hydrogen (LCOH) by 9% compared to steady operation at a nominal current density. Using direct electrochemical compression without the need for a mechanical compressor is an economically viable solution in the future, while a hybrid approach is preferred in the current scenario. Finally, the LCOH projections show that continued efforts to reduce the capital cost, improve the electrolyzer performance, and integrate more low-cost renewables into the electricity market are necessary for green hydrogen to reach cost-parity with hydrocarbon-based hydrogen.