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Cost of hydrogen from electrolysis

Levelized cost of hydrogen and profitability chart - Sourceful

hydrogen, finance

please make a copy of this spreadsheet to edit values

Created by Jesse D. Jenkins, 7/30/20, and shared with no warranty as to accuracy! Use at your own risk

Assumptions

Electrolysis cost $1,000 /kW asset life 15 years

Electrolysis efficiency (LHV) 72% cost of capital 8% (WACC)

Fixed O&M $30 /kW-yr

Note: for a useful discussion of EU hydrogen strategy, see https://www.oxfordenergy.org/wpcms/wp-content/uploads/2020/07/EU-Hydrogen-Strategy.pdf

Electrolysis Annuity + FOM: Conversion factors:

$146.83 /kW-yr kWh/kg H2 33.3 MMBtu/kg H2 0.11

Levelized cost of hydrogen

Utilization rate 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Average cost of electricity cents/kWh "Gate" cost per kg of H2 (prior to transportation, storage, distribution)

0 $5.58 $2.79 $1.86 $1.39 $1.12 $0.93 $0.80 $0.70 $0.62 $0.56

0.5 $5.81 $3.02 $2.09 $1.62 $1.35 $1.16 $1.03 $0.93 $0.85 $0.79

1 $6.04 $3.25 $2.32 $1.86 $1.58 $1.39 $1.26 $1.16 $1.08 $1.02

2 $6.50 $3.71 $2.78 $2.32 $2.04 $1.85 $1.72 $1.62 $1.54 $1.48

3 $6.96 $4.17 $3.24 $2.78 $2.50 $2.32 $2.18 $2.08 $2.01 $1.94

4 $7.42 $4.64 $3.71 $3.24 $2.96 $2.78 $2.64 $2.54 $2.47 $2.41

5 $7.88 $5.10 $4.17 $3.70 $3.42 $3.24 $3.11 $3.01 $2.93 $2.87

Utilization rate 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Average cost of electricity cents/kWh "Gate" cost per MMBtu of H2 (prior to transportation, storage, distribution)

0 $49.12 $24.56 $16.37 $12.28 $9.82 $8.19 $7.02 $6.14 $5.46 $4.91

0.5 $51.16 $26.60 $18.41 $14.32 $11.86 $10.22 $9.05 $8.18 $7.49 $6.95

1 $53.20 $28.63 $20.45 $16.35 $13.90 $12.26 $11.09 $10.21 $9.53 $8.98

2 $57.27 $32.70 $24.52 $20.42 $17.97 $16.33 $15.16 $14.28 $13.60 $13.05

3 $61.34 $36.77 $28.59 $24.49 $22.04 $20.40 $19.23 $18.35 $17.67 $17.12

4 $65.41 $40.84 $32.66 $28.56 $26.11 $24.47 $23.30 $22.42 $21.74 $21.19

5 $69.48 $44.92 $36.73 $32.63 $30.18 $28.54 $27.37 $26.49 $25.81 $25.27

Cost of hydrogen from electrolysis
Info
Tags Hydrogen, Finance
Type Google Sheet
Published 02/08/2020, 01:14:32