The Green Hydrogen Revolution: Our Path to $1/kg

Imagine a world where a clean, sustainable and inexpensive fuel could be used to heat our homes, power our cars and keep our industries humming. This might not be as far-fetched as it sounds. Welcome to the age of green hydrogen. At Firstgreen, we are keen on promoting the dream of green hydrogen as an affordable, sustainable fuel source. The key to this revolution is achieving a cost target of $1/kg, a goal which is now within our grasp thanks to recent advances in technology.

The Magic of Electrolysis

Electrolysis is the mainstay of hydrogen production. This process uses electricity and an electrolyte or membrane to split water into hydrogen and oxygen. There are three main technologies in this space - alkaline, PEM (proton exchange membrane), and solid oxide electrolyzer cells (SOECs).

While alkaline processes have been around for over a century, it's the PEM electrolyzers that are stealing the limelight. They can operate effectively at a range of loads with sub-second response times, which makes them particularly compatible with variable energy sources, such as solar and wind power.

SOECs, on the other hand, are not as commercialized but hold a lot of promise. They utilize a ceramic electrolyte at high temperatures, and their high electrical efficiency makes them cost-effective in scenarios where high-temperature heat is available, such as from nuclear power plants and concentrated solar power.

The Roadmap to $1/kg

According to the U.S. National Clean Hydrogen Strategy and Roadmap, the cost of clean electricity accounts for over half of the cost of hydrogen production from electrolysis. Therefore, reducing the cost of clean electricity (renewables, nuclear power) is one of the first steps towards our $1/kg goal.

To hit this target, we need to dramatically lower capital costs, lower energy costs, increase efficiencies, and improve durability and reliability to reduce maintenance costs. A significant portion of these cost reductions will come from declines in electrolyzer capital expenditure by the end of the decade.

The Numbers Game

Based on the DOE's H2A model, the 2020 baseline cost of hydrogen was around $5/kg, considering a $1,500/kW for PEM electrolyzer capital cost (at low volume manufacturing), a $50/MWh electricity price, and a capacity or utilization factor of 90 percent.

To achieve $2/kg by 2026 (as required by the BIL), we would need to reduce the energy costs to $30/MWh and the capital costs to $300/kW. To get to the dream of $1/kg, the energy and capital costs would have to be cut further to $20/MWh and $150/kW, respectively.

It should be stressed that these are just illustrative scenarios. Other combinations of cost, efficiency, electricity prices, utilization factors, and durability could also enable us to meet the $1/kg goal.

Next-Generation Electrolyzers

In 2020, the Department of Energy (DOE) launched the H2NEW consortium, bringing together national labs, industry, and academia, to drive forward the development of next-generation electrolyzers. This collaboration is likely to catalyze further cost reductions and improvements in efficiency, which could help bring us closer to the $1/kg green hydrogen.

In conclusion, green hydrogen is set to be a cornerstone of the sustainable economy of the future. At Firstgreen, we believe that the path to $1/kg green hydrogen is not just a possibility but an imminent reality. The combination of technology advancements, cost reductions, policy support, and industry collaboration points to a bright future for this green fuel. With continued innovation and investment, a world powered by green hydrogen is just around the corner. Join us as we embark on this exciting journey towards a more sustainable future.