How to Estimate Feasible CAPEX vs. OPEX for a 500 Nm3/hr Hydrogen Generation Plant

How to Estimate Feasible CAPEX vs. OPEX for a 500 Nm3/hr Hydrogen Generation Plant

The growing demand for green hydrogen necessitates cost-effective design and operation of hydrogen generation plants. This article provides an in-depth analysis of estimating Capital Expenditures (CapEx) and Operational Expenditures (OpEx) for a hydrogen generation plant with a capacity of 500 Nm3/hr using bipolar electrolysis technology.

?? Key Plant Details

• Technology: Water electrolysis (bipolar)
• Capacity: 500 Nm3/hr (2 skids of 250 Nm3/hr each)
• Hydrogen Purity: 99.99%
• Pressure: 30–32 kg/cm2 (generation), regulated to 3–6 kg/cm2
• Storage: For Unit: 2 × 15 m3 vessels For Unit: 1 × 10 m3 vessel
• Major Equipment: Electrolysers, rectifiers, purifiers, DM water plant, buffer tanks, cooling tower, fire protection system.

?? Understanding CapEx

What is CapEx?

CapEx involves the initial investment required to procure, install, and commission physical assets for the plant.

Components of CapEx for Hydrogen Generation Plant

1. Electrolyser System (Bipolar Electrolysis)
2. Water Treatment System (DM Water Plant)
3. Hydrogen Storage System
4. Oxygen Storage System
5. Hydrogen Purification System
6. Cooling Tower System
7. Fire Protection and Safety Systems
8. Electrical and Automation Systems
9. Piping, Valves, and Accessories
10. Civil and Structural Work

Estimated Total CapEx: Rs. 350–400 lakh

?? Understanding OpEx

What is OpEx?

OpEx refers to the recurring costs of operating and maintaining the hydrogen generation plant.

Components of OpEx for Hydrogen Generation Plant

1. Electricity Costs
2. Water Consumption
3. Maintenance Costs
4. Manpower Costs
5. Insurance and Miscellaneous Costs

Estimated Total OpEx: Rs. 180–200 lakh/year

?? Cost-Benefit Analysis

Revenue Potential

• Hydrogen Sale Price: Rs. 300–350/kg.
• Annual Hydrogen Production: 500 Nm3/hr × 24 hrs × 330 days = 39.6 lakh Nm3/year. 1 Nm3 ≈ 0.0899 kg → 3.56 lakh kg/year.
• Annual Revenue: 3.56 lakh kg × Rs. 300 = ~Rs. 1068 lakh/year.

Profitability Analysis

• Annual Gross Margin: Revenue - OpEx Rs. 1068 lakh - Rs. 200 lakh = ~Rs. 868 lakh/year.
• Payback Period: CapEx ÷ Gross Margin Rs. 400 lakh ÷ Rs. 868 lakh = ~4.6 years.

?? Key Insights for Cost Optimization

1. Energy Efficiency:
2. Water Recycling:
3. Advanced Maintenance:
4. Automation:

?? Hashtags

#GreenHydrogen #HydrogenEconomy #CapExVsOpEx #RenewableEnergy #HydrogenGeneration #ElectrolysisTechnology #SustainableDevelopment #IndustrialAutomation