Updated Hydrogen Costings
JUNE 10, 2024
By Paul Homewood
The cost of producing and installing electrolysers for green hydrogen production in China, the US and Europe — three of the world’s biggest markets — has risen by more than 50% compared to last year, research house BloombergNEF (BNEF) has found, rather than the gradual reduction its analysis had previously indicated.
The main culprit for Western manufacturers has been inflation, which has pushed up the costs of materials, utilities (such as water and electricity) and labour in the US and Europe, said BNEF in its new report, Electrolyser Price Survey 2024.
As a result, average system-level cost (including both stack and balance of plant) is now at a mid-range of $600/kW for an electrolyser made in China, while machines made in Europe or the US are around $2,500/kW.
This makes Western electrolysers four times more expensive than Chinese equivalents, a gap that has not closed at all since the previous report, BNEF noted.
The research house had previously predicted that costs would gradually decline over three years from 2022, as more large-scale projects approached completion.
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