Cost of hydrogen from electrolysis

Cost of hydrogen from electrolysis

Levelized cost of hydrogen and profitability chart

hydrogen, finance

Created by Jesse D. Jenkins, 7/30/20; updated by Jesse D. Jenkins & Wilson Ricks 3/15/23; Shared with no warranty as to accuracy. Use at your own risk.

Note that default assumptions should not be taken as any endorsement of the values by the creator of this tool.

This tool is intended for users to input whatever assumptions they would like and is not meant to constitute any specific analysis or findings.

Assumptions

Electrolysis cost	$1,750	/kW	asset life	10	years

Electrolysis efficiency (HHV)	70%		cost of capital	8.0%	(WACC, real)

Fixed O&M	$87.5	/kW-yr	effective tax rate	0.0%

Calculated values and constants

Electrolysis Annuity + FOM:			Conversion factors:

$348.30	/kW-yr		kWh/kg H2 (HHV)	39.4	MMBtu (HHV)/kg H2	0.13

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)

0.0	$22.38	$11.19	$7.46	$5.59	$4.48	$3.73	$3.20	$2.80	$2.49	$2.24

0.5	$22.66	$11.47	$7.74	$5.88	$4.76	$4.01	$3.48	$3.08	$2.77	$2.52

1.0	$22.94	$11.75	$8.02	$6.16	$5.04	$4.29	$3.76	$3.36	$3.05	$2.80

1.5	$23.22	$12.03	$8.30	$6.44	$5.32	$4.57	$4.04	$3.64	$3.33	$3.08

2.0	$23.51	$12.32	$8.59	$6.72	$5.60	$4.86	$4.32	$3.92	$3.61	$3.36

2.5	$23.79	$12.60	$8.87	$7.00	$5.88	$5.14	$4.60	$4.20	$3.89	$3.65

3.0	$24.07	$12.88	$9.15	$7.28	$6.16	$5.42	$4.89	$4.49	$4.18	$3.93

3.5	$24.35	$13.16	$9.43	$7.56	$6.45	$5.70	$5.17	$4.77	$4.46	$4.21

4.0	$24.63	$13.44	$9.71	$7.85	$6.73	$5.98	$5.45	$5.05	$4.74	$4.49

4.5	$24.91	$13.72	$9.99	$8.13	$7.01	$6.26	$5.73	$5.33	$5.02	$4.77

5.0	$25.19	$14.00	$10.27	$8.41	$7.29	$6.54	$6.01	$5.61	$5.30	$5.05

5.5	$25.48	$14.29	$10.56	$8.69	$7.57	$6.83	$6.29	$5.89	$5.58	$5.33

6.0	$25.76	$14.57	$10.84	$8.97	$7.85	$7.11	$6.57	$6.17	$5.86	$5.62

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)

0.0	$167.01	$83.51	$55.67	$41.75	$33.40	$27.84	$23.86	$20.88	$18.56	$16.70

0.5	$169.11	$85.61	$57.77	$43.85	$35.50	$29.94	$25.96	$22.98	$20.66	$18.80

1.0	$171.21	$87.71	$59.87	$45.95	$37.60	$32.04	$28.06	$25.08	$22.76	$20.90

1.5	$173.31	$89.81	$61.97	$48.05	$39.70	$34.14	$30.16	$27.18	$24.86	$23.00

2.0	$175.41	$91.91	$64.07	$50.15	$41.80	$36.24	$32.26	$29.28	$26.96	$25.10

2.5	$177.51	$94.01	$66.17	$52.25	$43.90	$38.34	$34.36	$31.38	$29.06	$27.20

3.0	$179.61	$96.11	$68.27	$54.35	$46.00	$40.44	$36.46	$33.48	$31.16	$29.30

3.5	$181.71	$98.21	$70.37	$56.45	$48.10	$42.54	$38.56	$35.58	$33.26	$31.40

4.0	$183.81	$100.31	$72.47	$58.55	$50.20	$44.64	$40.66	$37.68	$35.36	$33.50

4.5	$185.91	$102.41	$74.57	$60.65	$52.30	$46.74	$42.76	$39.78	$37.46	$35.60

5.0	$188.01	$104.51	$76.67	$62.75	$54.40	$48.84	$44.86	$41.88	$39.56	$37.70

5.5	$190.11	$106.61	$78.77	$64.86	$56.50	$50.94	$46.96	$43.98	$41.66	$39.80

6.0	$192.21	$108.71	$80.87	$66.96	$58.60	$53.04	$49.06	$46.08	$43.76	$41.90

SUBSIDIZED COST PER KG

PTC	$3.00	/kg

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)

0.0	$19.38	$8.19	$4.46	$2.59	$1.48	$0.73	$0.20	-$0.20	-$0.51	-$0.76

0.5	$19.66	$8.47	$4.74	$2.88	$1.76	$1.01	$0.48	$0.08	-$0.23	-$0.48

1.0	$19.94	$8.75	$5.02	$3.16	$2.04	$1.29	$0.76	$0.36	$0.05	-$0.20

1.5	$20.22	$9.03	$5.30	$3.44	$2.32	$1.57	$1.04	$0.64	$0.33	$0.08

2.0	$20.51	$9.32	$5.59	$3.72	$2.60	$1.86	$1.32	$0.92	$0.61	$0.36

2.5	$20.79	$9.60	$5.87	$4.00	$2.88	$2.14	$1.60	$1.20	$0.89	$0.65

3.0	$21.07	$9.88	$6.15	$4.28	$3.16	$2.42	$1.89	$1.49	$1.18	$0.93

3.5	$21.35	$10.16	$6.43	$4.56	$3.45	$2.70	$2.17	$1.77	$1.46	$1.21

4.0	$21.63	$10.44	$6.71	$4.85	$3.73	$2.98	$2.45	$2.05	$1.74	$1.49

4.5	$21.91	$10.72	$6.99	$5.13	$4.01	$3.26	$2.73	$2.33	$2.02	$1.77

5.0	$22.19	$11.00	$7.27	$5.41	$4.29	$3.54	$3.01	$2.61	$2.30	$2.05

5.5	$22.48	$11.29	$7.56	$5.69	$4.57	$3.83	$3.29	$2.89	$2.58	$2.33

6.0	$22.76	$11.57	$7.84	$5.97	$4.85	$4.11	$3.57	$3.17	$2.86	$2.62

SUBSIDIZED COST PER MMBTU

PTC	$3.00	/kg

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)

0.0	$144.62	$61.12	$33.28	$19.36	$11.01	$5.45	$1.47	-$1.51	-$3.83	-$5.69

0.5	$146.72	$63.22	$35.38	$21.46	$13.11	$7.55	$3.57	$0.59	-$1.73	-$3.59

1.0	$148.82	$65.32	$37.48	$23.57	$15.21	$9.65	$5.67	$2.69	$0.37	-$1.49

1.5	$150.92	$67.42	$39.58	$25.67	$17.31	$11.75	$7.77	$4.79	$2.47	$0.61

2.0	$153.02	$69.52	$41.68	$27.77	$19.41	$13.85	$9.87	$6.89	$4.57	$2.71

2.5	$155.12	$71.62	$43.78	$29.87	$21.52	$15.95	$11.97	$8.99	$6.67	$4.81

3.0	$157.22	$73.72	$45.88	$31.97	$23.62	$18.05	$14.07	$11.09	$8.77	$6.91

3.5	$159.32	$75.82	$47.98	$34.07	$25.72	$20.15	$16.17	$13.19	$10.87	$9.01

4.0	$161.42	$77.92	$50.08	$36.17	$27.82	$22.25	$18.27	$15.29	$12.97	$11.11

4.5	$163.52	$80.02	$52.18	$38.27	$29.92	$24.35	$20.37	$17.39	$15.07	$13.21

5.0	$165.62	$82.12	$54.28	$40.37	$32.02	$26.45	$22.47	$19.49	$17.17	$15.32

5.5	$167.73	$84.22	$56.38	$42.47	$34.12	$28.55	$24.57	$21.59	$19.27	$17.42

6.0	$169.83	$86.32	$58.48	$44.57	$36.22	$30.65	$26.67	$23.69	$21.37	$19.52