Demystifying Electrolyzer Production Costs

Renewable hydrogen must achieve dramatic cost reductions[ if it is to compete with existing fossil-fuel-based hydrogen as well as enable new uses. Electrolyzer costs are the biggest cost component of renewable hydrogen production, along with electricity. This article breaks down the primary components of renewable hydrogen production costs at a time when national hydrogen policies are targeting a reduction of overall electrolyzer costs.

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Sweeping statements about the relative costs of renewable hydrogen production methods and potential improvements can be tenuous. Not only are there many kinds of electrolyzers, but complexity in their design, set-up, and operation leads to variations in production costs. The incredible pace of industry innovation behind closed doors and lack of public, up-to-date data also exacerbate this challenge. 

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