With cheaper hydrogen electrolyzers needed, will China and USA deliver? Will the cost of electrolzers decrease in cost as fast as solar panels dropped? Will Wrights Law apply to electrolysers? China, USA and Europe are focused on reduction of cost for green hydrogen (H2) to under $1/kg.
Marco Polo examines the Chinese production focusing on major Chinese manufacturers who are driving cheaper electrolyzer.
“Gray hydrogen” from fossil fuels dominates the H2 market. Green hydrogen is 3-6x more expensive than gray hydrogen and 6-8x more expensive than methane-based natural gas. The cost of green hydrogen to reach true commercial viability needs to fall from $4-$6/kg to $1/kg to reach parity. (See US Department of Energy Hydrogen page).
What Is An Electrolyzer?
The diagram on MacroPolo on X shows four main types of electrolyzers
- Alkaline,
- Proton exchange membrane (PEM),
- Solid oxide electrolyzers,
- Anion exchange membrane.
Their main differences come down to the type of solution and/or material that ions pass through to produce hydrogen gas.
Cheaper Hydrogen Electrolyzers Increase H2 Use Cases
The importance is reflected in the hydrogen ladder v5 by Michael Liebreich. To compete against biomass as a fuel source for shipping, jet aviation, chemical feedstock, H2 will need to be cheaper. Price and quantity are both factors in a system. E.g. non-road mobile machinery was going to be H2, but now are looking to be electric. (See FMG corporate plans.
