Economic considerations for hydrogen production with a focus on polymer electrolyte membrane electrolysis

This Chapter provides an overview of key economic considerations for hydrogen produced from water electrolysis, with the analyses presented here ranging from high-level summaries to detailed considerations of key market and technological drivers. As the electric power sector evolves to account for increasing shares of renewable energy, opportunities are emerging for technologies capable of storing renewable energy in various forms, including as hydrogen. Opportunities for reducing the cost of hydrogen produced from electrolysis include ensuring access to low-cost wholesale electricity, reducing the capital cost of electrolyzers, and development of systems capable of being dispatchable loads without experiencing significant efficiency penalties throughout lifetime. Our analysis indicates that numerous pathways exist for making hydrogen from electrolysis cost-competitive with hydrogen produced from conventional technologies, and significant opportunities exist for research and development to address performance targets for the future electrolysis systems envisioned here.