Investigating Renewable Hydrogen Costs at Producer's Terminal Gate with Alkaline Electrolyser, Proton Exchange Membrane, and Their Co-Installment: A Regional Case Study in China

Abstract

China has taken the lead in deploying large-scale electrolytic hydrogen production using alkaline (ALK) and proton exchange membrane (PEM) electrolysers, ranging from tens to hundreds of megawatts. However, installing these hydrogen production systems often faces challenges across China. They are overbuilt to handle intermittent electricity supply from solar or wind power, leading to frequent system shutdowns, wasted capacity, or extensive investment. In this work, we propose a co-optimization solution in which ALK and PEM electrolysers are collocated alongside hybrid renewable electricity (RE) supply from solar and wind power sources. Implementing such a strategy could achieve the lowest hydrogen costs at producer’s terminal gate, with production levelized costs of hydrogen (PLCOHs) down to 5.05, 4.13, 3.89, and 5.46 USD per kg respectively in south, north, west, and east regions of China (versus 6.36, 4.27, 5.09, and 7.02 USD per kg relying on single PEM technology). Prioritizing advancements in ALK technologies would further enhance this co-installation approach, potentially obtaining PLCOHs as low as 3.22 and 3.25 USD per kg respectively in the north and west regions. Compared to single electrolysers facing existing challenges, the co-optimization strategy leverages the strengths of both ALK and PEM systems, advancing cost-effective hydrogen production powered by intermittent renewables.

Keywords: Green hydrogen, Renewable electricity, Alkaline water electrolyser, Proton exchange membranes, Optimization, Hydrogen Economy