Hydrogen Tech World October 2023 | Page 20

[ electrolysis ]

5,600

CAPEX [$/ kW ] High Range

2,800

AE PEM SOEC

the absence of large-scale manufacturing for these electrolyzers and the need for expensive raw materials to withstand high-temperature operation .

The high costs associated with SOECs can be attributed to several key factors . Firstly , SOECs require specialized high-temperature materials , which can be inherently expensive . Additionally , when compared to more mature technologies like PEM and AE , SOEC is relatively less developed , resulting in a steeper cost curve .

Even though the capital costs are currently estimated to be high , a high learning rate is estimated to be applied due to innovation in the technology itself . This high learning rate is estimated to reduce costs to USD 500 – 1,000 per kW by 2050 . As mentioned above , these innovations are expected to involve the development of less costly materials for electrodes and membranes , as well as economies of scale in the manufacturing processes ( for example , the development of larger stack sizes ). These high learning rates will depend on deployed capacity over time . As the technology matures and becomes more widely adopted , the industry can look forward to more competitive pricing , making SOECs a compelling option in the realm of green hydrogen production .

Application fit

SOECs carve out a unique and promising niche in the realm of high-temperature applications . Their ability to utilize steam as a high-temperature heat source opens up many use cases , particularly in sectors like nuclear energy , solar thermal , steel , and geothermal operations . Additionally , SOEC systems align seamlessly with processes like the Fischer- Tropsch method , where waste heat can be harnessed to generate steam for electrolysis .

A 2018 study by the Union of Concerned Scientists shed light on the profitability

20 Hydrogen Tech World | Issue 12 | October 2023