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0 CAPEX
OPEX Capex Subsidy
Electricity costs Grid costs Energy Arbitrage Total LCOH
Increase Decrease Total
Fig . 2 . LCOH breakdown ( in EUR / kg ) for base-case electrolyser ( 25 %) with combined interventions
and transportation concerns . In practice , many electrolyser technologies cannot safely operate at low minimum loads or need market strategies to account for ramp-up and ramp-down rates .
It represents small electrolysers typical for pilot projects before 2030 , crucial for paving the way for larger ones . Future projects are expected to have lower CapEx due to technology advancements and economies of scale . The study explores variableprice PPAs , feasible for subsidised renewables , but future projects will likely use unsubsidised sources with fixed price agreements . However , even in these setups , flexibility and access to energy markets offer a wider decision space , and therefore higher potential to lower energy costs .
For this to happen , government intervention is needed to bridge the cost gap to grey hydrogen . A regulatory framework aligned with subsidies is required to incentivise flexibility and enable appropriate infrastructure for import , storage , and transport , such as the fast deployment of the hydrogen backbone for a constant hydrogen supply .
With sufficient hydrogen infrastructure , electrolyser flexibility could be taken even further : not as a way to improve hydrogen project profitability , but as a standalone business case with the purpose of grid balancing and facilitating renewable energy rollout . It would use inexpensive surplus energy and balancing services and produce hydrogen as a byproduct . This case , however , assumes there is value in curtailed energy and that providing intermittent demand for it would benefit the system .
For more details on the study , see : https :// www . battolysersystems . com / white-paper
About Battolyser Systems
Battolyser Systems is a cleantech scale-up that develops and manufactures an electrolyser with battery capacity , the Battolyser ® . When there is lots of solar or wind power , a Battolyser can convert electricity to green hydrogen , and when there is not enough , it can give renewable energy back to the grid . A Battolyser enables renewable energy system integration and ‘ unlocks 100 % green hydrogen ’ using only abundant and sustainable materials .
Hydrogen Tech World | Issue 18 | October 2024 15