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2. ELECTROLYSER TECHNOLOGY CHARACTERISATION GREEN HYDROGEN COST REDUCTION The electrolyser is composed of the stack (where the actual splitting of water into hydrogen and oxygen takes place) and the balance of plant, which comprises power supply, water supply and purification, compression, possibly electricity and hydrogen buffers and hydrogen processing. Both components are important for the cost, since they have similar cost shares. The largest potential for near term cost reduction is in this balance of plant, while RD&D is required to reduce stack cost and increase its performance and durability, as trade offs among these are significant. The flexibility of alkaline and PEM stacks is enough to follow fluctuations in wind and solar. The flexibility of the system is limited, however, by the balance of plant (e.g. the compressors) rather than the stack. Furthermore, flexibility in the very short term time scales involved (i.e. sub-second) is not the key value proposition for electrolysers, as their key system value lies in bulk energy storage. This effectively decouples variability of generation from stability of hydrogen and power to X (PtX) demand through hydrogen storage in gas infrastructure (e.g. salt caverns, pipelines) and liquid e-fuels storage. There is no single electrolyser technology that performs better across all dimensions. The future technology mix will depend on innovation and competition among key technologies and manufacturers, leading to technological improvements and a better fit for different technologies and system designs in each specific application. Water and land use do not represent barriers to scaling up. In places with water stress, the source of water for hydrogen production should be explicitly considered in the strategies and further elaborated in project planning. Where access to sea water is available, desalination can be used with limited impact on cost and efficiency, potentially deploying multi-purpose desalination facilities to provide local benefits. A 1 GW plant could occupy about 0.17 square kilometres (km2) of land, which means 1000 GW of electrolysis would occupy an area equivalent to Manhattan (New York). Improving the performance of the electrolyser stack in one dimension usually goes along with reduced performance in other parameters (efficiency, cost, lifetime, mechanical strength and manufacturing). This leads to trade offs to be tackled through innovation in materials and manufacturing, leading to a set of specific system designs tailored to different applications in the future. Potential breakthroughs in technology development can be disruptive in terms of accelerating cost reductions for the stack, while for the balance of plant, it is more about economies of scale, standardisation of design and supply chains, and learning-by-doing. 26 KEY POINTSPDF Image | GREEN HYDROGEN SCALING UP ELECTROLYSERS
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