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Box 1. A brief look at the historical development of electrolysers 2nd generation (1950-1980): This generation was defined by a polymer chemistry breakthrough achieved in the last few years of the previous generation. In 1940, Dupont discovered a material that had both excellent thermal and mechanical stability, as well as ionic properties (meaning good transport properties for protons). This was the basis for PEM electrolysers. PEM cells could be easily fed with pure water, instead of caustic solutions, as in alkaline systems, which provided a considerable reduction of system complexity, footprint, higher efficiencies and power densities. General Electric was one of the pioneers in developing PEM electrolysers, later joined by Hamilton Sundstrand in the United States and Siemens and ABB in Germany. Deployment and learning for PEM electrolysers were mainly driven by spaceship programs (e.g. Gemini) and military life-support applications in submarines. 3rd generation (1980-2010): With the space race over, other business opportunities had to be found for PEM electrolysers. This required drastically simplifying the design, decreasing the cost and increasing the scale of the stacks to a few hundred kW. A higher system efficiency, lower capital costs and durability beyond 50 000 hours were the result of these changes. On the alkaline side, large units coupled to hydro-power plants had to be re designed to much smaller pressurised stacks, in order to introduce these into applications with less demand for hydrogen. 4th generation (2010-2020): Three trends characterise this generation. First, PV and wind installed capacity grew over 14 and 3 times respectively over this period, with costs dropping by 82%, 47% and 39% for PV, onshore wind and offshore wind, respectively (IRENA, 2020a). This made electricity, the main cost-component for green hydrogen, much cheaper, improving the business case for green hydrogen. Second, there has been the central role that climate change has taken in the political agenda. This has created support for decarbonising sectors other than power. Third, is the ever increasing capacity of advanced electrolyser stacks, leading to lower capital expenditure (CAPEX) for electrolysers, allowing green hydrogen to move up the energy policy agenda. 5th generation (post-2020): This period is expected to take electrolysis from niche to mainstream, from MW to GW scale, from potential to reality. The goals for this period include a lower (< USD 200/kW) cost, high durability (> 50 000 hours) and a high (approaching 80% LHV) efficiency. This will require economies of scale, a larger manufacturing capacity and technological breakthroughs through research. 30 GREEN HYDROGEN COST REDUCTIONPDF Image | GREEN HYDROGEN SCALING UP ELECTROLYSERS
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