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GREEN HYDROGEN COST REDUCTION Looking beyond the stack to include the balance of plant, there are two main strategies to reduce the cost: „Increasing the manufacturing scale of the plant. This allows reducing the cost contribution of each component by performing a high throughput, automated manufacturing operation. This includes, for example, rolltoroll manufacturing of the catalystcoated membrane (for PEM) and advanced coating processes for metal plates (Mayyas et al., 2019). „ Learning-by-doing. This relates to standardisation, applying lessons learned from deployment and optimising the installation of equipment through the execution of multiple projects. These two effects are not independent, since increasing the global cumulative deployment is expected to be linked to an increase in global manufacturing capacity. Nevertheless, applying both concepts separately allows us to draw different insights into the drivers of lower production costs. 4.1 MANUFACTURING SCALE OF ELECTROLYSERS Increasing the manufacturing scale of the electrolyser plants can have a positive impact on their specific cost. Large manufacturing volumes can decrease the cost contribution of buildings, improve the utilisation of equipment (i.e. increasing the volume produced from each unit and reducing the cost contribution) and improve the process yield (reducing losses). Furthermore, for low volumes, manual assembly might be necessary, while higher volumes make automatic assembly attractive. These economies of scale during manufacturing have been assessed in the past for PEM (NREL, 2019). Figure 27 shows the system cost for producing 1-MW units. Two aspects to note are: the annual production rate where most of the cost benefits have been achieved; the cost categories that do not change significantly with the production rate and dominate the cost, even at high volumes. Figure 27. Cost breakdown for PEM electrolysers as a function of manufacturing scale (units of 1 MW per year). Note: Costs include material, labour, capital, energy, maintenance, buildings and scrap costs. Source: Mayyas et al., 2019. 74PDF Image | GREEN HYDROGEN SCALING UP ELECTROLYSERS
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