Hydrogen Production Cost from Proton-Conducting Solid Oxide Electrolysis

Abstract

Rigorous stakeholder-vetted techno-economic analysis (TEA) was conducted to estimate the cost of hydrogen (H 2 ) production using Proton-Conducting Solid Oxide (PSO) electrolysis. The analysis evaluates Current (2025) and Future (2035) technology cases at centralized plant scales of 50 and 500 metric tonnes per day (MTD), assuming electricity, water, and air as the only system inputs. Untaxed, unsubsidized levelized cost of hydrogen (LCOH) is projected to range from 2020 $\$$1.81 to $\$$2.47/kg H 2 at an electricity price of $\$$0.03/kWh and 97% capacity factor under Nth-of-a-kind (NOAK) deployment assumptions. Total installed capital cost was developed using bottom-up Design for Manufacture and Assembly (DFMA) stack cost modeling and detailed balance-of-plant estimates, including mechanical and electrical subsystems, installation, site preparation, engineering, and contingency. Stack performance assumptions include thermoneutral operation, degradation over time, and periodic replacement. LCOH was calculated using the Hydrogen Analysis (H2A) discounted cash flow model in constant 2020 dollars. Results indicate PSO electrolysis has potential for competitive hydrogen production costs under low-cost electricity and mature manufacturing conditions.