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Manufacturing Cost Analysis for PEM Electrolyzers and Perspectives for Future Cost Reduction

Electrolyzer capital costs strongly influence the total levelized cost of hydrogen production and have implications for hydrogen deployment. Current electrolyzer costs are high, and large cost reductions may be needed to achieve competitive hydrogen costs and targets. Understanding pathways for cost reduction via R&D and deployment is a critical research area for informed energy planning and enabling hydrogen use. This work presents bottom-up cost estimates of polymer electrolyte membrane (PEM) electrolyzer systems tied to design specifications and discusses perspectives for cost reduction opportunities based on ongoing research. We use a detailed manufacturing and process model for a 1 MW PEM electrolyzer stack and balance of plant (BOP) for rigorous cost estimation. This allows for robust estimates of component and manufacturing costs and examination of key cost contributors. Stack costs are dominated by material costs such as iridium and platinum catalysts, especially at high manufacturing rates; power electronics and hydrogen purification equipment are the largest contributors to BOP cost. At higher manufacturing rates, better equipment utilization could reduce stack costs significantly, and we estimate that experience and bulk purchasing will allow for cost reductions to some BOP components. Still, many well-established BOP technologies and stack material costs are less likely to see significant cost reductions at high manufacturing rates. As such, manufacturing scale is limited in how much it can reduce electrolyzer costs, and additional advances for cost reduction may be needed to achieve cost targets. It will likely take many combined strategies to achieve significant cost reductions for electrolyzers and enable low-cost hydrogen production. We can use our manufacturing cost model to quantify potential cost reductions from the considerations described above and demonstrate pathways to lower cost electrolyzers. This allows for better understanding of cost reduction strategies and enables more informed research, development, and deployment for electrolyzers.

cost

Uncertainty Quantification and Sensitivity Analysis of Nuclear Construction Cost Reduction Pathways

High construction costs have plagued recent nuclear projects and they hamper the widespread deployment of nuclear technology. The Nuclear Cost Reduction Tool is a plant economic framework that quantifies the impact that various plant design and construction attributes have on construction costs and cost overruns and shows the positive effects of learning over a series of deployments. However, a downside of the current model is that all model outputs and capabilities are deterministic. To provide a more comprehensive view, this study evaluated the impact of model parameter uncertainty through a sensitivity analysis applied to 18 model parameters. This approach quantified the impact of model uncertainty on the output variables of Net Overnight Capital Cost (Net OCC), Construction Duration (CD), and Levelized Cost of Electricity (LCOE). Monte Carlo analysis revealed uncertainty distributions for these variables, showing that absolute uncertainty decreases over a series of deployments. A local sensitivity analysis showed that even small parameter perturbations (5%) can have a significant impact on project execution, highlighting areas that could reduce costs by billions across an order book of plants. The results of this study have improved the understanding of the model and identified the most impactful model parameters and construction attributes.

Levelized Cost of Electricity

Quantifying Capital Cost Reduction Pathways for Advanced Nuclear Reactors

The framework developed in this study is provided both as an excel sheet (https://inl.gov/content/uploads/2023/11/Nuclear-Reactor-Cost-Reduction-Pathway-Spreadsheet-Tool.xlsx) and a Python (Jupyter) Notebook (link: https://github.com/accert-dev/ACCERT/tree/main/Cost%20Reduction). Capital cost considerations are one of the primary inhibitors to the large-scale deployment of nuclear power plants. While it is widely accepted that first units will likely be expensive and relatively uncompetitive, it is reasonable to expect that subsequent units, built in relative quick succession, will be cheaper as they benefit from the so-called “learning effects”. However, the large degree of uncertainty associated with this parameter renders it challenging for first movers to invest in the first few expensive units. To resolve this impasse, the U.S. Department of Energy’s Advanced Nuclear Liftoff study advocated for the formation of large, committed order books of plants of the same technology to spread the costs across several units and kickstart the nuclear supply chain. The study also advocated best practices for avoiding overruns and keeping reactors on budget. This report builds on these key recommendations by attempting to quantify specific pathways toward cost reduction for nuclear energy. A capital cost estimation framework was built to untangle the effect of learning into a subset of key cost drivers, referred to as “levers”. Collectively, the choice of these levers is intended to reflect the decision-making of high-level stakeholders like plant owners and the government. In addition to the size of the firm orderbook, these levers included (a) cost drivers that are most often attributed to cost overruns such as architect/engineering (A/E) proficiency, construction proficiency, procurement service proficiency, design completion prior to the start of construction, and design maturity, and (b) cost reduction strategies such as modular construction, cross-site standardization, safety classification of the reactor building, and of the balance of plant. Two advanced reactor designs were leveraged as use cases and bottom-up cost estimates made with assumptions consistent with a well-executed first-of-a-kind project (WE-FOAK, i.e., almost no overruns) were used as baselines for the models. Cost correlations were surveyed from the literature to determine the impact of important variables on projected timelines and costs.

22 GENERAL STUDIES OF NUCLEAR REACTORS

Potential Fuel Cycle Cost Reductions of Once Through HALEU Reactors

This report looks to identify potential cost reduction opportunities for SFR and HTGR reactors using HALEU fuel. This analysis focuses on how learning rates and experience from other industries could translate to future HALEU fueled reactor fuel cycles. Various fuel loading and residence scenarios are evaluated to estimate areas of potential cost savings. Cost savings from location optimization is explored for both fresh and spent nuclear fuel. Additional analysis was completed to estimate cost savings through improved labor productivity.

11 - NUCLEAR FUEL CYCLE AND FUEL MATERIALS

Options for Achieving Cost Reduction in Advanced Reactors through Open Architecture

A key contributor to high capital costs and schedule overruns for new nuclear power plants is lack of standardization, driven by site-specific customization and construction of multiple designs by competing vendors rather than commitment to a single standardized program. While advanced reactor vendors typically individually target repeat construction of standardized units, the many competing designs could exacerbate the problem. “Open Architecture”, the open specification of requirements and interfaces for structures, systems and components (SSCs), has been proposed as a means of promoting standardization, by facilitating existing non-nuclear suppliers to enter the industry and/or allowing SSCs to be configured for more than one reactor within the same technology type. Contracting mechanisms that facilitate information sharing and alignment of incentives between stakeholders may complement such an approach. A preliminary scheme is presented for selection of SSCs for which such strategies could be adopted, based on a vendor make/buy decision model and stakeholder interviews. SSCs are categorized according to number of suppliers and their contribution to the reactor’s competitive edge. SSCs with many potential suppliers and a high contribution to competitive edge may be attractive for widening the supply chain via open specification of system requirements and interfaces, e.g., SSCs in the power island. SSCs with few suppliers and low contribution to competitive edge may be potential avenues for common system specification between vendors, e.g., some of the auxiliary SSCs. Potential cost reductions from such strategies will depend upon the size of the build program and the reactor type.

11 NUCLEAR FUEL CYCLE AND FUEL MATERIALS

Do Mandates Deliver Cost Reductions for Energy Storage?

In 2013, California implemented a mandate directing the state’s investor-owned utilities to procure 1325 MW of energy storage, to help integrate nondispatchable renewable sources of energy and assist the state in meeting its environmental goals. This paper evaluates this policy’s impact of both battery deployment, and cost, finding that as of 2019, the state was effective in spurring nearly 500 MWh of battery storage deployment over what would have been installed in absence of the policy. This additive deployment would have the effect of reducing global battery cell costs by roughly $1.00/ kWh, based on learning by doing. To support these findings, we utilize both a difference in differences estimation, and a synthetic control analysis, both of which allow us to compare battery deployment in California, to deployment in other states. To pair deployment to cost reduction, we use a learning curve analysis, which links battery shipments to cell and storage block costs. For policymakers, these results provide evidence to the effectiveness of mandates in promoting storage deployment and help explain how these policies can induce downstream effects.

Boff, Daniel S.

Greenhouse gas emissions reduction strategies that maximize portfolio-wide life cycle cost reduction, resilience, and environmental justice benefits

While strategies to achieve net-zero emissions at an individual site are well understood, new analysis methods are required for organizations seeking to achieve net-zero across multiple facilities, each with concurrent priority goals. At a portfolio level, distinct locations present varied challenges that cannot be addressed through singular solutions, and competing goals can take precedence with the assumption that net-zero emissions strategies deter from energy resilience and cost savings, therefore negatively impacting nearby communities. This study tests these assumptions by analyzing 16 diverse sites (varying in size, climate, and energy use) to identify strategies that reduce emissions and assess the impact these strategies have on life cycle costs, resilience, and communities with environmental justice concerns. Methods were developed to approximate missing information essential to net-zero evaluation. Established methods were augmented to evaluate life cycle costs, resilience, and environmental justice impacts across a set of strategies and accommodate the multi-criteria analyses. Potential benefits from identified strategies were quantified using site characteristics and a set of corresponding metrics. The net-zero analysis found that 11 sites could use on-site strategies to eliminate all but 2% of emissions generated. The remaining emissions can be offset, for instance through sequestration, executed at the portfolio scale. On-site carbon-free energy was found to reduce 51% of emissions across all sites; efficiency reduced 19% of emissions; sequestration 16%; procured carbon-free energy 15%; fuel switching 1.6%; and fleet electrification 1.3%. Building electrification, however, increased emissions by 4.4%. Different strategies also provide cost, resilience, and/or environmental justice benefits—the degree to which varies with individual site conditions. The findings indicate an advantage to considering the strategies as a comprehensive set, which leads to co-benefits, both in the ability to achieve net-zero goals and in advancing other goals. The results present the case for comprehensive advanced planning at the portfolio level to prioritize investments that will balance the minimization of emissions and life cycle cost with the maximization of resilience and environmental justice benefits. The novel methods for evaluation and integration, valuation of benefits, and consideration at the portfolio scale allow organizations to select investments that simultaneously address multiple key priorities.

Net-Zero Emissions

Potential Cost Reduction in New Nuclear Deployments Based on Recent AP1000 Experience

The completion of Vogtle Units 3 and 4, despite significant cost and schedule overruns, a major bankruptcy, and a pandemic, demonstrates that the U.S. nuclear industry can still develop new supply chains, train a highly skilled workforce, and build large nuclear power plants. Vogtle, being a first-of-a-kind (FOAK) plant, faced overruns, but FOAK overruns can decrease with more deployments through a combination of design standardization and modularization, transferring and implementing lessons learned between consecutive projects, and innovation. This report quantifies the potential cost and schedule reductions in future AP1000 plants in the US and identifies the barriers in achieving those reductions. It starts with a summary and analysis of the cost and construction timeline data for AP1000 plants that started construction in the United States (Vogtle) and China. Motivated by the steep schedule reductions from the first to second series of AP1000 plants in China, a cost reduction model was developed to quantify potential reductions for future AP1000 builds in the US. Results show that within about 3 more builds, AP1000s can become economically attractive in large markets in the U.S., without leveraging the Investment Tax Credit (ITC) or Production Tax Credit (PTC), and much sooner if these tax credits are available. Importantly the financial risks for future AP1000 builds in the US might be much smaller than observed in the FOAK plants. The study also identifies various barriers for future builds including the availability of a supply chain and a skilled workforce, and emphasizes the importance of making investments to gather and implement lessons learned between consecutive projects.

22 GENERAL STUDIES OF NUCLEAR REACTORS

Potential Supply Chain and Cost Reduction Strategies for Advanced Nuclear Reactors

This milestone represents a level of effort to provide recommendations for a supply chain plan and establish relationships between advanced reactor companies and large companies in the oil & gas and chemical industries. It represents a starting point to develop the plan with options, general equipment lists, and rough associated cost estimates of major equipment and the associated systems needed. This effort will provide an opportunity to leverage the experience that oil & gas and chemicals companies possess in large capital equipment procurement, modularization, acquisition and installation. Potential supply chain solutions will be discussed and preliminary options for worldwide manufacturers will be elucidated. The goal of this effort will be to leverage the years of accumulated experience in the oil & gas and chemical industries in the area of capital equipment acquisition to understand the potential supply chain options and to reduce potential acquisition costs by optimizing the supply chain options for advanced nuclear reactor modularization, manufacturing and acquisition.

22 - GENERAL STUDIES OF NUCLEAR REACTORS

ILAW Container Cost Reduction and Optimization Study

This study, performed on behalf of Washington River Protection Solutions (WRPS), examines the potential for making cost savings for the Immobilized Low Active Waste (ILAW) containers over the mission life of the Waste Treatment and Immobilization Plant (WTP). it builds on earlier study assessments 24590-LAW-RPT-M-01-001 Rev 0 ILAW Product Container Specifications Optimization Study and DOE/ORP-2013-02 Rev 0 Decision Analysis of Low-Active Waste Container Finishing Handling System Alternatives. The WTP design and installed equipment has evolved over an extended period ~20 years. Consequently, some of the existing requirements relating the ILAW containers may no longer be applicable under current mission plans where the glass filled containers are placed into the Integrated Disposal Facility (IDF) rather than stacked in an engineered purpose-built ventilated store as originally envisioned. The study team reviewed available WTP project reference documents to establish the functions the container must perform and assign requirements against each of these functions. With the assumptions that some of the existing WTP contract restrictions would not necessarily apply to the subsequent facility operations contract the container requirements were reviewed to identify those which were ‘hard constraints‘, imposed by regulatory requirements. Initially each of these hard constraints were reviewed, evaluated and documented to see if they precluded the use of an alternate less expensive material of construction, carbon steel, to the existing 304 L stainless steel in the current container specification. That review did not generate any fatal flaws for a change in material of construction to carbon steel allowing the study team to examine the impacts of material cost savings, potential changes to the design and requirements and impacts on interfaces of the containers with the existing WTP process equipment from container receipt, transfers, glass filling, cooling and export. In addition, a change in container target fill level was evaluated and qualitative, and quantitative where feasible, impacts to the container fabrication process assessed. Lastly, additional follow on development or testing activities to support the use of carbon steel were assessed and a recommended path forward with a ROM cost and timescale developed.

12 MANAGEMENT OF RADIOACTIVE AND NON-RADIOACTIVE W

Expedited desalination permitting enables adaptive planning and water system cost reduction

Seawater desalination is a drought-proof water supply for coastal cities, but widespread development of desalination plants in the U.S. has been limited by both cost and the complexity of permitting processes designed to minimize environmental impact . This work estimates the value of accelerating the permitting timeline without changing environmental or social standards. On average, faster permitting reduces the frequency of desalination plant construction and operation, the overall costs of robust water system operation, the environmental impacts of drought-tolerant water supplies due to shorter duration of plant operation. Expedited permitting allows fundamental changes in how water infrastructure is deployed, facilitating a transition from anticipatory construction and continuous operation of seawater desalination capacity as a redundant drought buffer to just-in-time (i.e. adaptive) deployment of seawater desalination capacity when critical drought thresholds are crossed. We demonstrate the value of expedited desalination permitting in enabling adaptive planning and reducing water system costs using a simple case study in Santa Barbara, CA. We discuss additional forms of adaptive water infrastructure planning as enabled by faster permitting and address their challenges and opportunities. Lastly, we identify synergies between innovation in adaptive planning, innovation in expedited permitting practices, and innovation in water technology.

adaptive planning

A Path to III-V Photovoltaic Cost Reduction Combining GaAs (211) Spalling with Halide Vapor Phase Epitaxy

This presentation is an overview of the following, Spalling on 211 oriented wafers produces flat surface without faceting: 1) Demonstrated spall on entire 2" wafer; 2) GaAs and GaInP grown on 211 wafers by HVPE; and 3) Promising cell with VOC=1.02 V and IQE-1. Next steps: 1) Grow cell on spalled wafer and 2) Growth studies to improve material and cell on 211 substrates.

14 SOLAR ENERGY

Assessment of Technoeconomic Opportunities in Automation for Nuclear Microreactors

Achieving full decarbonization of all economic sectors remains a challenge, especially in niche markets. For example, remote communities and industrial or mining activities detached from the main electric grid heavily rely on fossil fuels, similar to urban and industrial microgrids with combined heat and power needs. A combination of renewables and energy storage is often not suitable due to cost, reliability, intermittency, and large storage requirements. Small nuclear reactors with a flexible purpose could serve these applications. Microreactors (MR) are a class of reactors that are compact, factory manufactured, transportable, and self-regulating. Typically, they generate much less power than their large reactor counterparts. The main advantages of microreactors include the versatile nature of the energy produced, the reliability of supply, and freedom from having to transport and store large quantities of fuels on-site, coupled with the absence of dependence on an electrical grid. A strong business case is needed to move from the microreactor prototype to the commercialization phase. In fact, fossil fuels are still relatively inexpensive, and in the near term, carbon credits will be available to virtually compensate for emissions. For microreactors, one of the main costs in operation and maintenance (O&M) is their staffing levels. In this study, we investigate how to optimize the number (and thus the cost) of workers, moving from a traditional, fully manned, on-site personnel approach to an unmanned, remote personnel approach. We examine four different staffing models that can be implemented as the technology matures and evolves. We estimate the staffing needs of each model and build a business case to justify the substitution of on-site personnel with adequate technologies. To do so, we propose a cost model to quantify potential cost reductions from automating O&M activities. The model accounts for both the reduction in cost derived from the reduced number of full-time-equivalent (FTE) employees and the increase in cost derived from the need to buy new control hardware as needed. Applying the cost model that we created to different scenarios, an on-site O&M cost reduction exceeding 80% can be expected. Additionally, we found that it is more impactful to focus on automating routine O&M tasks rather than attempting to automate transient management (shutdowns, restarts, monitoring condition deviations). In fact, transients typically account for less than 1% of the total FTE time spent on the reactors.

29 ENERGY PLANNING, POLICY, AND ECONOMY