Cost estimation of balance of plant equipment scale up for proton exchange membrane water electrolyzer systems
Water electrolyzers that use electricity to split water into hydrogen and oxygen could be a key technology for increasing hydrogen supply to meet expanded and emerging market applications, although currently the capital costs of these electrolyzers are high. Here we examine cost reductions that might be achieved by scaling up proton exchange membrane (PEM) electrolyzer systems and leveraging economies of scale through balance of plant (BOP) components for system sizes between 1 MW and 1 GW. We estimate BOP equipment capital costs of about $\$$848/kW at 1 MW, potentially decreasing to $\$$87/kW at 1 GW (2022-dollar year basis) with most of the cost reduction happening as systems scale from 1 MW to 100 MW. We find that BOP subsystems hydrogen drying and water knockout benefited the most from economies-of-scale cost reductions, and piping, instrumentation, and housing and power electronics were less impacted. These cost reductions from economies of scale could be more significant than estimated cost reductions from manufacturing scale-up reported in literature. These results add to the knowledge base that could guide optimal system designs that balance process scale-up with plant modularization and numbering-up. We also estimate that scaling up BOP could potentially lower the levelized cost of hydrogen (LCOH) by $\$$1.7-$\$$4.6/kg, depending on the scale-up magnitude and the plant capacity factor.