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True Cost of Solar Hydrogen - Levelised Cost of Hydrogen in Europe 2021-2050
E. Vartiainen, C. Breyer, D. Moser, E. Román Medina, C. Busto, G. Masson, E. Bosch, A. Jäger-Waldau
LCOE, Solar PV, Green Hydrogen, LCOH
Finance, Markets and Policies
Subtopic: Costs, Economics, Finance and Markets
Event: 38th European Photovoltaic Solar Energy Conference and Exhibition
Session: 7EP.1.3
1601 - 1607
ISBN: 3-936338-78-7
Paper DOI: 10.4229/EUPVSEC20212021-7EP.1.3
0,00 EUR
Document(s): paper, presentation


Green hydrogen will be an essential part of the future 100% sustainable energy and industry system. Up to one third of the required solar and wind electricity would eventually be used for water electrolysis to produce hydrogen, increasing the cumulative electrolyser capacity to about 17 TWel by 2050. Key method applied in this research are a learning curve approach for the key technologies, i.e. solar photovoltaic (PV) and water electrolysers, and levelised cost of hydrogen (LCOH). Sensitivities for the hydrogen demand and various input parameters are considered. Electrolyser capital expenditure (CAPEX) for a large utility-scale system is expected to decrease from current 400 €/kWel to 240 €/kWel by 2030 and to 80 €/kWel by 2050. With the continuing solar PV cost decrease, this will lead to an LCOH decrease in Europe from current 47-81 €/MWhH2,LHV (1.6-2.7 €/kgH2) to 31-54 €/MWhH2,LHV (1.0-1.8 €/kgH2) by 2030 and 16-27 €/MWhH2,LHV (0.5-0.9 €/kgH2) by 2050, depending on the location. The share of PV electricity cost in the LCOH will increase from the current 63% to 74% by 2050.