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E4tech Av. Juste-Olivier 2 1006 Lausanne Switzerland Tel: +41 21 331 1570 [email protected] www.e4tech.com Austin Power Engineering LLC 1 Cameron ST Wellesley, MA 02482 USA www.AUSTINPOWERENG.com [email protected] PEM & Alkaline Electrolyzers Bottom-up Manufacturing Cost Analysis Yong Yang Austin Power November 10, 2014 David Hart E4tech

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Page 1: PEM & Alkaline Electrolyzers Bottom-up Manufacturing Cost …austinpowereng.com/Fuel cell/AustinPower-E4tech FCS2014... · 2016-03-14 · Water electrolysis could play a significant

E4tech Av. Juste-Olivier 2

1006 Lausanne Switzerland

Tel: +41 21 331 1570

[email protected] www.e4tech.com

Austin Power Engineering LLC 1 Cameron ST

Wellesley, MA 02482 USA

www.AUSTINPOWERENG.com

[email protected]

PEM & Alkaline Electrolyzers Bottom-up Manufacturing Cost Analysis

Yong Yang

Austin Power

November 10, 2014

David Hart

E4tech

Page 2: PEM & Alkaline Electrolyzers Bottom-up Manufacturing Cost …austinpowereng.com/Fuel cell/AustinPower-E4tech FCS2014... · 2016-03-14 · Water electrolysis could play a significant

1 2014 YY/DH

The objective of the study is to understand the cost reduction potential of the main water electrolysis technologies

Introduction Objective

Water electrolysis could become an important part of future stationary energy and transport systems

Where and how it could play a role depends on the cost reduction that could be achieved in moving from a small and unoptimised industry

Detailed modelling can provide insight into both ultimately achievable costs and the impact of certain design choices and technology improvements

Page 3: PEM & Alkaline Electrolyzers Bottom-up Manufacturing Cost …austinpowereng.com/Fuel cell/AustinPower-E4tech FCS2014... · 2016-03-14 · Water electrolysis could play a significant

2 2014 YY/DH

Water electrolysis could play a significant role in the future energy system, if predicted cost reductions can be realised.

Introduction Market Overview

Roadmap for electrolyser deployment by application. Source: 2014 FCH-JU study on water electrolysis

Data source cost reduction expectations: 2014 FCH-JU study on water electrolysis

Expert ‘predicted’ cost reductions

Consolidated views on rollout potential

Page 4: PEM & Alkaline Electrolyzers Bottom-up Manufacturing Cost …austinpowereng.com/Fuel cell/AustinPower-E4tech FCS2014... · 2016-03-14 · Water electrolysis could play a significant

3 2014 YY/DH

Today’s electrolyser market is comparatively small, the industry landscape is highly fragmented and no single design dominates

Introduction Market Overview

• Perhaps 4% of global hydrogen supply is

produced via electrolysis

• Larger (> 50 kW) water electrolysis systems

are typically deployed for continuous operation.

Examples are fertilisers and methanol

production, fats & oils, float glass, …

• The industry is highly fragmented, with a few

established players and many start-ups / new

entrants – and cost reduction potential

18%

4%

48%

30%

Coal gasification

Electrolysis

Natural gas reforming

Refinery/Chemical off-gases

18%

4%

48%

30%

Coal gasification

Electrolysis

Natural gas reforming

Refinery/Chemical off-gases

Source: IEA (2007)

18%

4%

48%

30%

Coal gasification

Electrolysis

Natural gas reforming

Refinery/Chemical off-gases

18%

4%

48%

30%

Coal gasification

Electrolysis

Natural gas reforming

Refinery/Chemical off-gases

Source: IEA (2007)

Chemistry Parameter (Examples) Design philosophy options Implications (Examples)

PEM Cell size Small cell versus large cell approach Component material choice, fewer stacks

PEM Cell pressure design Balanced versus unbalanced pressure System control, gas purification

Alkaline Liquid-gas separators Stack-internal versus external Cell material usage efficiency

Alkaline Operational pressure Pressurised versus unpressurised design Cell material choices, gas purification

Page 5: PEM & Alkaline Electrolyzers Bottom-up Manufacturing Cost …austinpowereng.com/Fuel cell/AustinPower-E4tech FCS2014... · 2016-03-14 · Water electrolysis could play a significant

4 2014 YY/DH

Overview of key performance indicator of state-of-the-art electrolyser technology.

Introduction Technology Overview

Parameter Unit Commercial alkaline Commercial PEM

Stack capacity kW 200 – 4,500 40 – 100

System capacity kW 1,100 – 5,300 100 – 1,200

Specific electricity input (system, nominal

load)

kWh/kgH2 50 – 78 50 – 83

Hydrogen output pressure bar(g) 0.05 – 30 10 – 30

Stack lifetime (continuous operation) hours 60,000 – 90,000 20,000 – 60,000*

System lifetime (continuous operation) years 20 – 30 10 – 30

Current density A/cm² 0.2 – 0.4 1.0 – 2.0

Overload ability %el Currently not more than 20% offered commercially,

though PEM could ultimately have 200% – 300%

Operating temperature °C 60 – 80 50 – 80

Minimum part load %el 20 – 40 5 – 10

Specific electricity input (system, variable

load)

kWh/kgH2 No manufacturer data available. At stack level specific

electricity may reduce by 2 to 5 kWh/kg at 50% of

nominal electric load

Responsiveness (ramp time) %el/second 0.1 – 10 10 – 100

Start-up time cold & pressurised / cold & unpressurised >20 minutes / several

hours

~5 / ~15 minutes

Page 6: PEM & Alkaline Electrolyzers Bottom-up Manufacturing Cost …austinpowereng.com/Fuel cell/AustinPower-E4tech FCS2014... · 2016-03-14 · Water electrolysis could play a significant

5

Approach Manufacturing Cost Modeling Methodology

This approach has been used successfully for estimating the cost of various technologies for commercial clients and the DOE.

Technology

Assessment

Manufacturing

Cost Model

Scenario

Analyses

Verification &

Validation

• Literature research • Definition of system and component diagrams • Size components • Develop bill-of-materials (BOM)

• Define system value chain • Quote off-shelve parts and materials • Select materials • Develop processes • Assembly bottom-up cost model •Develop baseline costs

• Technology scenarios • Sensitivity analysis • Economies of Scale • Supply chain & manufacturing system optimization • Life cycle cost analysis

• Cost model internal verification reviews • Discussion with technical developers • Presentations to project and industrial partners • Audition by independent reviewers

Membrane

8.0%

Stack

Conditioning

2.7%

Seal

8.4%

Balance of Stack

2.4%

Bipolar Plate

26.1%

GDL

5.1%

Electrode

41.0%

Stack Assembly

6.3%

2014 YY/DH

Anode Ink

Anode Side

Catalyst Layer

Membrane

Processes

Cathode Side

Catalyst Layer

Cathode Ink

Hot Press

Lamination

Purchased GDL

Purchased GDL

Pt

Pt

Nafion®

Ionomer

99.9% 98.5%

99.9% 98.5%

99% 98.5%

100% 98.5%99% 98.5%

99% 98.5%

100% 100%

100% 100%

100% 100%

100% 100%

100% 100%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

3-Year TCO 5-Year TCO 10-Year TCO 15-Year TCO

To

tal

Co

st

of

Ow

ers

hip

($

)

PEMFC Plug Hybrid Vehicle

Full Battery Electric Vehicle

Page 7: PEM & Alkaline Electrolyzers Bottom-up Manufacturing Cost …austinpowereng.com/Fuel cell/AustinPower-E4tech FCS2014... · 2016-03-14 · Water electrolysis could play a significant

6

Combining performance and cost model will easily generate cost results, even when varying the design inputs.

2014 YY/DH

Process Simulation

Energy requirements

Equipment size/ specs

Product Costs

Product cost (capital,

O&M, etc.)

Conceptual Design

System layout and

equipment requirements

Capital Cost Estimates Site Plans

Safety equipment, site

prep, land costs

High and low volume

equipment costs

Air (POX only)

Nat. Gas

Water

Fuel

Reformer PSA

H2-rich gas

H2-poor gas

Catalytic

Burner

HeatCold

Water

99.99% pure H2

Low

Pressure

Storage

Medium

Pressure

Storage

High

Pressure

Storage

Flow

cntrlr

Flow

cntrlrFlow

cntrlr

Dispenser

To Vehicle

CO2

H2O

Compressor with intercoolers

Cooling

Tower

Process cost

Material cost

Tape Cast

Anode

Powder Prep

Vacuum

Plasma

Spray

Electrolyte

Small Powder

Prep

Screen

Print

Cathode

Small Powder

Prep

Sinter in Air

1400CSinter in Air

Forming

of

Interconnect

Shear

Interconnect

Vacuum

Plasma

Spray

Slurry

Spray

Screen

Print

Slurry Spray

Slip Cast

Finish Edges

Note: Alternative production processes appear in gray to the

bottom of actual production processes assumed

Braze

Paint Braze

onto

Interconnect

Blanking /

Slicing

QC Leak

Check

Interconnect

Fabrication

Electrolyte CathodeAnode

Stack Assembly

Fuel Station Perimeter

Electrolyzer or SMR,

High-Pressure

Compressor

H2 High Pressure

Cascade Storage

System

Gaseous Fuel

Dispensing Islands

Underground Piping with shared conduit

Vent

Building

Covered Fueling Island

CNG High Pressure

Cascade Storage System

Fire Detector

Walls with minimum fire rating of 2 hours

Wall openings (doors & windows)

Building intake vents

Adjoining property that can be built on

Public sidewalks, parked vehicles

Streets

Railroad tracks

Other flammable gas storage

5 ft

25 ft

50 ft

10 ft

15 ft

10 ft

15 ft

10 ft

Minimum set-back distances for hydrogen and/or natural gas

storage (more stringent gas noted if relevant)

Property of:

TIAX LLC

1061 De Anza Blvd.

Cupertino, CA 95014

Task 5 CNG/Hydrogen Fueling

Site Plan - Fueling Station

Hydrogen and CNG fueling station

SIZE DWG BY DWG NO REV

A Stefan Unnasch B0228 - S0022 1

SCALE 1" = 8 ft 5 Jan 2004 SHEET 1 OF 110 ft

Security FenceNG line in

ft

ft

ft

ft

ft

ft

ft

ft

Process Cost Calcs

Material

Process

$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

$10

Lapp

ing

CM

P

Wet

ther

mal

Oxida

tion

Spin

Coa

ting

Wet

Etc

hing

SiO

2

DC S

putte

ring

Ni

RF S

putte

ring

E

Spin

Coa

ting

Stepp

er

DC S

putte

ring

Ag

Stripp

ing

Spin

Coa

ting

Stepp

er

Dry

Etc

hing

SiO

2

DRIE

Si

Wet

Etc

hing

SiO

2

Dry

Etc

hing

NI

Wafe

r C

ost

($)

Approach Manufacturing Cost Modeling Methodology

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

3-Year TCO 5-Year TCO 10-Year TCO 15-Year TCO

To

tal

Co

st

of

Ow

ers

hip

($

)

PEMFC Plug Hybrid Vehicle

Full Battery Electric Vehicle

Page 8: PEM & Alkaline Electrolyzers Bottom-up Manufacturing Cost …austinpowereng.com/Fuel cell/AustinPower-E4tech FCS2014... · 2016-03-14 · Water electrolysis could play a significant

7

Austin Power Engineering’s manufacturing cost models can be used to determine a fully loaded selling price to consumers at high or low volumes.

Direct Labor

Direct Materials

Factory Expense

General Expense

Sales Expense

Profit

Consumer

Selling Price

Fixed Costs

• Equipment and Plant

Depreciation

• Tooling Amortization

• Equipment Maintenance

• Utilities

• Building

• Indirect Labor

• Cost of capital

• Overhead Labor

Variable Costs

• Manufactured Materials

• Purchased Materials

• Fabrication Labor

• Assembly Labor

• Indirect Materials

Corporate Expenses

• Research and Development

• Sales and Marketing

• General & Administration

• Warranty

• Taxes

Approach Manufacturing Cost Structure

Manufacturing

Cost

We assume 100% financing with an annual discount rate of 10%, a 10-year equipment life, a 25-year building life, and three months working capital. 2012 YY

Page 9: PEM & Alkaline Electrolyzers Bottom-up Manufacturing Cost …austinpowereng.com/Fuel cell/AustinPower-E4tech FCS2014... · 2016-03-14 · Water electrolysis could play a significant

Our cost assessment includes four systems which are a current alkaline system, a future alkaline system, a current PEM system, and a future PEM system.

Approach Scope

8 2014 YY/DH

Future Alkaline

System Future PEM System

Current Alkaline

System

Current PEM

System

Alkaline PEM

Future

Current

Page 10: PEM & Alkaline Electrolyzers Bottom-up Manufacturing Cost …austinpowereng.com/Fuel cell/AustinPower-E4tech FCS2014... · 2016-03-14 · Water electrolysis could play a significant

9

Alkaline systems are assumed to have the following system and stack designs in the different scenarios.

Alkaline System

2014 YY/DH

Alkaline Unit Small Cell

Current

Large Cell

Future

System size kW 1,000 4,000

Stack size kW 250 2,000

Stacks per system 4 2

System Pressure Barg 15 15

H2 Purity % 99.999% 99.999%

Active cell area cm² 3,125 12,500

Cell voltage V 1.75 1.75

Active area / total cell area

(Gas/liquid separation) %

25

(internal)

85

(external)

Current density A/cm² 0.4 0.8

Membrane material polyantimonic acid / polysulfone Zirfon

Anode / cathode material Ni foam (plus Ni(OH)2) / Ni mesh Ni foam (plus Ni(OH)2) / Ni mesh

Conductive porous layer Ni foam Ni foam

Cell frame material PPO Polymer SS316

Annual Production Volume 12 MW 1.2 GW

Page 11: PEM & Alkaline Electrolyzers Bottom-up Manufacturing Cost …austinpowereng.com/Fuel cell/AustinPower-E4tech FCS2014... · 2016-03-14 · Water electrolysis could play a significant

10

Example detail: Alkaline electrolyzer stacks repeat components section view

Alkaline System Stacks

2014 YY/DH

Anode conductive layer

Anode

Membrane

Cathode

Cathode conductive layer

Bipolar plate

Cell frame

Cell Gasket

Repeat cell components

Based on patent information and other data

Anode conductive layer

Anode

Membrane

Cathode

Cathode conductive layer

Bipolar plate

Cell frame

Cell Gasket

Repeat cell components

Current Internal Gas/Liquid

Separation Electrolyzer

Future external Gas/Liquid

Separation Electrolyzer

Page 12: PEM & Alkaline Electrolyzers Bottom-up Manufacturing Cost …austinpowereng.com/Fuel cell/AustinPower-E4tech FCS2014... · 2016-03-14 · Water electrolysis could play a significant

11

Current alkaline electrolyzer stack costs approximately $435/kW and future alkaline electrolyzer stack costs about $101/kW.

Alkaline System Stack Costs

2014 YY/DH

Current Alkaline Stack Cost $435/kW Future Alkaline Stack Cost $101/kW

10%

4%

17%

4%

7%

15%

19%

8%

4%

3%

3% 0%

3% 3%Anode

Anode foam

Electrolyte

Cathode foam

Cathode

Cell Frame

Bipolar Plates

Gaskets

End Plates

Current Collector

Insulator

Frame

Tie Bolts

Final Assy

9%

5%

18%

5%

6%28%

17%

3%

1%1%

1% 0% 2%

4%Anode

Anode foam

Electrolyte

Cathode foam

Cathode

Cell Frame

Bipolar Plates

Gaskets

End Plates

Current Collector

Insulator

Frame

Tie Bolts

Final Assy

Page 13: PEM & Alkaline Electrolyzers Bottom-up Manufacturing Cost …austinpowereng.com/Fuel cell/AustinPower-E4tech FCS2014... · 2016-03-14 · Water electrolysis could play a significant

12

Current alkaline electrolyzer system costs about $1,072/kW and future alkaline electrolyzer system costs about $494/kW.

Alkaline System System Costs

2014 YY/DH

Current Alkaline System Cost $1,072/kW Future Alkaline System Cost $494/kW

41%

33%

5%

5%

7%

1%3%

1%1%

3%Stack

HV power supply module

System control unit

De-oxygen unit

Dryer unit

Electrolyte cooling unit

Chiller

Water treatment unit

Gas & water loops

Others & Assembly, Test

21%

50%

1%

7%

11%

1%4%

1% 2% 2%

Stack

HV power supply module

System control unit

De-oxygen unit

Dryer unit

Electrolyte cooling unit

Chiller

Water treatment unit

Gas & water loops

Others & Assembly, Test

Page 14: PEM & Alkaline Electrolyzers Bottom-up Manufacturing Cost …austinpowereng.com/Fuel cell/AustinPower-E4tech FCS2014... · 2016-03-14 · Water electrolysis could play a significant

13

In Alkaline stacks, higher current densities are key to reducing costs, but all options are subject to fundamental limits.

Alkaline System Cost Analysis

2014 YY/DH

Cost contributors Pathways to cost reduction Identified limits

Cell frame, bipolar

plate, membrane,

electrodes

Increase current density and

reduce materials use through

innovative component design and

advanced electrode materials

Industry reports 0.8 to 1.0 A/cm² as

a long term target. Limitation is

acceptable efficiency at high

currents. (Current density today: 0.4

A/cm²)

Cell frame Reduce material use through

large cell concepts with a better

ratio between active area and

frame area

Mechanical stability of cell

components, depending on stack

pressure level

Gas/liquid separation Reduce the amount of frame

material required through use of

external gas separators

Increase active area from ~25% to

~75% of frame area. Manifold area

as limiting factor.

Cell frames made of

(expensive)

machined SS316 with

polymer coating

Replace by (cheaper) injection

moulded polypropylene, though

mechanical stability at pressure

may be limited

Mechanical stability of

polypropylene

Page 15: PEM & Alkaline Electrolyzers Bottom-up Manufacturing Cost …austinpowereng.com/Fuel cell/AustinPower-E4tech FCS2014... · 2016-03-14 · Water electrolysis could play a significant

14

PEM systems have the characteristics below:

PEM System

2014 YY/DH

PEM Unit Small Cell

Current

Large Cell

Future

System size kW 180 4,000

Stack size kW 60 1,000

Stacks per system 3 4

System Pressure Barg 15 15

H2 Purity % 99.999% 99.999%

Active cell area cm² 210 1,905

Active area / total cell area % 75 75

Current density A/cm² 1.5 2.5

Membrane material Nafion 200µm Nafion 200µm

Catalyst loading mg/cm² 4.0 Pt 0.1 Pt, 0.3 Ir

Conductive porous layer Ti foam Ti foam

Screen pack plates Three layer Ti mesh Function replaced by flow field

plates

Bipolar plate Ti foil SS316 with Ti coating

Cell frame material Ti SS316

Annual Production Volume 3 MW 1.2 GW

Page 16: PEM & Alkaline Electrolyzers Bottom-up Manufacturing Cost …austinpowereng.com/Fuel cell/AustinPower-E4tech FCS2014... · 2016-03-14 · Water electrolysis could play a significant

15

Current PEM electrolyzer stack costs approximately $1,144/kW and future PEM electrolyzer stack costs about $87/kW.

PEM System Stack Costs

2014 YY/DH

Current PEM Stack Cost $1,144/kW Future PEM Stack Cost $87/kW

7%

10%

10%

3%

6%

16%3%

3%3%

21%

1% 3%

0%

0%2% 13%

Anode

Electrolyte

Cathode

MEA Gasket

Conductive Porous Plate

Screen Pack

Pressure Pad Separator Plate

Pressure Pad

Cell Separator Plate

Cell Frame

Gaskets

End Plates

Current Collector

Insulator

Tie Bolts

Final Assy, Conditioning, Test

2%

18%

1%

1%

27%

0%

4%3%

17%

17%

1%3%

1%

1%1%

3%

Anode

Electrolyte

Cathode

MEA Gasket

Conductive Porous Plate

Screen Pack

Pressure Pad Separator Plate

Pressure Pad

Cell Separator Plate

Cell Frame

Gaskets

End Plates

Current Collector

Insulator

Tie Bolts

Final Assy, Conditioning, Test

Page 17: PEM & Alkaline Electrolyzers Bottom-up Manufacturing Cost …austinpowereng.com/Fuel cell/AustinPower-E4tech FCS2014... · 2016-03-14 · Water electrolysis could play a significant

16

Current PEM electrolyzer system costs about $2,013/kW and future PEM electrolyzer system costs about $441/kW.

PEM System System Costs

2014 YY/DH

Current PEM System Cost $2,013/kW Future PEM System Cost $441/kW

57%

17%

11%

2%

2%

4%3%

4%

Stack

HV power supply module

System control unit

Feed water treatment

Chiller

Dryer

Gas & water loops

Others & Assembly, Test

20%

56%

2%

1%4%

13%

2%

2%

Stack

HV power supply module

System control unit

Feed water treatment

Chiller

Dryer

Gas & water loops

Others & Assembly, Test

Page 18: PEM & Alkaline Electrolyzers Bottom-up Manufacturing Cost …austinpowereng.com/Fuel cell/AustinPower-E4tech FCS2014... · 2016-03-14 · Water electrolysis could play a significant

17

PEM cost reduction opportunities are strongly related to the reduced use of titanium, though other components contribute.

PEM System Cost Analysis

2014 YY/DH

Cost contributors Pathways to cost reduction Identified limits

Components made of

titanium

(cell frame, screen pack,

porous plate)

Reduce use of titanium in

components, e.g. make cell

frames of steel plus coatings

instead of full machined titanium;

Make bi-polar plates of steel plus

titanium coating instead of full

titanium.

Increase current density.

Titanium (high material and

processing cost)

expected to remain as the

material of choice for ‘acidic’

electrolysers

Electrode catalysts Material changes using

advanced catalyst support

structures, mixed metal oxides

and nano-structured catalysts.

Precious metal cost and

catalyst activity for acceptable

efficiency. Goals are:

- 0.3mg/cm² Iridium - Anode

- 0.1mg/cm² Pt - Cathode

Supplied membrane High volume orders and/or

dedicated production

Costly fluorine chemistry in

Nafion production

Page 19: PEM & Alkaline Electrolyzers Bottom-up Manufacturing Cost …austinpowereng.com/Fuel cell/AustinPower-E4tech FCS2014... · 2016-03-14 · Water electrolysis could play a significant

18

‘Expert-predicted’ cost reductions seem plausible and could make electrolysis much more competitive

Conclusions

2014 YY/DH

• Alkaline cost reduction is quite sensitive to volume production and

increased current density

• PEM routes to cost reduction include volume production, system scale-up,

reduction of expensive materials, and increased current density

• PEM is less mature so future cost is sensitive to a number of uncertain

technology development assumptions

• BoP costs (mainly power supply) start to dominate at high production

volumes

• Cost reduction and increased deployment will have to go hand-in-hand for

the industry to achieve aggressive targets

• Other technology may be interesting to analyse, for example SOEC

Page 20: PEM & Alkaline Electrolyzers Bottom-up Manufacturing Cost …austinpowereng.com/Fuel cell/AustinPower-E4tech FCS2014... · 2016-03-14 · Water electrolysis could play a significant

19

Thank You!

2014 YY/DH

Contact: Yong Yang Austin Power Engineering LLC

1 Cameron St Wellesley MA 02482

USA

Tel: +1 978-263-0397 [email protected]

www.austinpowereng.com

Contact: David Hart E4tech

Av. Juste-Olivier 2 1006 Lausanne

Switzerland

Tel: +41 21 331 1570 [email protected]

www.e4tech.com