Methods Identifying Cost Reduction Potential for Water Electrolysis Systems

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22 Scopus Citations


The electrochemical reduction of water to form hydrogen is an emerging alternative for energy storage, where hydrogen can be used as a transportation fuel, combusted to generate electricity, utilized in a fuel cell, or used as a feedstock for chemical synthesis. Techno-economic analysis (TEA) is a valuable tool for understanding how to inform research directions that could make hydrogen from electrolysis cost competitive with that produced by conventional means like steam methane reforming. The current state of knowledge on TEA of electrolysis systems suggests cost reductions are likely to result from advances in system design and materials, scale-up of manufacturing processes, and learning by doing effects as electrolysis deployment increases. Future directions and opportunities for TEA of electrolysis systems include dispatchable operation in wholesale power markets, optimization of capital cost and system durability, and analysis of pathways for hydrogen to support economy-wide decarbonization.

Original languageAmerican English
Article number100714
Number of pages9
JournalCurrent Opinion in Chemical Engineering
StatePublished - 2021

Bibliographical note

Publisher Copyright:
© 2021 Elsevier Ltd

NREL Publication Number

  • NREL/JA-6A20-78803


  • energy storage
  • hydrogen
  • hydrogen economy
  • proton exchange membrane
  • technoeconomic analysis
  • water electrolysis


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