Economies of scale are driving down costs
Electrolyser capital costs could drop 30pc by 2025
Cost of Chinese alkaline systems about a quarter of the price of equivalent systems in Western markets, according to survey conducted by BloombergNEF
The capital cost of electrolysers could drop by 30pc by 2025 as the industry achieves greater economies of scale and technological advances, according to a survey of 30 projects conducted by research firm BloombergNEF. However, rising labour and raw material costs—especially for metals—could offset some of those projected cost reductions, the survey showed. BNEF looked at 14 projects already commissioned or under construction and 16 in the pipeline. Chinese alkaline electrolysis systems generally cost a quarter of the price of the same type of project in Western countries because of cheaper labour and local supply chains, BNEF says. Chinese-built proton-exchange-membrane (PEM) electrolysers
Also in this section
10 December 2025
Project developer Meld Energy ready to accelerate 100MW project in Humber region after securing investment from energy transition arm of private equity firm Schroders Capital
9 December 2025
BP and Engie abandon large-scale green hydrogen projects in Gulf state as developers in all regions continue to struggle with lack of firm offtake
5 December 2025
European Commission highlights rapid growth of Chinese production this year, as it retains strict procurement rules in latest European Hydrogen Bank subsidy auction
2 December 2025
Oil major cites deteriorating demand and a planning debacle as it abandons one of UK’s largest blue hydrogen projects
