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