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Alkaline electrolyser dominates green H2 market

By technology, the global green hydrogen market has been segmented into alkaline
electrolyser, polymer electrolyte membrane (PEM), and others. As per PWC reports, alkaline
electrolyser (ALK) has a market share of 70% in green hydrogen market followed by polymer
electrolyte membrane (PEM).

Besides, solid oxide electrolyser cell is currently in R&D stage. While PEM electrolyser yields
higher-quality hydrogen and can be operated intermittently, it is expensive and has lower
production rates than ALK. On the other hand, ALK electrolyser needs to run continuously
or the production equipment gets damaged.

H2 costs

Similar to the Middle
which capex costs, electricity costs and electrolyser operating hours are considered to be East, India sits in a
most important. low-cost geographic

zone (sun) for green H2
Capex requirements currently range from USD500–1,400/kW for ALK electrolysers and
USD1,100–1,800/kW for PEM electrolysers, while estimates for SOEC electrolysers range generation
from USD2,800–5,600/kW. As much as 50–60% of capex costs are attributable to the
electrolyser stack. With increasing technology, capex cost will eventually reduce to half of
current levels.

Long-term, capex costs to reduce to half of current levels

6,000
5,600

4,800 ALK Electrolyser, 70%
PEM Electrolyser, 30%

(USD/kWe) 3,600 2,800

2,400
1,800
1,400 1,500
1,200 1,000
850 900
700

0
Alkaline PEM SOEC

Today 2030 Long-term
Source: Edelweiss Research, IEA

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