Advances in power-to-gas technologies: cost and conversion efficiency

Sep 19, 2023·
Gunther Glenk
Philip Holler
Philip Holler
,
Stefan Reichelstein
· 0 min read
Industrial gas-processing plant with reactor columns and storage tanks.
Abstract
Widespread adoption of hydrogen as an energy carrier is commonly believed to require continued advances in power-to-gas (PtG) technologies. Here we provide a comprehensive assessment of the dynamics of system prices and conversion efficiency for three currently prevalent PtG technologies: alkaline, polymer electrolyte membrane, and solid oxide cell electrolysis. We analyze global data points for system prices, energy consumption, and the cumulative installed capacity for each technology. Our regression results establish that over the past two decades every doubling of cumulative installed capacity resulted in system prices coming down by 14–17%, while the energy required for electrolysis was reduced by 2%. On the basis of multiple forecasts of future deployment growth, as well as policy and industry targets, our calculations project that all three technologies will become substantially cheaper and more energy-efficient in the coming decade. Specifically, the life-cycle cost of electrolytic hydrogen production is projected to fall in the range of $1.6–1.9 per kg by 2030, thereby approaching but not reaching the $1.0 per kg cost target set by the U.S. Department of Energy.
Type
Publication
Energy & Environmental Science, 16, 6058–6070
Status
Peer-reviewed
publications
Philip Holler
Authors
Doctoral Candidate
I am a doctoral candidate at the University of Mannheim and a researcher at the Mannheim Institute for Sustainable Energy Studies (MISES). I combine techno-economic analysis with carbon accounting to study the economics of decarbonization technologies, emission allocation effects and the investment incentives it shapes. I have held visiting positions at the Stanford Graduate School of Business and the Toulouse School of Management. My research has been published in Energy & Environmental Science and Nature Communications.