The economic viability of hydrogen production through water electrolysis is increasingly evident, presenting a promising avenue for industry development.
Current mainstream methods of hydrogen production encompass fossil fuel-derived hydrogen, industrial by-product hydrogen, and electrolytic water hydrogen production. Calculations based on an electricity cost of 0.057 USD/kWh reveal that the cost of hydrogen production via alkaline electrolysis is approximately 3.69 USD/kg, while PEM electrolysis incurs a cost of 4.65 USD/kg. Alkaline electrolysis has already achieved cost competitiveness with hydrogen market prices. The cost dynamics of water electrolysis for hydrogen production exhibit high sensitivity to electricity prices. If electricity prices drop below 0.0285 USD/kWh, water electrolysis becomes more cost-effective than gray hydrogen production in the majority of scenarios. Should it dip below 0.0142 USD/kWh, it can achieve full cost parity. The market-driven variability in electricity prices, including instances of zero or negative prices, can be strategically leveraged to yield high returns in hydrogen production from electrolyzed water.
Currently, electrolyzed water accounts for a mere 0.15% of global hydrogen production. Future prospects indicate that green hydrogen stands to benefit significantly from the dual dynamics of increased hydrogen energy adoption and a higher share of green hydrogen in the hydrogen energy mix, leading to substantial growth. Electrolyzed water equipment is poised to be at the forefront of this expansion. Projections estimate the global electrolyzed water equipment market to reach 2.39 billion USD by 2025, with a remarkable compound annual growth rate (CAGR) of 106% from 2022 to 2025. Anticipated market expansion foresees the global electrolyzed water equipment market reaching nearly 214.29 billion USD by 2050.