The US Department of Energy (DOE) released a report that highlights ways to reduce the cost of producing clean hydrogen via electrolysis. The report shows that electrolysis has the potential to achieve the aggressive DOE Hydrogen Shot goal of reducing clean-hydrogen production costs to $1 per kilogram (kg), and it details innovations needed, along with the necessary advancements in manufacturing, technology efficiency, and integrated energy systems.

This report documents the current state of development of five different electrolyzer technologies: proton exchange membranes, liquid alkaline, oxide-ion-conducting solid-oxide electrolyzer cells, alkaline exchange membranes, and proton-conducting solid-oxide electrolyzer cells. Boundary-level techno-economic analysis—using grid scenarios for electricity cost—shows that the current cost of hydrogen produced from these types of electrolyzers ranges from approximately $6/kg to $8/kg (depending on the electrolyzer technology), while recognizing that grid electricity does not currently qualify as clean, and that indirect emissions from grid- connected electrolysis can be significant.

Further analysis also shows that the Hydrogen Shot goal of $1/kg for clean hydrogen produced by water electrolysis powered by clean electricity is aggressive, but potentially achievable in the future, if we develop advanced technologies, manufacture them at scale, and leverage ongoing cost reductions in clean electricity generated by diverse renewable and/or nuclear resources across the nation.

—Hydrogen Shot: Water Electrolysis Technology Assessment

This report is the second of three assessments of clean-hydrogen production pathways. The first report, Hydrogen Shot Technology Assessment: Thermal Conversion Approaches, examines hydrogen production processes that use heat to convert fossil and/or waste feedstocks (with carbon capture and sequestration). The third and final report in this series will provide a similar technology assessments of hydrogen production from advanced pathways, which include processes that use sunlight to directly split water without the use of electricity.

Achieving the Hydrogen Shot’s cost reduction goal can unlock new markets for hydrogen, including steel manufacturing, clean ammonia, energy storage, and heavy-duty trucking—boosting domestic energy security and resilience.