Impact of Technology Improvements on the Cost of Hydrogen Produced Using Solid Oxide Electrolysis Cell Technology at Large Scale

National Energy Technology Laboratory (NETL) provides system-level process, cost, and market analyses on solid oxide cell (SOC) based technologies. Specifically, techno-economic analyses (TEA), market assessments, and other technology evaluations serve to guide the U.S. Department of Energy (DOE) Office of Fossil Energy and Carbon Management (FECM) Reversible Solid Oxide Fuel Cell (R-SOFC) Program technology goals and objectives. These studies are key to describing how the technologies contribute to improving domestic energy infrastructure in a clean, efficient manner. This effort focuses on hydrogen generation technologies, which have received recent attention due to their potential role in economy-wide decarbonization. In particular, the study is part of a series of investigations at NETL that seek to understand the techno-economic impacts of including SOC technology in energy production, hydrogen production, and/or storage configurations. The objective of this study is to establish a detailed TEA to assess the effectiveness of incremental technology improvements needed for solid oxide electrolysis cell (SOEC) technology to achieve the U.S. DOE’s Hydrogen Shot goal of hydrogen production at less than $1 per kilogram. To take advantage of the benefits of economies of scale, the SOEC hydrogen facilities are sized to produce ≈250,000 metric tons of hydrogen annually with an electrolysis load of one gigawatt (direct current). Some additional critical assumptions include stacks that operate near the thermo-neutral voltage of 1.28 V to avoid adverse thermal gradients, all necessary steam and heat is generated by electric boilers and heaters to enable green hydrogen production, and an air sweep is used to control the oxygen concentration in the air electrode exhaust stream. A literature review on long-duration SOEC stack tests informed the state-of-the-art basis for the techno-economic pathway. The pathway considers incremental technology improvements to key system parameters, with system performance and cost assessed for each pathway step. Briefly, the steps include cell voltage degradation rate improvements, operational current density increases, operating temperature reduction, improved steam utilization, increased system capacity factor, and reduced cell/stack capital costs. Each step is assessed at both atmospheric and pressurized (8 bar) operating conditions. To supplement assessment at each of these discrete stepwise improvements, sensitivity studies are conducted to understand the relative impact of each parameter and identify avenues for additional cost reductions. Reductions in electricity price and replacing the electric boiler heat duty with waste heat from an existing industrial source are the most sensitive parameters enabling further cost reductions. System efficiency and levelized costs of hydrogen (LCOH) for each case will be presented. Excluding the costs associated with electricity consumption, the direct impact that research and development can have on the LCOH can be made explicit. For the end-of-pathway case, which includes all the incremental research and development improvements, the cost of hydrogen produced is reduced by 50 percent from the state-of-the-art case. These results provide critical guidance to the DOE-FECM R-SOFC Program to set realistic targets for research and development-based improvements of SOC technology for hydrogen production.