Austin Power Engineering LLC1 Cameron St

Wellesley, MA 02482USA

www.AUSTINPOWERENG.comyang.yong@austinpowereng.com

© 2019 Austin Power Engineering LLC

1 GW Hydrogen Electrolyzer Plant Design and Cost Analysis

Yong Yang

President

November 7, 2019

1

Austin Power Engineering LLC is an independent technology consulting company that focuses mainly on bottom-up technical cost modeling.

Source: Dr. Rajesh Ahluwalia of ANL

HT/LT Radiators

Demister

Electric Motor

PEFC

Stack

AirExhaust

Humidified Air

HT Coolant

Enthalpy

Wheel

LT Coolant

Purge Valve

Recirculation Pump

LT Coolant Pump

HT Coolant Pump

Fan

Ejector

Pressure RegulatorMembrane

Humidifier

Dilution Mixer

Air Filtration

Hydrogen

Tank

Air Bypass

HT/LT Radiators

Demister

Electric Motor

PEFC

Stack

AirExhaust

Humidified Air

HT Coolant

Enthalpy

Wheel

LT Coolant

Purge Valve

Recirculation Pump

LT Coolant Pump

HT Coolant Pump

Fan

Ejector

Pressure RegulatorMembrane

Humidifier

Dilution Mixer

Air Filtration

Hydrogen

Tank

Air Bypass

Demister

Electric Motor

PEFC

Stack

AirExhaust

Humidified Air

HT Coolant

Enthalpy

Wheel

LT Coolant

Purge Valve

Recirculation Pump

LT Coolant Pump

HT Coolant Pump

Fan

Ejector

Pressure RegulatorMembrane

Humidifier

Dilution Mixer

Air Filtration

Hydrogen

Tank

Hydrogen

Tank

Air Bypass

Cathode pinTop cover

Insulator case

Spring plate

Anode can

Anode

Cathode

Separator

Cathode lead

Safety vent

Gasket

Insulator

Terminal plate

CID

2019 YY

Hydrogen

Electrolysis

Hydrogen

Storage

Fuel Cell Battery

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Hydrogen & Fuel Cell Manufacturing Cost Modeling

2014 2015 2016 2017 2018 2019

Arthur D Little / TIAX Austin Power Engineering

Introduction Overview

2

We will analyze a 1 GW (200,000 Nm3/hr / 500 ton H2 per day) hydrogen electrolysis plant capex.

2019 YY

Project Objective

Total Project CostStack + BOP

Factory CostOEM MarkupX= Additional Project

Cost+

Electrolysis Plant CAPEX

Directlabor

DirectMaterials

FactoryExpense

General

Expense

Sales

Expense

Profit

Sale Price / Capex

Fixed Costs

• Equipment and Plant Depreciation

• Tooling Amortization

• Equipment Maintenance

• Utilities

• Indirect Labor

• Cost of capital

• Overhead Labor

• Building

Variable Costs

• Manufactured Materials

• Purchased Materials

• Fabrication Labor

• Assembly Labor

• Indirect Materials

Corporate Expenses

• Research and Development

• Sales and Marketing

• General & Administration

• Warranty

• Taxes

Factory Cost

* Have done 200 kW, 1MW, 2 MW, 10

MW, 50 MW, 100 MW, 250 MW, 500 MW

hydrogen electrolysis plant cost analysis

for various clients.

3

Approach Manufacturing Cost Modeling Methodology

This approach has been used successfully for estimating the cost of various technologies for commercial clients and the DOE.

Technology

Assessment

Manufacturing

Cost Model

Scenario

Analyses

Verification &

Validation

• Literature research• Definition of system and component diagrams• Size components• Develop bill-of-materials (BOM)

• Define system value chain• Quote off-shelve parts and materials• Select materials• Develop processes• Assembly bottom-up cost model •Develop baseline costs

• Technology scenarios• Sensitivity analysis • Economies of Scale• Supply chain & manufacturing system optimization• Life cycle cost analysis

• Cost model internal verification reviews• Discussion with technical developers• Presentations to project and industrial partners• Audition by independent reviewers

Membrane

8.0%

Stack

Conditioning

2.7%

Seal

8.4%

Balance of Stack

2.4%

Bipolar Plate

26.1%

GDL

5.1%

Electrode

41.0%

Stack Assembly

6.3%

2019 YY

Anode Ink

Anode Side

Catalyst Layer

Membrane

Processes

Cathode Side

Catalyst Layer

Cathode Ink

Hot Press

Lamination

Purchased GDL

Purchased GDL

Pt

Pt

Nafion®

Ionomer

99.9% 98.5%

99.9% 98.5%

99% 98.5%

100% 98.5%99% 98.5%

99% 98.5%

100% 100%

100% 100%

100% 100%

100% 100%

100% 100%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

3-Year TCO 5-Year TCO 10-Year TCO 15-Year TCO

To

tal

Co

st

of

Ow

ers

hip

($

)

PEMFC Plug Hybrid Vehicle

Full Battery Electric Vehicle

4

Combining performance and cost model will easily generate cost results, even when varying the design inputs.

2019 YY

Process Simulation

Energy requirements

Equipment size/ specs

Product Costs

Product cost (capital,

O&M, etc.)

Conceptual Design

System layout and

equipment requirements

Capital Cost EstimatesSite Plans

Safety equipment, site

prep, land costs

High and low volume

equipment costs

Air (POX only)

Nat. Gas

Water

Fuel

Reformer PSA

H2-rich gas

H2-poor gas

Catalytic

Burner

HeatCold

Water

99.99% pure H2

Low

Pressure

Storage

Medium

Pressure

Storage

High

Pressure

Storage

Flow

cntrlr

Flow

cntrlrFlow

cntrlr

Dispenser

To Vehicle

CO2

H2O

Compressor with intercoolers

Cooling

Tower

Process cost

Material cost

Tape Cast

Anode

Powder Prep

Vacuum

Plasma

Spray

Electrolyte

Small Powder

Prep

Screen

Print

Cathode

Small Powder

Prep

Sinter in Air

1400CSinter in Air

Forming

of

Interconnect

Shear

Interconnect

Vacuum

Plasma

Spray

Slurry

Spray

Screen

Print

Slurry Spray

Slip Cast

Finish Edges

Note: Alternative production processes appear in gray to the

bottom of actual production processes assumed

Braze

Paint Braze

onto

Interconnect

Blanking /

Slicing

QC Leak

Check

Interconnect

Fabrication

Electrolyte CathodeAnode

Stack Assembly

Fuel Station Perimeter

Electrolyzer or SMR,

High-Pressure

Compressor

H2 High Pressure

Cascade Storage

System

Gaseous Fuel

Dispensing Islands

Underground Piping with shared conduit

Vent

Building

Covered Fueling Island

CNG High Pressure

Cascade Storage System

Fire Detector

Walls with minimum fire rating of 2 hours

Wall openings (doors & windows)

Building intake vents

Adjoining property that can be built on

Public sidewalks, parked vehicles

Streets

Railroad tracks

Other flammable gas storage

5 ft

25 ft

50 ft

10 ft

15 ft

10 ft

15 ft

10 ft

Minimum set-back distances for hydrogen and/or natural gas

storage (more stringent gas noted if relevant)

Property of:

TIAX LLC

1061 De Anza Blvd.

Cupertino, CA 95014

Task 5 CNG/Hydrogen Fueling

Site Plan - Fueling Station

Hydrogen and CNG fueling station

SIZE DWG BY DWG NO REV

A Stefan Unnasch B0228 - S0022 1

SCALE 1" = 8 ft 5 Jan 2004 SHEET 1 OF 110 ft

Security FenceNG line in

ft

ft

ft

ft

ft

ft

ft

ft

Process Cost Calcs

Material

Process

$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

$10

Lapp

ing

CM

P

Wet

ther

mal O

xida

tion

Spin

Coa

ting

Wet

Etching

SiO

2

DC S

putte

ring

Ni

RF S

putte

ring

E

Spin

Coa

ting

Stepp

er

DC S

putte

ring

Ag

Stripp

ing

Spin

Coa

ting

Stepp

er

Dry

Etchi

ng S

iO2

DRIE

Si

Wet

Etching

SiO

2

Dry

Etchi

ng N

I

Wafe

r C

ost

($)

Approach Manufacturing Cost Modeling Methodology

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

3-Year TCO 5-Year TCO 10-Year TCO 15-Year TCO

To

tal

Co

st

of

Ow

ers

hip

($

)

PEMFC Plug Hybrid Vehicle

Full Battery Electric Vehicle

5

1 GW hydrogen electrolyzer plant boundary limits:

2019 YY

Electrolyzer stack

Balance of plant

AC-DC power supply

System control

Feed water treatment

Gas / liquid loops

Compressor (if needed)

De-oxygen unit

Gas drying

Cooling system

Piping, fitting, valves,

instrument

Assembly, conditioning,

testing, packaging

Hydrogen Output

30 barg

Oxygen limit: <5 ppm

Moisture content:

-65 oC dew point

Grid connection

Optional additional hydrogen

compression

Optional hydrogen storage

Peripheral components

Project development

Permitting

Engineering

Civil works and installation

Land use

Selling, general and

administrative expenses,

margins

Capex

Included in analysis Highly site and situation-specificIndicative estimated for engineering and

project cost is given separately based on

textbook factors

Approach Project Scope

Approach Cost Reduction Options

62019 YY

Comparing large scale hydrogen electrolysis plant with small hydrogen electrolyzer, cost reduction mainly comes from the following areas:

1. Improve stack performance

• Increase current density

• Simplify stack structure

• Reduce precious metal loading

2. Large scale production

• Process automation, etc.

3. Increase the stack size

• Current 1~5 MW

• Future 5~20 MW

4. System BOP optimization

• Power supply

• Mechanical compressors if apply

• H2 gas purification

5. Low cost region manufacturing

Modular vs Integrated

• Capex

• Project cost

• O&M cost

Approach Stack Options

72019 YY

We screened major electrolyzer manufacturer’s MW level electrolyzer stacks.

Alkaline

electrolyzer

PEM

electrolyzer

Hight temperature

electrolyzer

Atm. pressure Pressurized Atm. pressure Pressurized SOEC

Proton

Conductive

SOEC

Commercial

Pre-commercial

• NEL A485 2.3 MW • McPhy 2 MW Module

• Chinese Manufacturers

- Peric

- Jingli

- Tianjin Continental

• NEL/GHW• ThyssenKrupp

• Asaki Kasei

• Siemens

• Hydrogenics 3MW

• ITM Power 2MW Module

• NEL/Proton Onsite MW

Module

• Giner EXL 1MW

• Siemens 1~2 MW

• >Potential 10 MW stacks

• Tubular

• Planar

The chosen cell voltages and current densities are based on current technology status.

8

• The chosen cell voltage (1.75V) largely determines the cell efficiency (85% HHV)

• This low cell voltage is used to reflect that such large plants will be optimized for efficiency.

• Assume current atm. pressure alkaline electrolyzer current density is 175 mA/cm2

• Assume current PEM electrolyzer current density is 1,500 mA/cm2.

2019 YY

Approach Stack Options

Current Technology

Future Technology

Approach BOP Options

92019 YY

We must consider the capex, project cost, as well as O&M cost when we design the electrolysis plant project.

BOPModular

Design

Integrated

Design

Capex $$$ $$

Project Cost $ $$$

O&M Cost $$$ $$

Outdoor Modular Design Integrated BOP Design

10

Major stack specifications summary:

2019 YY

Design Scenarios 1 GW Hydrogen Electrolysis Plant Stack

Parameter

Alkaline

Electrolyzer

Current KPI

Alkaline

Electrolyzer

Future KPI

PEM

Electrolyzer

Current KPI

PEM

Electrolyzer

Future KPI

Plant size (MW, DC basis) 957 960 960 960

Stack size (MW) 2.3 10 2.5 10

# of stacks 416 96 384 96

Cell voltage (V) 1.75 1.75 1.75 1.75

Current density (A/cm2) 0.175 0.75 1.50 2.50

# of cells 258 258 258 258

Stack voltage (VDC) 452 452 452 452

Stack Current (A) 5,088 22,124 5,531 22,124

Cell active area (cm2) 29,077 29,499 3,687 8,850

Actual cell area (cm2) 34,208 34,704 4,852 11,644

Operating Pressure (barg) 0.02 .06 30 30

Stack production volume (GW/year) 1 1 1 1

Purity (%) 99.99 99.99 99.99 99.99

Oxygen limit <5 ppm <5 ppm <5 ppm <5 ppm

Moisture content - 65 °C dew point - 65 °C dew point - 65 °C dew point - 65 °C dew point

11

Major BOP components summary:

2019 YY

Design Scenarios 1 GW Hydrogen Electrolysis Plant BOP

Parameter

Alkaline

Electrolyzer

Current KPI

Alkaline

Electrolyzer

Future KPI

PEM

Electrolyzer

Current KPI

PEM

Electrolyzer

Future KPI

Power supply x x x x

H2 gas/liquid separator x x x x

O2 gas/liquid separator x x x x

H2 gas lye scrubber x x

H2 booster compressor x x

De-oxo unit x x x x

TSA dryer x x x x

DI water system x x x x

Stack cooling system x x x x

H2 gas chiller before boost compressor Included in the boost

compressor cost

Included in the boost

compressor cost

Included in the boost

compressor cost

Included in the boost

compressor cost

H2 gas chiller before TSA dryer Included in the deoxo

unit cost

Included in the deoxo

unit cost

Included in the deoxo

unit cost

Included in the deoxo

unit cost

# set of BOPs in system 2 2 2 2

Current Alkaline: 1 GW Alkaline (2.3 MW stack), 2 sets of BOP, simplified P&ID

12

O2 VentPTTC

FACILITY INTERFACE

Vents to atmosphere outside facility

Tap Water

H2 Vent

H2 Port

Non Return Valve

Solenoid Valve

TC

DI Water Treatment

PT TC

Solenoid Valve

Manual Valve

Check Valve

Pressure Release Valve

Process Filter

Ad

sorp

tion

Regen

eratio

n

TSADryer

Compressor

Electronic

Level SensorL

PT TC

Pressure Relieve Valve

Piston Pump

PTPressure Transducer

TCPressure Transducer

LEGEND

P Pressure Gauge

P

3-Way Manual Ball Valve

T1

Gas/Liquid Separator

DrainVessel

H1

L

x

TC

PTTCPT2

Gas/Liquid Separator

H2

L

xTC

To Lye Tank

PTTCPDry Cooling / Cooling Tower(Lye Cooling)

InstrumentAir

Nitrogen

De-oxoUnit

Cooling Water Outlet

Cooling Water Inlet

TCT3

Lye Scrubber

H2

L

x

TC

To Lye Tank

Lye Tank

Water Filtration

24 VDC Power

Supply

Power 110 VAC

Power 380VACControl System

230 kV 3 Phase

Auxiliary Power

Rectifier 452VDC;

Rectifier Transformer x 2866KV AC

……

Group 1

Group 25

Group 26

Power Transformer230KV AC / 66kV AC

…… 16 stacks

…… 16 stacks

…… 16 stacks

P

Cooling Water Inlet

Cooling Water Outlet

HydrogenCompressor

H2 BufferTank

Set # I BOP for stack group 1-13

Set # 2 BOP for stack group 14-26

Circulation Pump

Manual Valve

Circulation Pump

2019 YY

13

Current Alkaline 1 GW Plant Layout

2019 YY

450 meter

100meter

42meter

150 meter

40 meter

230KVSubstation

Indoor

Indoor

10 meter

20 meter

Alkaline 2.3MW x 416Total area: 172 m x 450 m =77,400m2

Indoor area: 48,880 m2

60 x 30 meter

Indoor

System Control& Offices

Gas/ liquid separationKOH Scrubber De-oxo TSA Dryer

4 meter

7 m

eter

DI Water

20 meter

10 meter

KOH Scrubber De-oxo TSA DryerGas/ liquid separation

20 meter

10 meter

Compressor

14

Atmospheric pressure alkaline electrolyzer design:

Key Parameters

Diaphragm

• Zirfon Perl ® diaphragm

• 0.5 mm thickness

Anode Electrode

• Substrate: 0.3 mm Ni Mesh

• Coating: NiAl (56/44)wt; 90 µm

Cathode Electrode

• Substrate: 0.3 mm Ni Mesh

Frame / Structure Ring

• Machined Carbon steel with PTFE

coating

Cell gasket

• EPDM

• 1 mm thickness

Separator Plate

• Ni coated carbon steel

• 2 mm thickness

US patent: 9,556,529

Current Alkaline: Stack Overview

2019 YY

15

Anode, cathode, and bipolar plate fabrication processes:

2019 YY

Current Alkaline Electrode and Bipolar Plate Current Process Assumptions

Sand

Blasting

SS Mesh Sheet

HCl

Etching

Vacuum

Plasma

Spraying

Anode:

Separator Plate Laser Cutting

Cathode:

Ni Mesh Sheet

Assembly Inspection

NiAl

Laser

Cutting

Press

Stamping

MachiningNickel

Coating

Laser CuttingPress

Stamping

Carbon Steel

16

Diaphragm and cell frame fabrication processes:

2019 YY

Welding

Carbon Steel

Turning Milling

Frame:

Gas/liquid Separator Chamber

Membrane Support Ring

Carbon Steel

Membrane

Assembly

Inspection

Plasma

Cutting

Bending

(round)

Laser CuttingNickel

Coating

PTFE

Coating

Membrane O-ring

Membrane

PPS Felt

Water Jet

Cutting

Plasma

Cutting I Welding Machining

Carbon Steel

Nickel

Coating

Plasma

Cutting II

Frame

Assembly

Current Alkaline Cell Frame and Membrane Diaphragm

We designed the stacks based on patents and public available information, etc.

17

Future Alkaline Scenario:

10 MW Atm. Pressure Alkaline Electrolyzer Stack

2019 YY

Other Stack Scenarios Overview

Anode

Diaphragm

Cathode

Cathode Side Elastic Layer

Cathode Side Current Distribution Layer

Cathode Side Cell Shell

Cell Gaskets

Cell Pitch 6mm US patent: US 9,556,529

Single Element Cell

Anode Side Cell Shell

Anode Side Current Distribution Layer

Current PEM Scenario:

2.5 MW 30 Barg PEM Electrolyzer Stack

Anode

Membrane

Cathode

Cell Bipolar plate

Cell frame Frame

Gasket

Repeat cell components

MEA gasket

MEA gasket

PTL

PTL

Anode side

Cathode side

Cell frame

Frame seal

Frame seal

H2

O2

Sintered Ti foam

Sintered Ti foam

Formed Ti Plate

Formed Ti Plate

Cell frame

Frame seal

Frame seal

Future PEM Scenario:

10 MW 30 Barg PEM Electrolyzer Stack

Anode

Membrane

Cathode

Cell Bipolar plate

Cell frame Frame

Seal

US patent: US20170088959A1

Repeated cell components:

MEA gasket

MEA gasket

PTL

O2, Anode side

H2, Cathode side

Cell frame

Sintered Ti

foam

Sintered Ti

foamTi wire mesh

Ti wire mesh

Ti wire mesh

Ti wire mesh

PTL

Frame seal

Cell frame

Frame seal

Carbon

Paper

Carbon Paper

We assume there are two sets of BOP systems which make the system easy to maintain and give the benefit of resiliency.

18

Example Power Supply Diagram

2019 YY

Example De-oxygen & TSA Dryer Diagram

BOP Components

Major BOP

ComponentsDescriptions

Power supply 230KV Substation; N+1 transformer

design

H2 gas/liquid separator Integrated

O2 gas/liquid separator Integrated

H2 gas lye scrubber Integrated

H2 booster compressor ~20,000 HP x 2

De-oxo unit Pt on Al2O3 pellets at 108 Co

TSA dryer UOP Molesieve pellets

DI water system Electric conductivity, <1 Siemens/cm for

PEM; <5 Siemens/cm for Alkaline

Stack cooling system ~20,000 cooling tons

0

500

1000

1500

2000

2500

3000

Today 1~2 MW Electrolyzer Capex 1 GW electrolyzer Plant Capex

Elec

tro

lyze

r C

apex

($/k

W)

19

• Today 1~2 MW electrolyzers’ capex ranges from $600/kW to $2,000/kW

• Modelled 1 GW electrolyzers’ capex ranges from $400/kW to $600/kW1

Estimated 1 GW electrolyzer plant capex fall into the range of between $400/kW and $600/kW.

2019 YY

Capex Summary

2

1. Made in US or western Europe countries; cell efficiency is about 85%; output H2 gas purity is 99.99% at 30 barg

2. Units made in China and sold in China only; as low as $200~300/KW

0

500

1000

1500

2000

2500

3000

Today 1~2 MW Electrolyzer Total Project Cost 1 GW electrolyzer Plant Total Project Cost

Tota

l Pro

ject

Co

st (

$/k

W)

Total project cost also includes project “soft” cost which is highly site and situation specific.

20

• Typical Project “Soft”

Cost

• Permitting

• Building (including

service facilities)

• Engineering &

supervision

• Installation

• Legal expense

• Contract fee

• Contingency

2019 YY

Total Project Cost Discussion

• Container based 1~2 MW electrolyzers’ project cost is minimum

• 1 GW electrolyzer plant total project cost ranges from $600/kW to $1,800/kW

(additional 50%~200% project “soft” cost)

*

* Units made in China and sold in China only; as low as $200~300/KW

21

Thank You!

Contact: Yong Yang

Austin Power Engineering LLC

1 Cameron St,Wellesley, MA 02482

+1 781-239-9988+1 401-829-9239

yang.yong@austinpowereng.comwww.austinpowereng.com

Online research report store: http://austinpowereng.com/store.php

2019 YY