Alkaline electrolyzers may seem like the most affordable option \u2014 after all, alkaline has been around for decades longer than PEM. However, progressions in PEM technology have changed its cost.<\/p>\n\n\n\n
An analysis of both types of electrolyzers shows that the stack cost of an alkaline electrolyzer is lower than PEM. But when it comes to the complexity and cost of balance of plant (BOP) as the system size increases, PEM is lower, according to the Fraunhofer Institute for Solar Energy Systems ISE<\/a>. In fact, the total cost of ownership of a PEM electrolyzer is lower than alkaline with forecasters estimating that PEM service costs are one-third of alkaline.<\/p>\n\n\n\n When scaling an electrolyzer, PEM has significant cost advantages in balance of plant economics. On a per-kilowatt basis, the capital expenditure associated with an alkaline electrolyzer increases significantly as the system scales. With PEM, there are options for streamlining BOP to minimize upfront cost in larger systems above 10 megawatts.<\/p>\n\n\n\n When considering output pressure, standard alkaline electrolyzers deliver output at a low pressure of 1 to 10 bar, which is a nearly ambient pressure. For most applications, hydrogen must be further compressed for transport, storage, or consumption. On the flip side, Plug\u2019s PEM electrolyzers have an output of 40 bar \u2014 that\u2019s 4 to 40 times of a typical alkaline system.<\/p>\n\n\n\n Pressure is generated by the electrochemical process in the stack, meaning PEM avoids first stage compression to bring it up to 40 bar, and bypasses the energy costs associated with compressor operation.<\/p>\n\n\n\n Alkaline\u2019s caustic electrolyte solution can also ratchet up its hefty price tag. For example, a 10 to 20-year-project means a long term need to replace parts such as pumps and valves, or the removal of potassium hydroxide from the hydrogen jackpot party casino game or oxygen streams. The 3.5 ton per megawatt requirement for highly-corrosive potassium hydroxide in alkaline systems typically incur significant space requirements \u2013 often two to three times the space of Plug\u2019s PEM system for a similar output. Any losses in space can lead to losses in revenue.<\/p>\n\n\n\n Finally, the cost of safety is another measurement businesses should consider. Increased safety concerns with alkaline electrolyzers lead to more required safety equipment, labor, permitting, and compliance costs for businesses, and worst of all,<\/ins> putting worker well–<\/ins>being at risk. With PEM electrolyzers, technicians and operators only deal with one \u201cchemical\u201d while working on PEM systems \u2013 water.<\/p>\n\n\n\n This is just the beginning of the cost differences. However, analysts believe that technology will only improve the costs of PEM electrolyzers while alkaline technology has already achieved most of its potential cost reductions.<\/p>\n\n\n\n Global electrolyzer capacity is expected to grow at a compound annual growth rate of 78% over the next decade, rising from 0.5 gigawatts (GW) of installed capacity in 2022 to 84.7 gigawatts in 2031, according to a March 2022 report from Guidehouse Insights<\/a>, a marketplace advisory firm that covers the energy industry.<\/p>\n\n\n\n The International Renewable Energy Agency noted<\/a> in 2020 that the post-2020 generation of electrolyzer projects are expected to move from niche to mainstream and escalate from megawatt to gigawatt in scale. Industry\u2019s goals are to reach lower cost, higher durability, and higher efficiency for electrolyzers over time, which will require scaled production, more manufacturing power, and research-driven technological advancements.<\/p>\n\n\n\n Plug is utilizing its own PEM electrolyzer technology to build out North America\u2019s first end-to-end green hydrogen production network, with an estimated 565 megawatts of product being installed across this network today at plants in Georgia, New York and jackpot party casino free coins Texas, and more capacity to come into the network in future phases.<\/p>\n\n\n\n Looking more broadly across the globe, by 2025, Plug will have electrolyzer projects ranging from 1 megawatt to 1 gigawatt deployed across five continents helping to decarbonize a multitude of applications, including refineries, chemical and fertilizer production, manufacturing and heavy industry, heating homes and buildings, and powering fuel-cell electric vehicles. That\u2019s right \u2013 1 gigawatt.<\/em><\/strong><\/p>\n\n\n\n Some of the biggest electrolyzer projects Plug is working on include an order for a 1 gigawatt PEM electrolyzer with H2 Energy<\/a> to produce 432 tons per day of green hydrogen using offshore wind in Denmark. In partnership with Fertiglobe\u2019s Green Hydrogen Consortium, Plug is also the technology provider for a 100 megawatt PEM electrolyzer project in Egypt<\/a> to produce green ammonia.<\/p>\n\n\n\n This is just the tip of the iceberg as more business and government leaders look for clean energy solutions that can be produced locally and independently from the grid. Plug is proud to the lead the way.<\/p>\n\n\n\n Interested in exploring how Plug can help your company improve operations with our<\/a> best-in-class green hydrogen electrolyzer products<\/a>? Contact us<\/a> today.<\/p>\n\n\n\n\n","protected":false},"excerpt":{"rendered":" The demand for electrolyzers is quickly growing with the realization that companies need to transition to renewable energy sources to sustain the world we live in. What is driving the demand for a PEM electrolyzer and an alkaline electrolyzer? The growing list of economically feasible end-use applications for green hydrogen unlocked by lower renewable electricity ...<\/p>\n","protected":false},"author":18,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[2],"tags":[],"yst_prominent_words":[1755,2029,2529,2020,219,2028,1912],"class_list":["post-9485","post","type-post","status-publish","format-standard","hentry","category-blog"],"acf":[],"aioseo_notices":[],"yoast_head":"\n![\"PEM](\"https:\/\/www.plugpower.com\/wp-content\/uploads\/2022\/06\/PemAlkaline-01.jpg\")
<\/figure>\n\n\n\n![\"PEM](\"https:\/\/www.plugpower.com\/wp-content\/uploads\/2022\/06\/siteability-01.jpg\")
<\/figure>\n\n\n\nMarket Growth for Electrolyzers<\/strong><\/h2>\n\n\n
![\"History](\"https:\/\/www.plugpower.com\/wp-content\/uploads\/2022\/06\/timeline-413x1024.jpg\")
<\/figure><\/div>\n\n\nPlug is Paving the Way with PEM Electrolyzer Technology<\/strong><\/h2>\n\n\n\n