Norwegian electrolyzer manufacturer Nell has unveiled plans to cut the cost of its electrolyzer by 75% at the 2GW factory – the world’s largest – and plans to reduce the price of green hydrogen to $ 1.50 per kilogram by 2025, Almost the same cost as Gray H2 Fossils derived from fossil fuels.
In his Nail Capital Markets Day presentation on Thursday, Chief Executive Officer John Andre Locke reported that the company will complete its first 500MW production line at its new fully automated alkaline-electrolyzer factory in Heroya, Norway in the second quarter of this year.
“By installing the first 500MW line, we will cut costs by almost half, and when we add additional lines and we advance the design and work on the technology, we need to be able to reduce the cost again by about half. Should, “said.
“And on that journey, we will see that green renewable hydrogen is going to pursue fossil solutions.”
Look unveiled a new target for the production of green hydrogen with a cost of $ 1.50 / kg by 2025, based largely on Nell. [electrolyzer] Facility “.
“It’s basically the equivalent of fossil hydrogen,” he said, adding that the cost would fall further after 2025, making Green H.2 Is cheaper than gray.
The small print in his presentation showed that the price of $ 1.50 / kg was based on renewable energy at $ 20 / MWh, with lifetime costs over 20 years – the cost of land, civil works, installation, commissioning, and operation and maintenance.
The price of electricity represents 70–80% of the cost of green hydrogen, and $ 20 / MWh is a very low cost for any renewable energy. Lazard has set the energy (LCOE) level at $ 26.254 for solar power at $ 26.254 / MWh and $ 29-42 / MWh for solar power, while the cheapest price in the global market is € 11.14 (£ 13.54) MW. Visited the solar project. In Portugal.
Nell did not say when it’s Herø ya factory would ramp up to 2GW, but Eric Locke-Ure, vice president of operations, said at the Capital Markets Day event that “we will add capacity to the market as needed”.
One of Nail’s biggest competitors to ITM Power, earlier this month, began operations at its new 1GW PEM electrolyzer factory in Sheffield, England, with a production line of 350MW that scaled as soon as orders arrived. Will go.
ITM is also planning to build a second gigawatt-scale factory that “maybe 2GW in size”, Chief Executive Graham Cooley recently reported Recharge.