Hydrogen Production from Water
Hydrogen Production Costs Report | Issue D | Q4 2024
Report Details |
10 MM Nm3/y United States-based plant | Q4 2024 | 107 pages |
This report presents a cost analysis of a 10 MM Nm3/y (MM Nm3 per year) United States-based plant. You can add a customized cost analysis, assuming another location (country), when ordering a premium edition of this report.
Report Abstract
This study approaches the economics of Hydrogen production using a water electrolysis process in the United States. In this process, electricity is used to split water into Hydrogen and oxygen. An alkali solution is used as electrolyte.
The report provides a comprehensive study of Hydrogen production and related Hydrogen production cost, covering three key aspects: a complete description of the Hydrogen production process examined; an in-depth analysis of the related Hydrogen plant capital cost (Capex); and an evaluation of the respective Hydrogen plant operating costs (Opex).
The Hydrogen production process description includes a block flow diagram (BFD), an overview of the industrial site installations, detailing both the process unit and the necessary infrastructure, process consumption figures and comprehensive process flow diagrams (PFD). The Hydrogen plant capital cost analysis breaks down the Capex by plant cost (i.e., ISBL, OSBL and Contingency); owner's cost; working capital; and costs incurred during industrial plant commissioning and start-up. The Hydrogen plant operating costs analysis covers operating expenses, including variable costs like raw materials and utilities, and fixed costs such as maintenance, labor, and depreciation.
Process Schematic

The process under analysis comprises two major sections: (1) Electrolysis; and (2) Hydrogen purification.
Electrolysis. The circulating electrolyte (potassium hydroxide solution) is mixed with demineralized water and fed to the electrolyzer system (filter press type with bipolar electrodes separated by diaphragm). Oxygen gas is generated during the electrolysis at the anode, while Hydrogen is formed at the cathode. The gas from each cell is passed through a different liquid/gas separator. The electrolyte solution streams, recovered from each separator, are mixed and recycled back to the electrolyzers. The oxygen gas obtained is vented to the atmosphere, while Hydrogen generated is routed to the purification section.
Hydrogen purification. The Hydrogen product from the electrolysis contains residual traces of electrolyte entrained in the gas. Most of such impurities are removed by direct contact with fresh demineralized water in a gas scrubber. The water containing the traces of recovered electrolyte is sent to the electrolysis, while the Hydrogen gas is sent to a gas holder, installed to mitigate any fluctuations in the Hydrogen stream. Hydrogen is then compressed to 30 bar and subsequently passed through deoxidizing and drying steps. In the deoxidizing step, the residual oxygen is removed from hydrogen by catalytic reaction with hydrogen and, in the drying step, the moisture contained in the Hydrogen is removed by adsorption in a molecular sieve dryer. The purified Hydrogen product is finally directed to nearby consumers.
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Production Process Information
Process Consumptions
Labor Requirements
Plant Capital Cost Summary
Operating Cost Summary
Production Costs Datasheet
Plant Capital Cost Details
Operating Cost Details
Plant Cost Breakdowns
Plant Capacity Assessment
Process Flow Diagrams
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Content Highlights
Plant Capital Cost Summary
Summary outlining the capital cost required for building the Hydrogen production plant examined
Plant Capital Cost Details
Detailing of fixed capital (ISBL, OSBL & Owner’s Cost), working capital and additional capital requirements
Plant Cost Breakdowns
Breakdown of Hydrogen process unit (ISBL) costs and infrastructure (OSBL) costs; plant cost breakdown per discipline
Operating Costs Summary
Summary presenting the operating variable costs and the total operating cost of the Hydrogen production plant studied
Operating Cost Details
Detailing of utilities costs, operating fixed costs and depreciation
Plant Capacity Assessment
Comparative analysis of capital investment and operating costs for different Hydrogen plant capacities
Production Process Information
Block Flow Diagram, descriptions of process unit (ISBL) and site infrastructure (OSBL)
Process Consumptions
Raw materials and utilities consumption figures, by-products credits, labor requirements
Process Diagrams
Process flow diagrams (PFD), equipment list and industrial site configuration
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