Techno-Economic Assessment of Hydrogen Production via Alkaline Electrolysis: An Electrochemical Model-Based Analysis of Operating Conditions

Abstract

To determine economically optimal operating strategies for alkaline water electrolysis systems, this study developed a comprehensive electrochemical and techno-economic model. The model incorporates stack performance, balance-of-plant (BOP) energy consumption, and variable capital and electricity costs. Simulation results show that system utilization rate is the most influential factor in reducing the levelized cost of hydrogen (LCOH). High utilization and full-load operation significantly lower hydrogen production costs, particularly when electricity prices are high and system capital expenditures (CAPEX) are low. Under certain conditions, such as when electricity prices are high and system costs are low, an optimal partial-load operation point can be found that minimizes the LCOH by balancing stack efficiency with operating expenses. The study also explores trade-offs associated with increasing the number of electrolyzer cells to improve efficiency. It is found that the benefits of improved efficiency offset the additional capital and maintenance costs only when electricity prices are sufficiently high and system costs sufficiently low. These results suggest that appropriate load management and system design optimization are essential to achieving economically viable hydrogen production via alkaline electrolysis, especially in regions with high electricity prices and fluctuating renewable energy supply. Distinct from conventional TEA studies that rely on fixed stack efficiency or simplified BOP assumptions, this work provides an electrochemical-model-based, stack–BOP coupled framework to determine economically optimal operating regimes and design trade-offs.