A techno-economic analysis of decentralized electrolytic hydrogen production for fuel cell vehicles

Hydrogen from decentralized water electrolysis is one of the main fuelling options considered for future fuel cell vehicles. In this study, a model is developed to determine the key technical and economic parameters influencing the competitive position of decentralized electrolytic hydrogen. This model incorporates the capital, maintenance and energy costs of water electrolysis, as well as a monetary valuation of the associated greenhouse gas (GHG) emissions. It is used to analyze the competitive position of electrolytic hydrogen in three specific locations with distinct electricity mix: Vancouver, Los Angeles and Paris. Using local electricity prices and fuel taxes, electrolytic hydrogen is found to be commercially viable in Vancouver and Paris. Hydrogen storage comes out as the most important technical issue. But more than any technical issue, electricity prices and fuel taxes emerge as the two dominant issues affecting the competitive position of electrolytic hydrogen. The monetary valuation of GHG emissions, based on a price of $20/ton of CO2, is found to be generally insufficient to tilt the balance in favor of electrolytic hydrogen. (c) 2005 Published by Elsevier Ltd on behalf of the International Association for Hydrogen Energy.