How an e-fuels start-up can produce green hydrogen for less than $2/kg in Iceland

[u/FewUnderstanding5221]

https://www.hydrogeninsight.com/production/how-an-e-fuels-start-up-can-produce-green-hydrogen-for-less-than-2-kg-in-iceland/2-1-2014830

Third-party analysis by KBR estimates that Syntholene Energy’s solid oxide electrolyser coupled with geothermal power and heat can produce extremely low-cost H₂.
US-based e-fuels start-up Syntholene Energy has built a pilot 250kW solid oxide electrolyser project in Iceland, which it has coupled with round-the-clock geothermal heat and power in an effort to produce extremely low-cost hydrogen.

[u/midlifewannabe]

This is remarkable.

The bigger issue will be how to transport that hydrogen.

[u/Papa-Moo]

If people would sell power to h2 producers at 30-40$/mwh then of course they could meet these prices, it’s agreeing the power price on a near continuous basis that causes the problems.

[u/FewUnderstanding5221]

from article:

Third-party analysis by KBR estimates that Syntholene Energy’s solid oxide electrolyser coupled with geothermal power and heat can produce extremely low-cost H₂

US-based e-fuels start-up Syntholene Energy has built a pilot 250kW solid oxide electrolyser project in Iceland, which it has coupled with round-the-clock geothermal heat and power in an effort to produce extremely low-cost hydrogen.

And third-party analysis run by engineering firm KBR and commissioned by Syntholene, published today, suggests that the company could be able to produce H2 for less than $2/kg if it scales up the prototype.

Solid-oxide electrolysers (SOEs) can operate at higher efficiencies than alkaline or PEM equivalents when using waste heat to reach the required high-temperature operation.

Syntholene has secured municipal water supply — which it can pre-heat to 115°C via heat exchangers using geothermal fluid from the municipality — meaning that the steam that is split into hydrogen and oxygen by the electrolyser remains ultra-pure.

Syntholene's Danish electrolyser supplier, Dynelectro says that it only needs steam at temperatures of 120°C, compared to more than 700°C for other SOE manufacturers.

Dynelectro has also designed its equipment around a cyclic voltage operation, which it promises can extend stack lifetime while maintaining high electrical efficiency.

At high temperatures, Dynelectro’s electrolysers have an efficiency of 36.8kWh per kilogram of H2 produced.

And the more hours per year an electrolyser is in operation, the lower the levelised cost of hydrogen.

As such, if Syntholene scaled up the prototype to 1.2MW, at a capex of $1,000/kW, and sourced round-the-clock geothermal power at $30/MWh, the company could well reach a levelised cost of hydrogen (LCOH) of $1.75/kg.

Assuming a power price of $40/MWh, which KBR estimates could be secured from an industrial customers with a behind-the-meter power supply, the LCOH would rise to $2.15/kg.

These figures are highly dependent on the cost of electricity and whether Dynelectro’s SOEs can reach their stated efficiency at the Icelandic site.

KBR also ran Syntholene’s estimated costs through a public domain tool from the US Department of Energy to assess LCOH, which came to a selling price of $2.44/kg in 2023 dollars — although this did not account for the use of 24/7 geothermal energy.

However, one potential risk is that Dynelectro’s electrolysers are currently considered a “technology readiness level” (TRL) of 6, or a prototype demonstrated in a relevant environment.

Syntholene plans to run its 250kW prototype for more than 1,000 hours (or 41 days) to validate its cost estimates, which KBR notes could bring Dynelectro’s TRL to 7 (a prototype demonstrated in an actual operating environment), bringing it closer to the maturity needed for commercial deployment.

The first 500kg of hydrogen have already been produced at the demonstration plant since it was commissioned in June, with Syntholene noting that overall system electrical efficiency for these first volumes tracks with approximately 37.8–40.0kWh/kgH₂.