The photo is sourced from spectrum.ieee.org
The study by CELA represents the valuation of the green hydrogen production unit costs based on several parameters: accessibility of water and renewable energy sources (RES), which can provide of operating the electrolysers splitting H2O into oxygen and hydrogen; the taxation environment allowing for tax breaks for the companies specialising in hydrogen economy; the easy ways to attract investment for infrastructural projects; potential operational expenses including land tenancy, property insurance and salaries of personnel; amount of CAPEX depending on the possibility to use certain types of electrolysers.
The following three types of such electrolysers are most common today: alkali electrolysers recovering hydrogen from liquid solution electrolyte solution; electrolysers with Proton-Exchange Membrane (PEM) using solid polymer electrolyte for this purpose; and finally, solid-oxide electrolysers splitting water into oxygen and hydrogen using heat and electricity. The first two types operate under 80 degrees Celsius, while as the last one – under +1,000 degrees. The most common ones are alkali and PEM electrolysers, they account for more than 90% of the global green hydrogen production capacity.
Overall, the costs of the green hydrogen production for Brazil are estimated at the level below the global average. According to the Oxford Institute for Energy Studies, in 2020 the unit costs of receiving H2 from water using RES varied in the range from $3.3 to $6.5 per kilogram. Brazil has lower costs due to high share of RES in its electricity generation mix. According to Ember research centre, in 2022 coal-fired, gas-fired and oil-fired power plants in Brazil accounted for 10.9% of electricity generation, nuclear power plants – for 2.1%, while as the remaining 87% constituted the share of hydro power plants, biomass plants, as well as solar and wind generators.