Levelised Cost of Hydrogen (LCOH) Calculator

Calculate the total cost of producing hydrogen over the lifetime of your project

How to Use This Calculator

Input Parameters

Electrolyser Parameters

Electrolyser Capacity
Rated power output of the electrolyser in megawatts (MW)
Electrolyser Cost
Cost per kilowatt of electrolyser capacity in USD

Operating Parameters

Electricity Cost
Cost of electricity per megawatt-hour in USD
Electricity Consumption
Energy required to produce 1 kg of hydrogen in kilowatt-hours
Water Cost
Cost of water per cubic meter in USD
Water Consumption
Amount of water required to produce 1 kg of hydrogen

Project Parameters

Operating Hours
Number of hours the electrolyser operates per year
Project Lifetime
Expected lifetime of the project in years
Discount Rate
Annual discount rate used for present value calculations
OPEX Percentage
Annual operating expenses as a percentage of capital costs

Stack Parameters

Stack Replacement Interval
Number of years between stack replacements
Stack Cost Percentage
Cost of stack replacement as a percentage of electrolyser cost

Example Case

For a 10 MW electrolyser project:

Electrolyser Capacity: 10 MW
Electrolyser Cost: $2,000/kW
Electricity Cost: $110/MWh
Electricity Consumption: 53 kWh/kg H₂
Operating Hours: 4,000 hours/year
Project Lifetime: 20 years
Discount Rate: 6%
OPEX Percentage: 2% of CAPEX
Stack Replacement: Every 5 years
Stack Cost: 30% of electrolyser cost

Example Results:

LCOH
$5.66/kg H₂
Annual Production
754,717 kg H₂/year
Total Production
15,094,340 kg H₂

Technical Considerations

Electrolyser Efficiency

  • Typical electricity consumption ranges from 45-55 kWh/kg H₂ for PEM electrolysers
  • Alkaline electrolysers may have slightly higher consumption (50-60 kWh/kg H₂)
  • System efficiency decreases with age and requires regular maintenance

Operating Parameters

  • Optimal operating hours typically range from 6,000-8,000 hours/year
  • Higher utilization rates may reduce LCOH but increase maintenance costs
  • Consider seasonal variations in electricity prices

Cost Factors

  • Electrolyser costs are decreasing rapidly with scale and technology advancement
  • Stack replacement costs typically range from 20-40% of initial electrolyser cost
  • Water costs are usually a minor component of total costs
  • Electricity costs typically represent 60-80% of total OPEX

Project Economics

  • Typical project lifetimes range from 15-25 years
  • Discount rates should reflect project risk and financing costs
  • Consider potential revenue from oxygen byproduct
  • Include grid connection and balance of plant costs in CAPEX

Calculation Methodology

LCOH Formula

The Levelised Cost of Hydrogen (LCOH) is calculated as:

LCOH = Total Cost / Total Hydrogen Production

Where:

  • Total Cost = CAPEX + OPEX + Stack Replacement Costs
  • Total Production = Annual Production × Project Lifetime

Cost Components

  • CAPEX:

    CAPEX = Electrolyser Capacity (kW) × Electrolyser Cost ($/kW)

  • Annual OPEX:

    Annual OPEX = CAPEX × (OPEX % / 100)

  • Electricity Costs:

    Annual Electricity Cost = Electricity Cost × Electricity Consumption × Annual Production / 1000

  • Water Costs:

    Annual Water Cost = Water Cost × Water Consumption × Annual Production / 1000

Production & Discounting

  • Annual Production:

    Annual Production = (Electrolyser Capacity × Operating Hours) / Electricity Consumption

  • Present Value Calculation:

    PV = Future Value / (1 + Discount Rate)^Year

  • Stack Replacement:

    Stack Cost = CAPEX × (Stack Cost % / 100)

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