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)