2. Cost and capability assumptions#

The model can select either Proton Exchange Membrane (PEM) or Alkaline electrolysers, each with their own costs and efficiencies. These values have been sourced from Aurecon, from work they undertook with the Australian Energy Market Operator (AEMO) and the Commonwealth Scientific and Industrial Research Organisation (CSIRO) for their GenCost model[1].

Electrolyser cost figures can vary significantly by source. The CSIRO/Aurecon figures were chosen due to their recency and because Australia is seen as a similar business environment to New Zealand. We are aware of claims of Alkaline electrolysers from China at very low costs; however, we note that both Aurecon and the International Energy Agency (IEA)[2] have found that once installed in Western countries these costs increase significantly. Should this change in future, the values can be updated.

Projections for future costs are from the GenCost[3] model, using their ‘Current Policies’ scenario for our Steady scenario, and their ‘Post 2050 net zero’ scenario for our Shift scenario.

Electricity costs are excluded from the table below, as they are determined by the model in its solution. Fixed O&M costs include refreshing the electrolyser every 10 years and are from the CSIRO/Aurecon work.

Efficiencies are based on Higher Heating Value. Compression and storage costs apply to sectors that require compressed hydrogen for vehicles (Transport/Agriculture) and are sourced from GHD’s work for CSIRO[4] on hydrogen refuelling stations, using their 1,000kg/day onsite production station.

Table 105 Steady scenario electrolyser costs#
Variable	Unit	PEM	Alkaline	Source
CAPEX (2023)	$/kW	3,004	2,862	Aurecon
CAPEX (2035)	$/kW	2,225	2,120	CSIRO
CAPEX (2050)	$/kW	1,732	1,824	CSIRO

Table 106 Shift scenario electrolyser costs#
Variable	Unit	PEM	Alkaline	Source
CAPEX (2023)	$/kW	3,004	2,862	Aurecon
CAPEX (2035)	$/kW	1,396	1,331	CSIRO
CAPEX (2050)	$/kW	1,183	1,127	CSIRO

Table 107 Other parameters (common to both scenarios)#
Variable	Unit	PEM	Alkaline	Source
Efficiency		66	72	Aurecon
Fixed O&M	$/kW annual	52.6	49.2	Aurecon
Compression + Storage	$/GJ	7.2	7.2	GHD
Lifespan	years	25	25	Aurecon
Availability Factor		80	80	Assumed

Note

All financial costs in all spreadsheets are in New Zealand dollars and exclude GST.