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The Future of Hydrogen Chapter 2: Producing hydrogen and hydrogen-based products produced through water electrolysis, around 2% of total global hydrogen is created as a by- product of chlor-alkali electrolysis in the production of chlorine and caustic soda. With declining costs for renewable electricity, in particular from solar PV and wind, interest is growing in electrolytic hydrogen (Chapter 4) and there have been several demonstration projects in recent years. The efficiency of electrolyser systems today ranges between 60% and 81% depending on the technology type and load factor. Producing all of today’s dedicated hydrogen output (69MtH2) from electricity would result in an electricity demand of 3600terawatt hours (TWh), more than the total annual electricity generation of the European Union. Electrolysis requires water as well as electricity. Around 9 litres of water are needed to produce 1 kgH2,9 producing 8 kilograms (kg) of oxygen as a by-product, which at smaller scale can be used in the health care sector or at a larger scale for industrial purposes. If all of today’s dedicated hydrogen production of around 70 MtH2 were to be produced by electrolysis, this would result in a water demand of 617 million cubic metres (m3), which would correspond to 1.3% of the water consumption of the global energy sector today (IEA, 2016) or roughly twice the current water consumption for hydrogen from SMR (345 million m3 of water for 52 MtH2 from SMR). Freshwater access can be an issue in water-stressed areas. Using seawater could become an alternative in coastal areas. Using reverse osmosis for desalination requires an electricity demand of 3–4 kilowatt hours (kWh) per m3 of water and costs around USD 0.7–2.5 per m3 of water (Tractebel, 2018; Caldera et al., 2018). This has only a minor impact on the total costs of water electrolysis, increasing total hydrogen production costs by USD 0.01–0.02/kgH2. Direct use of seawater in electrolysis currently leads to corrosive damage and to the production of chlorine, but research is looking at how to make it easier to use seawater in electrolysis in the future. Technology options Three main electrolyser technologies exist today: alkaline electrolysis, proton exchange membrane (PEM) electrolysis, and solid oxide electrolysis cells (SOECs). Their main technical and economic characteristics are summarised in Table 3. Alkaline electrolysis is a mature and commercial technology. It has been used since the 1920s, in particular for hydrogen production in the fertiliser and chlorine industries. The operating range of alkaline electrolysers goes from a minimum load of 10% to full design capacity. Several alkaline electrolysers with a capacity of up to 165 megawatts electrical (MWe) were built in the last century in countries with large hydropower resources (Canada, Egypt, India, Norway and Zimbabwe), although almost all of them were decommissioned when natural gas and steam methane reforming for hydrogen production took off in the 1970s. Alkaline electrolysis is characterised by relatively low capital costs compared to other electrolyser technologies due to the avoidance of precious materials. PEM electrolyser systems were first introduced in the 1960s by General Electric to overcome some of the operational drawbacks of alkaline electrolysers. They use pure water as an electrolyte solution, and so avoid the recovery and recycling of the potassium hydroxide electrolyte solution that is necessary with alkaline electrolysers. They are relatively small, 9 For comparison, SMR without CCUS requires around 7 litres of raw water per kgH2 (IEAGHG, 2017b). PAGE | 43 IEA. All rights reserved.PDF Image | The Future of Hydrogen 2019
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