The economy of hydrogen production from electrolyzed water is gradually becoming apparent, and the industry welcomes a good opportunity for development
Mainstream hydrogen production methods include fossil fuel hydrogen production, industrial by-product hydrogen, and electrolytic water hydrogen production. According to the calculation, under the electricity price of 0.4 yuan/kWh, the cost of hydrogen production by alkaline electrolysis is about 25.79 yuan/kg, and the cost of electrolysis by PEM is 32.57 yuan/kg. The cost of hydrogen production by alkaline electrolysis is already lower than the price of hydrogen. The cost is similar. The cost of hydrogen production by electrolysis of water is highly sensitive to electricity prices. If the electricity price is lower than 0.2 yuan/kWh, the cost of hydrogen production by electrolysis of water will be lower than the cost of gray hydrogen in most scenarios. If it is lower than 0.1 yuan/kWh, it can be completely parity. In a market-based electricity price environment, zero electricity prices or even negative electricity prices occur from time to time. If the volatility of electricity prices is fully utilized, hydrogen production from electrolyzed water can achieve high returns. At present, the proportion of hydrogen production from electrolyzed water in the world is only about 0.15%. Looking forward to the future, green hydrogen is expected to benefit from the dual logic of the increase in the proportion of hydrogen energy in energy and the increase in the proportion of green hydrogen in hydrogen energy, ushering in rapid growth, and electrolyzed water equipment will be the first to benefit. It is estimated that the global electrolyzed water equipment market will reach 16.7 billion yuan in 2025, and the CAGR will reach 106% from 2022 to 2025. In 2050, the global electrolyzed water equipment market will reach nearly 1.5 trillion yuan.