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Green hydrogen calculator: electrolyzer output and levelized cost (LCOH)

Size an electrolyzer (alkaline, PEM or SOEC) and see how many tonnes of hydrogen it makes, how much water and electricity it uses, and what each kilogram costs, including stack replacements and degradation, with a capacity-factor sensitivity chart.

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Results

10 MW running 4,818 h/yr produces 884 t of hydrogen a year at a levelized cost of 4.52 €/kg (biggest component: Electricity). That is below your 6 €/kg sale price, so the margin is positive.
Hydrogen production
884t/yr
2,422 kg/day average · 183 kg/h at full load
Levelized cost (LCOH)
4.52€/kg
136 €/MWh (LHV)
Electricity used
48.2GWh/yr
54.5 kWh/kg incl. degradation
Efficiency
61.2%
LHV · 72.3% HHV
Water consumption
13,262m³/yr
15 L/kg (stoichiometric 8.9)
Oxygen by-product
7,020t/yr
Stack replacements
1
every 16.6 years (80,000 h)
Total capex
€16,000,000
1,600 €/kW
Project NPV at sale price
€15,247,042
6 €/kg, 7% WACC
CO₂ avoided vs grey H₂
8,841t/yr
≈10 kg CO₂ per kg from unabated SMR
Equivalent uses
7,368 FCEVs
or 5,013 t ammonia · 2,959 m³ diesel-equivalent
LCOH breakdown
LCOH vs capacity factor

Electrolyzer technologies (typical 2023–2025 values)

TechnologySystem kWh/kgEfficiency (LHV)Stack life (h)Installed capex (€/kW)Notes
Alkaline (AEL)50–5561–67%60,000–90,0001,400–2,000mature, cheapest, slower ramping
PEM52–5857–64%50,000–80,0001,700–2,500compact, fast response, uses iridium/platinum
SOEC37–42 + heat75–85%20,000–40,0002,500–4,000+high temperature, best with waste heat/steam
AEM50–5758–66%<30,000early marketno PGMs, small units
  • LCOH = (capex × CRF + PV of stack replacements × CRF + O&M + electricity + water + heat) ÷ kg per year. Taxes, grid fees, storage, transport and subsidies are excluded.
  • Real plants rarely run at a flat capacity factor. On variable renewables, minimum-load limits and ramping cut output, while buffer storage or a grid top-up raises utilisation.
  • Capex ranges are wide and moving fast, and Chinese alkaline systems are quoted far below Western installed costs. Check the latest IEA Global Hydrogen Review figures.

How this green hydrogen calculator works

Green hydrogen is made by splitting water with renewable electricity in an electrolyzer. The physics doesn’t change: every kilogram needs at least 39.4 kWh. The cost does. It hangs on the electrolyzer’s efficiency and price, the hours it runs each year and what the electricity costs. The calculator lays these out side by side:

  1. Production. Electrolyzer power × hours of operation (from the capacity factor of your power supply) ÷ specific energy use gives kilograms per year. Stack degradation pushes energy use up over each stack’s life, so the calculator applies the average.
  2. Resources. Water consumption, oxygen by-product and, for SOEC, steam.
  3. Levelized cost (LCOH). Capital is annualised with the capital recovery factor at your WACC. Stack replacements are discounted to today and annualised too. Fixed O&M, electricity, compression, water and heat are added, and the total is divided by annual production.
  4. Sensitivity. A chart of LCOH against capacity factor at three electricity prices. It shows the trade-off between cheap intermittent power and expensive firm power more clearly than any table.

The formulas

H₂ (kg/yr) = P (MW) × 8,760 × CF × 1,000 / SEC (kWh/kg) Efficiency (LHV) = 33.33 / SEC Efficiency (HHV) = 39.41 / SEC Water = H₂ × L/kg (8.94 stoichiometric) O₂ ≈ 7.94 × H₂ CRF = r(1+r)ⁿ / ((1+r)ⁿ − 1) LCOH = (Capex × CRF + PV(stack replacements) × CRF + O&M + E × price + water + heat) / H₂

Worked example: 10 MW alkaline on a wind–solar PPA

The defaults model a 10 MW alkaline electrolyzer (52 kWh/kg when new) fed by a hybrid solar-plus-wind supply with a 55% capacity factor at €45/MWh:

  • it runs about 4,820 full-load hours, using 48 GWh of electricity;
  • with 0.12%/1,000 h degradation, average consumption over a stack life is about 54.5 kWh/kg (61% LHV efficiency), for about 880 tonnes of hydrogen a year, or 2.4 t per day;
  • it needs about 13,000 m³ of water and releases 7,000 t of oxygen;
  • capex at €1,600/kW is €16 million, with one stack replacement after about 16–17 years;
  • LCOH ≈ €4.5/kg: electricity €2.45, capital €1.55, O&M €0.36, stack replacement €0.12 and water €0.03 per kg.

Sold at €6/kg, the hydrogen gives the project a positive NPV of about €15 million. Switch to the 1 MW PEM on solar preset and LCOH jumps above €10/kg: small scale, higher capex and a 22% capacity factor all push it up. The 2030 target preset (€700/kW, €25/MWh) shows the route to roughly €2/kg that policymakers are aiming for.

How to read the results

  • Hydrogen production: annual tonnes, the daily average and hourly output at full load.
  • LCOH: compare it with grey hydrogen (about 1–3 per kg), subsidy auction prices or the value of the fuel you replace. The per-MWh (LHV) figure lets you set it against natural gas.
  • LCOH breakdown: if electricity dominates, work on efficiency and power price. If capital dominates, raise utilisation.
  • Sensitivity chart: each curve falls steeply at low capacity factors and flattens above 50–60%. The best point balances cheaper intermittent electricity against capital sitting idle.

Typical values

Technology System energy use Efficiency (LHV) Stack life Installed capex (2023–24)
Alkaline (AEL) 50–55 kWh/kg 61–67% 60,000–90,000 h 1,400–2,000 per kW
PEM 52–58 kWh/kg 57–64% 50,000–80,000 h 1,700–2,500 per kW
SOEC 37–42 kWh/kg + heat ~75–85% incl. heat 20,000–40,000 h 2,500–4,000+ per kW
AEM 50–57 kWh/kg 58–66% < 30,000 h early market

Useful conversions: 1 kg H₂ = 33.3 kWh (LHV) = 39.4 kWh (HHV) ≈ 11.1 Nm³; a fuel-cell car uses about 0.8–1 kg per 100 km; one tonne of hydrogen makes about 5.7 t of ammonia.

Tips to lower LCOH

  • Raise utilisation. Combining wind and solar, or adding a small grid top-up, often lowers LCOH even at a higher average power price.
  • Oversize the renewables relative to the electrolyzer so it spends more hours at full load.
  • Sell the by-products. Oxygen or recovered low-temperature heat can trim costs by several percent.
  • Watch stack life and degradation. A longer-lived stack can save you an expensive mid-life replacement.
  • Count compression and storage. Delivery at 350–700 bar or as a liquid adds 2–12 kWh/kg (enter it in the compression field), plus the cost of storage.
  • Model the power supply itself with the wind farm calculator or solar panel calculator.

Limitations

The model assumes a flat capacity factor and a constant electricity price. Real renewable supply fluctuates, and minimum-load limits, ramping, hydrogen storage and offtake constraints all cut effective utilisation. Taxes, grid fees, land, financing structure, transport and subsidies are excluded. Capex figures move fast and differ a lot between suppliers and regions, so check recent sources such as the IEA Global Hydrogen Review before you rely on any single number.

Method & assumptions

Hydrogen (kg/yr) = MW × 8,760 × CF × 1,000 ÷ specific energy use (kWh/kg). The specific use rises with stack degradation (%/1,000 h) and resets at each replacement, so the average over a stack life is applied. Efficiency (LHV) = 33.33 ÷ kWh/kg. Water = kg × L/kg; oxygen ≈ 7.94 kg per kg H₂. LCOH = annualised capex (CRF at your WACC) + annualised present value of stack replacements + fixed O&M + electricity + compression + water (+ steam for SOEC), divided by annual kg.

Frequently asked questions

How much electricity does it take to make 1 kg of hydrogen?
Today's electrolyzer systems use about 50–55 kWh per kg (alkaline), 52–58 kWh/kg (PEM) or around 40 kWh/kg of electricity plus heat (solid oxide). The theoretical minimum, set by hydrogen's higher heating value, is 39.4 kWh/kg.
How much water is needed to produce hydrogen?
The chemistry needs 8.9 litres of water per kg of hydrogen. Real plants use about 10–15 L/kg once purification losses are included, and 20–30 L/kg or more with evaporative cooling. Even then, water usually costs only a few cents per kg.
What is the cost of green hydrogen?
Most current projects produce green hydrogen at roughly 4–8 per kg (EUR or USD), compared with about 1–3 per kg for grey hydrogen from natural gas without a carbon price. The two biggest drivers are the electricity price and how many hours the electrolyzer runs (its capacity factor).
How much hydrogen does a 1 MW electrolyzer produce?
About 18–20 kg per hour at full load, or roughly 440–480 kg per day running continuously. At a 50% capacity factor that is around 80–85 tonnes a year.
What is LCOH?
LCOH is the levelized cost of hydrogen: the plant's total lifetime cost (capital, stack replacements, operation, electricity, water) divided by the hydrogen it produces, per kilogram. Think of it as the hydrogen version of LCOE.
Which is better, PEM or alkaline electrolysis?
Alkaline electrolyzers are cheaper, mature, long-lived and a little more efficient at steady load. PEM units are more compact, follow fluctuating renewable power faster and deliver hydrogen at higher pressure, but they depend on platinum-group metals. Where cheap high-temperature heat is on hand, SOEC is the most efficient of the three.
Why does capacity factor matter so much?
Because the electrolyzer is expensive. Run it only when the sun shines (20–25% of the year) and its capital cost is spread over few kilograms, so LCOH can be twice that of a plant running 50–60% of the time on combined wind and solar.

Sources & references

  1. IEA — Global Hydrogen Review 2024
  2. IRENA (2020). Green Hydrogen Cost Reduction: Scaling up Electrolysers to Meet the 1.5 °C Climate Goal
  3. Clean Hydrogen Partnership — Strategic Research and Innovation Agenda (electrolyser KPIs)
  4. US DOE Hydrogen and Fuel Cell Technologies Office — Hydrogen production via electrolysis

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