Mid West Clean Energy Project Feasibility Study
Drivers of low-cost Hydrogen - the Bloomberg NEF view*
The key inputs for both blue and green Hydrogen
Blue*
Green*
Pilot
Energy
Natural gas prices
The lower the gas price, the lower the LCOH2 for blue hydrogen. In
Australia, the location of the project can be a key determinant of gas
price.
Power prices
The lower the power costs, the lower the LCOH 2.
Connecting to the grid vs behind the meter.
Technology selection
ATR has slightly lower capital costs when high rates of CO2 capture is
required, and ATR also uses less natural gas. However, ATR uses more
electricity.
CCS costs
CCS costs are driven by electricity and natural gas prices and
accessibility of storage facilities/infrastructure.
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Australia-Korea Business Council Critical Minerals and New Energy Forum | Sydney 30 October 2023
Capacity factors
Higher capacity factors lead to lower LCOH 2.
Projects with both solar and wind can increase overall capacity factor
which increases electrolyser efficiency.
Power prices
The lower the power costs, the lower the LCOH 2.
Connecting to the grid vs behind the meter.
Technology selection - electrolysers
Currently, Chinese alkaline electrolysers are the cheapest on market
but is difficult to procure and has long lead times.
Western alkaline electrolysers are a more costly alternative to Chinese
Electrolysers.
Proton exchange membrane electrolysis is a newer technology and
currently the most expensive.
*Source: Bloomberg New Energy Finance Report 2023 Hydrogen Levilized Cost Update: Cost of
Capital and inflation take hold, July 10, 2023View entire presentation