Ceres targets solid oxide electrolyzers for hydrogen in industrial processes, e-fuels

Up to 95% efficiency from reusing waste heat

Green hydrogen below $1.50/kg by 2025

First 1-MW demo electrolyzer in 2022

 

 

UK solid oxide fuel cell developer Ceres Power plans to move into the electrolyzer space using technology from its fuel cell experience, target hydrogen production in difficult-to-decarbonize sectors such as steel, industrial gas production and e-fuels, it said July 1.

 

Ceres' solid oxide electrolyzers could achieve hydrogen production at below $1.50/kg before 2025, Chief Technology Officer Mark Selby said in an online investor presentation. The target was based on what he called "very conservative" assumptions of $1,000/kW of capex, 80% efficiency and electricity at $20/MWh.

 

The company's first demonstration 1-MW solid oxide electrolyzer cell will be operational in 2022, with a hydrogen production capacity of 600 kg/day, Director of E-fuels Programmes Jon Harman said, with first commercial SOEC stack product release in 2024 and first commercial systems in 2025.

"One of the key things that separates high-temperature electrolysis -- our solid oxide electrolysis technology -- is the ability to recover and incorporate process heat," Selby said.

Producing ammonia or synthetic fuels creates a lot of heat, and "if you can recover that heat back into your hydrogen, you're lowering your primary energy demand," he added. "That's really important. The only way we get to net-0 is both to take carbon out of the system and reduce that consumption."

The renewable hydrogen production space is dominated by two technologies at present: alkaline electrolysis and proton exchange membrane electrolysis. Some small-scale solid oxide applications exist, but the segment is less mature than the leading incumbents.

The high temperatures involved in solid oxide electrolysis have been a barrier to developing the technology, but Ceres said it could achieve efficiency ratings as high as 95% by reusing heat lost in industrial processes.

Lower efficiencies of 74% using water rather than steam were still well in excess of those of PEM and alkaline electrolysis, typically around 55%-65%, Selby said.

He said the Ceres SOEC would bring the inflection point for green hydrogen prices outcompeting grey hydrogen from fossil fuels forward by around at least five years. The wider industry sees hydrogen produced via PEM or alkaline electrolysis competing with grey hydrogen around 2030.

Ceres is well-established in the solid oxide fuel cell business, and has been eying opportunities in the hydrogen production space, building on the same technology. It uses a ceramic and steel unit in its fuel cell stacks, and said the same technology could be applied to the electrolysis process.

Harman said the technology made operating temperatures of 500-600 degrees Celsius viable – much higher than those required for PEM and alkaline electrolysis, but significantly lower than a typical solid oxide application.

The company plans to spend GBP100 million ($138 million) over the next five years in developing its electrolysis technology, which it sees as a major growth opportunity.

S&P Global Platts assessed the cost of producing hydrogen via alkaline electrolysis in the UK (including capex) at GBP5.23/kg ($7.20/kg) June 30. PEM electrolysis production was assessed at GBP6.42/kg, while blue hydrogen production by autothermal reforming was GBP2.12/kg (including capex, CCS and carbon).

 

Ceres targets solid oxide electrolyzers for hydrogen in industrial processes, e-fuels | S&P Global Platts (spglobal.com)