Decomposition of the production cost gap for electrolyser stacks between China and advanced economies, 2025

Notes

LCOP = levelised cost of production; CAPEX = capital expenditure. Based on the LCOP of an alkaline electrolyser, which corresponds to the price that would have to be charged per unit of production to achieve a net present value of zero for a given investment. Assumes a 1 GW/year manufacturing plant and a utilisation factor of 85%. The error bars denote the variation in costs across the advanced economies.