Local hydrogen demand

Electrolysers earn their revenues primarily from supplying hydrogen to meet various types of demand. One strategy is to co-locate electrolysers with the hydrogen users, to minimise the cost of transport (Figure 9.9). One type of demand is the so-called critical load, which requires a large, continuous, reliable supply of hydrogen. This demand comes, for example, from ammonia production plants and refineries, and from iron and steel industries. Supplying critical load leaves electrolysers with little operational flexibility. Another type of demand are the non-critical loads, which do not require continuous supplies of hydrogen. They are thus much more flexible than critical loads. For example, refuelling stations and some small industries typically have large storage capacities compared with their daily consumption. Supplying non-critical loads allows more flexible operation of electrolysers.

FIGURE 9.9 Co-locating electrolysers with end uses

Co-locating the electrolyser with the end use offers predictable revenue streams for electrolyser facilities, thus reducing investment risks.