New Open-Source Tool Quantifies Uncertainty in Green-Hydrogen Economics
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New Open-Source Tool Quantifies Uncertainty in Green-Hydrogen Economics

10/10/2025 Frontiers Journals

Research Background
Traditional LCC studies deliver single-point cost figures that mask the volatility of emerging technologies. For PEMWE plants, two dominant sources of uncertainty exist:
  1. Capital expenditure (CAPEX) – dominated by scarce raw materials such as iridium and high-performance membranes.
  2. Operational expenditure (OPEX) – driven by long-term electricity prices that fluctuate with geopolitical events, market structure and climate policy.

Research Content
Using a bottom-up, net-present-value framework compliant with ISO 15686-5, the authors integrated Monte-Carlo simulation (via the Monaco package) and the Prophet forecasting algorithm to:
  • Quantify CAPEX cost uncertainty through 350 Sobol-sequence simulations.
  • Forecast German electricity and water prices over a 20-year plant life under two macro-economic scenarios (S1: prolonged crisis impact; S2: rapid return to pre-crisis trends).
  • Generate 95 % probability cost ranges for CAPEX, OPEX, total cost of ownership (TCO) and levelised cost of hydrogen (LCOH) rather than single-point values.
All input data—material prices, BoP costs, recycling rates, labour rates, energy tariffs—were sourced from 2018-2023 market quotations and official statistics.

Key Results
For a 5 MW PEMWE plant in Germany producing app. 17.8 kt H₂ over 20 years:
  1. CAPEX ranges from €2.14 m to €2.58 m (95 % probability).
–Iridium price variability alone contributes ~35 % of CAPEX variance; Nafion membranes add ~25 %; power electronics ≈20 %.
  1. OPEX ranges from €49.2 m to €80.5 m (95 % probability), depending on scenario — energy costs account for >95 % of OPEX variance in both scenarios.
  2. TCO therefore spans €52 m–€82.5 m (95 % probability).
  3. LCOH spans 5.5–11.4 €/kg H₂ (95 % probability, depending on scenario), capturing nearly the entire spread reported in global literature since 2012 (2–20 €/kg H₂).


Research Significance
The open-source tool (available at github.com/LCC-Tool/LCC_Tool_5MW-PEMWE) allows investors, policymakers and plant operators to:
  • Replace opaque point estimates with statistically robust cost envelopes.
  • Test cost-reduction levers such as iridium recycling, membrane reuse or circular-economy leasing models
  • Adapt all parameters (material prices, discount rates, regional energy tariffs) to any geography or technology variant, ensuring global applicability.

By embedding Monte-Carlo simulation and transparent data pipelines, researchers give decision-makers the confidence interval they need for bankable hydrogen projects.
DOI: 10.1007/s11708-025-1033-1
JOURNAL
Frontiers in Energy

DOI
10.1007/s11708-025-1033-1

ARTICLE TITLE
Working with uncertainty in life cycle costing: New approach applied to the case study on proton exchange membrane water electrolysis

Article Link
https://rdcu.be/eFu0G
https://link.springer.com/article/10.1007/s11708-025-1033-1
https://journal.hep.com.cn/fie/EN/10.1007/s11708-025-1033-1
10/10/2025 Frontiers Journals
Regions: Asia, China, Europe, Germany
Keywords: Science, Energy

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