From Niche to Mainstream: The Growing Influence of SOECs in the Hydrogen Market

When discussing electrolysers, alkaline and proton exchange membrane (PEM) technologies are commonly mentioned. However, a lesser-known yet promising option is solid-oxide electrolysis cells (SOECs). Operating at high temperatures and utilizing a solid ceramic material as an electrolyte, SOECs offer unique advantages that make them suitable for specific industrial applications.

Specialized Use Cases in Challenging Sectors: SOECs may appear limited due to their higher costs and specialized use cases, making them more expensive to acquire and maintain compared to other technologies. However, they excel in hard-to-abate sectors responsible for a significant share of global carbon emissions. Thus, the demand for SOEC electrolysers extends beyond niche applications.

Growth Potential and Manufacturing Capacity: Interestingly, some of the largest electrolyser factories worldwide are now focused on solid-oxide electrolysis cells rather than alkaline or PEM technologies. These factories have significant production capacities, emphasizing the potential growth of SOECs. This shift reflects the increasing recognition of SOECs' advantages and their suitability for industrial-scale operations.

Enhanced Efficiency through Waste Heat Integration: SOECs excel in heavy industries like steel, ammonia, and chemical production, where waste heat is readily available. By integrating thermal energy into a solid-oxide electrolyser, its electrical efficiency is significantly improved, resulting in lower operating costs. Compared to other electrolysis technologies, a heat-integrated SOEC can produce a cubic meter of hydrogen using considerably less electricity, achieving energy savings ranging from 15% to 25%.

Capital Costs and Operational Expenditure: While SOECs offer impressive efficiency gains, their capital costs are higher compared to alkaline or PEM electrolysers. Maintenance costs are also elevated due to stack replacement requirements. However, despite these challenges, SOECs outperform their counterparts in terms of operational expenditure (opex) due to their lower power consumption. The levelized cost of hydrogen (LCOH), which considers factors such as safety, total plant cost, efficiency, and maintenance costs, should be taken into account when assessing the economic feasibility of SOECs.

Electricity Prices and Configuration Challenges: SOECs are particularly suitable for regions with high electricity prices, where operational efficiency becomes crucial. Industrial applications that can integrate waste heat align well with SOEC technology. However, a challenge lies in securing a reliable power supply, especially for existing industrial operations not originally designed for renewable power. Addressing this configuration issue involves optimizing the placement of the electrolyser downstream where waste heat is generated.

Overcoming Misconceptions and Scaling Up: SOEC technology has often been overlooked in favor of PEM and alkaline electrolysers, mainly due to perceived technical uncertainties and the lack of established industrial manufacturing capacity. However, the scalability of SOEC manufacturers has been underestimated. Significant investments are being made to expand the production capacity and improve cost competitiveness. This indicates the industry's growing confidence in the success of SOECs, and their increasing viability as a long-term solution for challenging sectors.

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