Electrolysers

How Union-origin requirements could affect electrolyser costs

Choose the proposed requirement stage and component package, then follow the estimated cost effect from the stack to equipment, the installed project and the levelised cost of hydrogen.

What the proposal requires Explore the model

Core scenario

Estimated cost increases

Calculated core scenario

Equipment priceEU stack + electrodes + separator

17.2%

Installed project CAPEXEU stack + electrodes + separator

6.9%

Solar-based hydrogenEU stack + electrodes + separator

4.7%

Fixed comparisons for fully EU-produced equipment

Equipment priceFixed · BloombergNEF / Commission

49.9%

Installed project CAPEXFixed · IEA Global Hydrogen Review 2025

27.8%

Solar-based hydrogenIEA scenario; also assumes more efficient EU-produced equipment (62% vs 56%)

14.9%

EU-production cost premium(relative to using Chinese products)

01The technology

What is inside an electrolyser?

The diagram shows an alkaline electrolyser: a stack inside a complete system with supporting equipment. The IAA proposal covers the final system, the stack and additional components. The cost model below uses alkaline electrolysers; the component comparison covers other technologies too.

Final electrolyser

Stack

The electrochemical core, made from repeated cells. The proposal names the stack, separators, plates and electrodes as origin categories.

Supporting equipment

Power conversion, water and gas treatment, cooling and controls sit outside the stack.

Final electrolyser

The integrated equipment has its own Union-origin requirement.

Compare alkaline, PEM, solid oxide and AEM

Quantitative model

Alkaline

Liquid alkaline electrolyte, a diaphragm, electrodes typically using nickel-based materials, and bipolar or end plates.

Additional component categories: separators; bipolar and end plates; electrodes.

PEM

A proton-exchange membrane with catalyst-coated membranes, porous transport layers and bipolar plates.

Additional component categories: membrane electrode assemblies or catalyst-coated membranes; porous transport or gas-diffusion layers; bipolar and end plates.

Solid oxide

A solid ceramic electrolyte with steam and oxygen electrodes, interconnects and high-temperature seals.

Additional component categories: electrolyte and electrodes; high-temperature gaskets or sealings; interconnectors or meshes and end plates.

AEM

An anion-exchange membrane with catalyst layers or electrodes, porous transport layers and bipolar plates.

Additional component categories: membrane electrode assemblies or catalyst-coated membranes; porous transport or gas-diffusion layers; bipolar and end plates.

Official component list · Regulation (EU) 2025/1178

02Origin requirements

What the IAA proposal would require

From 1 year after entry into force

Final electrolyser + stack + one main component

Final system+Stack+1 component

From 3 years after entry into force

Final electrolyser + stack + two main components

Final system+Stack+2 components

For alkaline electrolysers, the additional component categories are separators, bipolar and end plates, and electrodes. The model lets you pick which of these are made in the EU; the stack itself must be Union-origin in every case.

See all electrolyser technologies and component lists

03Explore the model

Adjust the assumptions

The final system and stack are required in both stages. Choose the additional components; the results update automatically.

1. Requirement stage

Year 1 · one additional componentYear 3 · two additional components

2. Additional EU-produced components

Electrodes + separatorBipolar and end plates + separatorElectrodes + bipolar and end platesAll three additional components

How component costs are weighted

Fraunhofer's alkaline-stack cost shares weight the chosen components. The model also includes 22.5% for other stack parts and assembly because the whole stack must be Union-origin. These are cost weights, not legal scores.

Electrodes: 47% of stack cost
Bipolar and end plates: 20%
Separator: 10.5%
Other parts and stack manufacture: 22.5%

Share of stack cost represented by the selected EU-produced package80%

This includes 22.5% for other stack parts, engineering and assembly because the stack itself must be Union-origin. The model assumes the EU premium applies proportionally to this cost share.

Change stack price or project cost share

Cost premium for an EU-produced stack

Price difference between an EU-produced alkaline stack and the imported Chinese reference.

Source

Value50 %

Advanced methods and hydrogen costs

Compare component-weighting methods or calculate hydrogen cost from editable project inputs.

Component cost weighting

Matched EU–China prices are unavailable for each component. Both methods allocate the stack price gap.

Method

Fraunhofer shares distinguish between component packages; the model applies one relative premium across the stack.

Hydrogen-cost calculation

Use the default percentage estimate or an editable USD/kg calculation.

IEA-based percentage (default)Holds electricity use and performance fixed.Editable USD/kg calculationUses project and electricity inputs for solar and offshore wind.

Fixed LCOH assumptions and sources

The red hydrogen bars apply the installed-cost premium to the capital and fixed O&M share of each IEA reference case. The shares below are reconstructed from IEA data; the bars are calculated here, not taken from the IEA.

Solar PV

Electricity: USD 26/MWh
Full-load hours: 2,170/year
CAPEX + OPEX share used: 69%

Offshore wind

Electricity: USD 52/MWh
Full-load hours: 4,500/year
CAPEX + OPEX share used: 36%

Hydropower

Electricity and hours: Not separately published in the annex
CAPEX + OPEX share used: 32.7%

Common reference assumptions: 56% LHV efficiency (about 59.5 kWh/kg) and fixed O&M equal to 3% of CAPEX per year. Electricity, utilisation and efficiency do not change when the sourcing premium changes.

Open assumptions annex

Live results

Core scenario

The model prices EU stack + electrodes + separator against a Chinese stack reference. Other equipment and project costs stay fixed; no separate final-integration premium is added.

Cost through the chain

Stack packagePremium applied to 80% of stack cost

40.0%

Equipment priceStack: 43% of imported-Chinese equipment price

17.2%

Installed project CAPEXEquipment: 40% of installed project cost

6.9%

Levelised cost of hydrogen

Dashed line: 20% auction threshold · see cost thresholds

Solar PV · southern Europe

4.7%

Offshore wind · north-west Europe

2.5%

Hydropower · northern Europe

2.3%

What studies estimate for fully EU-produced equipment and projects

These blue bars reproduce published comparisons of EU-produced and Chinese equipment and project configurations. They are separate reference cases—not outputs of the red component model—and do not change when you adjust the model above.

Equipment and installed-project costs

Fully EU-produced equipmentFixed · BloombergNEF / Commission · USD 718 versus 479 per 0.2 Nm³/h (2023)

49.9%

Project with 100% EU-produced equipmentFixed · IEA Global Hydrogen Review 2025 · USD 2,300 versus 1,800/kW

27.8%

Hydrogen costs in the IEA scenarios

The IEA comparison uses 62% efficiency for EU-produced equipment and 56% for the Chinese-equipment reference. It therefore combines equipment cost and performance rather than isolating sourcing cost.

Solar PV · southern EuropeFixed · IEA scenario with 100% EU-produced equipment

14.9%

Offshore wind · north-west EuropeFixed · IEA scenario with 100% EU-produced equipment

3.1%

Hydropower · northern EuropeFixed · IEA scenario with 100% EU-produced equipment

4.2%

Sources

COM(2026) 100

European Commission — Proposal for an Industrial Accelerator Act

Origin requirements and excessive-cost thresholds for hydrogen auctions and new electrolyser-manufacturing support schemes.

Open source

BloombergNEF / Commission

BloombergNEF 2025 equipment-price comparison, reproduced in the Commission impact assessment

European and imported-Chinese stack and equipment prices; the 50% stack premium and the stack's 43% share of the equipment price.

Open source

Fraunhofer ISE / CATF

Fraunhofer ISE / CATF — Cost Forecast for Low Temperature Electrolysis

Alkaline-stack cost shares used as component weights in the default 'component cost shares' weighting.

Open source

IEA ETP 2026

International Energy Agency — Energy Technology Perspectives 2026

Decomposition of the stack cost gap used in the alternative 'IEA stack-gap allocation' weighting.

Open source

IEA GHR 2025

International Energy Agency — Global Hydrogen Review 2025

The IEA-implied 40–50% equipment-share reference within the model's wider 30–60% sensitivity, project configurations and levelised-cost-of-hydrogen comparisons.

Open source

IEA GHR 2025 assumptions

International Energy Agency — Global Hydrogen Review 2025 assumptions annex

Fixed electricity-price, utilisation, efficiency and operating-cost assumptions behind the IEA reference cases.

Open source

NREL hydrogen finance

National Renewable Energy Laboratory — Capital Structure for Techno-Economic Analysis of Hydrogen Projects

Cost of capital (real WACC) and project life used in the optional detailed calculation.

Open source

DOE Hydrogen Record 24005

U.S. Department of Energy — Clean Hydrogen Production Cost Scenarios with PEM Electrolyzer Technology

Stack-replacement cost, taken from PEM electrolysers as an approximation for alkaline ones, in the optional detailed calculation.

Open source