TABLE 4 Sample assumptions for levelized cost of hydrogen calculations Assumption Value Electrolyzer cost $1160/kW Capital Recovery Factor 16% CRF O&M $25/kW-year Capacity factor 50% EfÏciency (HHV) 69% Electricity cost $30/MWh (reflects the production tax credit for renewables) Energy requirement 39.4 kWh/kg H2 (HHV) Water requirement 20 liters per kg H2 FIGURE 12 Hydrogen production cost from electrolysis in 2035 COST COVERED BY 45V TAX CREDIT In comparison, grey hydrogen from steam methane reforming costs around $1.50/kg. Pending treasury rules on additionality (a determination of whether the renewables used to serve this load wouldn’t have existed but for the hydrogen production), hourly match- ing (a determination of whether hydrogen load has to be matched on an hourly basis with a portfolio of zero-carbon electricity production), and deliverability (a determina- tion of whether the zero-carbon electricity production has to be located in the same electricity region as the hydrogen load) will impact project economics, but does not fundamentally impact the attractiveness of clean hydrogen in the long-term. While states within SPP’s service territory are not independently encouraging clean hydrogen production, additional funding from DOE is going towards regional hydrogen SPP FUTURE LOAD SCENARIOS | EVOLVED ENERGY RESEARCH | 19