The Tobe Advantage: Electrolyzer Economics

This whitepaper presents a comprehensive comparison of electrolyzer technologies for green hydrogen production. Our analysis demonstrates that Tobe Energy's isothermal electrolysis system delivers the lowest levelized cost of hydrogen (LCOH) across all electricity price scenarios.

• •Key findings:
• •Lowest LCOH at any electricity price: $1.99/kg H₂ at $0.04/kWh—40% below alkaline, 51% below PEM
• •Efficiency that compounds: 42.23 kWh/kg (94.7% electrical efficiency)
• •CAPEX advantage persists at scale: Prototype $446/kW, projected ~$177/kW at MW volumes
• •Stack replacement costs 80% lower: ~10% of CAPEX vs. 35-50% for conventional systems
• •No PGM supply chain risk: Zero platinum-group metals

The electrolyzer is the economic engine of any green hydrogen project. Its capital cost, efficiency, and lifetime determine whether a project achieves sub-$2/kg hydrogen or struggles above $5/kg.

• •The LCOH equation:
• •Electricity accounts for 60-80% of LCOH—making system efficiency the dominant lever
• •CAPEX contribution increases at low capacity factors or high electricity prices
• •Stack replacement costs can add 15-30% to lifetime operating expenses

Every kWh/kg improvement saves money on every kilogram produced, every hour, for the project's 20-year life.

Five electrolysis technologies compete for green hydrogen projects today:

Alkaline (AEL): Most mature (TRL 9), GW-scale proven. Weaknesses: moderate efficiency (60-65%), slow response, caustic handling.

PEM: Fast response, compact. Weaknesses: high CAPEX ($1,100-1,300/kW), PGM dependency (iridium, platinum).

SOEC: Highest efficiency with waste heat (70-80%). Weaknesses: very high CAPEX ($4,000+/kW), hours-long startup.

AEM: No PGMs, potentially lower cost. Weaknesses: very short stack life (~7,000 hrs), unproven durability.

Tobe Isothermal: 94.7% efficiency, $446/kW CAPEX, 304 SS construction, 10-100% turndown.

Model assumptions: 8% WACC, 20-year project life, 90% capacity factor, 2-4% annual maintenance.

• •LCOH at $0.04/kWh (industrial/PPA rate):
• •Tobe Prototype: $1.99/kg — 40% below alkaline ($3.33/kg), 51% below PEM ($4.05/kg)

• •LCOH at $0.06/kWh (grid rate):
• •Tobe Prototype: $2.84/kg — 37% below alkaline ($4.52/kg), 46% below PEM ($5.28/kg)

At low electricity prices, CAPEX and stack replacement become larger shares of LCOH. Tobe's advantages in both metrics compound: at $0.02/kWh, Tobe achieves $1.15/kg—46% below alkaline.

20-year TCO for a 1 MW system at $0.04/kWh:

• •Tobe (Prototype): $6.98M total
• •CAPEX: $446K | Electricity: $6,307K | Maintenance: $178K | Replacement: $45K

• •PEM: $9.43M total
• •CAPEX: $1,200K | Electricity: $6,307K | Maintenance: $720K | Replacement: $1,200K

Key insight: Stack replacement is the hidden killer. AEM requires $8.4M in replacements over 20 years; SOEC requires $10.4M. Tobe's 10% replacement cost ($45K vs. $1.2M for PEM) is possible because the stack uses 304 SS with no consumable membranes, catalysts, or ceramics.

Tobe's instant startup and wide turndown range (10-100%) make it ideal for direct coupling with solar and wind:

• •No warm-up energy wasted during cloud transients or wind lulls
• •No thermal cycling stress from variable operation
• •Capacitive load behavior provides smoother power draw, reducing grid stress
• •Resonant LLC power electronics enable participation in demand response programs

SOEC limitation: Requires stable, high-temperature operation—cold starts take hours and cause ceramic thermal stress.

The Iridium Problem: PEM electrolyzers require 0.67-2.0 grams of iridium per kilowatt. Global production is 7-8 tonnes/year, 80-85% from South Africa. Scaling to 100 GW PEM would require 100+ tonnes—over 12 years of current production.

• •Scalability Risk Comparison:
• •Tobe: 304 SS — No constraint, Low risk
• •Alkaline: Nickel, diaphragms — Moderate constraint
• •PEM: Iridium, platinum — Severe constraint, High risk
• •SOEC: Specialty ceramics — Moderate constraint

304 stainless steel is produced at >50 million tonnes/year globally. Tobe's design eliminates supply chain constraints.

Choose Tobe when: LCOH optimization is primary, supply chain resilience matters, pairing with variable renewables, 2027+ project timeline.

Choose Alkaline when: GW-scale bank-financed deployment today, TRL 9 requirement non-negotiable, baseload operation with stable power.

Choose PEM when: Space is extremely constrained, sub-second grid response required, higher LCOH acceptable for proven flexibility.

Choose SOEC when: Abundant high-grade waste heat (>600°C), guaranteed baseload operation, industrial co-location.

Honest assessment of Tobe's current limitations: TRL 6-7 (prototype proven, MW-scale in development), not yet deployed at commercial scale, may require technology risk premium from conservative lenders.