H2SEA: Holistically optimized design reduces offshore hydrogen production costs

May 15, 2025, by Ajsa Habibic

Dutch green hydrogen company H2SEA, in collaboration with Bosch Thin Metal Technologies and TNO, has completed a study aimed at optimizing the design of offshore hydrogen production systems to reduce costs.

H2SEA and its partners conducted the IPOSH (Innovative Process Design for Offshore Hydrogen) project, which proved successful in reducing the levelized cost of hydrogen (LCOH) by 10-20% through optimization of the design of offshore hydrogen production systems, the company reported.

The project was completed with the support of the Dutch TKI Offshore Energy Program, a part of Energy Innovation NL.

When it comes to hydrogen production systems, traditionally, electrolyser stacks are designed first, with the balance of stack (BoS) and balance of plant (BoP) components selected afterward to accommodate the stacks.

However, the IPOSH project focused on an integrated approach, considering all components equally important from the outset, H2SEA explained, adding that this ensured that cost savings were realised through simultaneous optimisation rather than retrofitting elements to pre-designed stacks.

By designing the overall system, the project aimed to achieve a higher level of efficiency and cost-effectiveness.

As understood, the IPOSH project evaluated aspects such as plant design, transport, installation, maintenance, operation, and decommissioning, and through a model-based analysis, assessed stack replacement rates under different operational scenarios and module sizes to enhance efficiency and longevity.

A holistically optimized electrolyzer system, rather than constrained by existing design limitations, was found to enable the identification of the most cost-effective and scalable configurations for future offshore hydrogen production.

Overall, the goal was to establish general requirements for offshore electrolysis, addressing factors such as system footprint, maintenance needs, and environmental impact.

“By leveraging the combined expertise of H2sea, TNO, and Bosch, the findings of the IPOSH project will provide valuable guidance for future developments, strengthening the role of offshore hydrogen in achieving a sustainable, low-carbon energy system,” H2SEA concluded.