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25 August 2023
BY
Tim
Montague
Driving down cost of solar, key to
unlocking a green hydrogen future
Reducing the cost of solar
electricity will be the key to unlocking the next chapter of the
energy transition: a green hydrogen economy, according to Jim Tyler,
CEO of solar technology company Erthos.
Image: Erthos
Global additions of renewable power capacity are expected to jump by a
third this year, according
to the IEA. This is due to a combination of factors including the
Inflation Reduction Act (IRA), the war in Ukraine, and the technology
adoption cost curve. Yet, we’ve only begun to tap solar’s immense
potential. According to Jim Tyler, CEO of solar technology company Erthos,
reducing the cost of solar electricity will be the key to unlocking
the next chapter of the energy transition: a green hydrogen economy.
In a recent interview, Tyler explained how driving down solar’s
levelized cost of energy (LCOE) can accelerate the adoption of solar
for green hydrogen production. While the startling drop in solar panel
prices (from $5/W in 2005 to around $0.25/W today) has fueled the
industry’s growth, ongoing LCOE reductions remain imperative.
“You have to get to below $20 a megawatt hour,” said Tyler of the
solar electricity price needed to produce competitive green hydrogen.
“There are ways to do that. There are ways to get to below $20.” The 2023
LCOE report by Lazard put solar on parity with wind at $24/MWh.
Enter Erthos, founded by Tyler in 2019, which slashes costs through a
novel “solar skin” design that eliminates racking and piles by placing
panels directly on the ground. The technology is being embraced by
developers like Industrial Sun, which announced
a 100 MWac project using Erthos technology in Dec. 2022. This
approach reduces steel usage by 35 tons per megawatt, halves
installation time and real estate needs, and lowers O&M costs. The carbon
footprint of steel manufacture is 1.4-1.65 tons of CO2e/ton of
steel.
The flat to ground solar also reduces mechanical stress and
microcracking on panels, boosting energy yield and project ROI
according to a white
paper by Erthos. What about periodic flooding of the solar array
that flat mounted solar might encounter in the field, you ask? Tyler,
who was VP of EPC for First Solar in a previous life, points to the
intrinsic waterproof design of both solar panels and BOS that can
withstand periodic flooding.
By streamlining the system, Erthos delivers an estimated 20% lower
LCOE compared to single axis tracker based solar construction. While
industry observers initially doubted putting panels on the ground,
Erthos has now contracted over 200 megawatts of its revolutionary
design. “It’s just a matter of time until all module providers
recognize that and ultimately sign up to this technology,” said Tyler,
noting 9 leading module manufacturers have already partnered with
Erthos.
Others are pushing LCOE lower in different ways, like tracker
manufacturer NexTracker introducing systems with fewer parts. But why
does shaving cents off the cost of solar matter so much? Because it
can make the difference in scaling up green hydrogen to displace
fossil fuels.
“I’m a very firm believer that we are not going to electrify our way
out of the [climate] problem,” stressed Tyler. “We have to solve the
problem another way. We have to find a renewable replacement for
fossil fuel.”
That replacement is hydrogen. Clean hydrogen produced by splitting
water with renewable electricity offers a sustainable fuel for
transportation, industry, and more. But historically high production
costs have limited adoption.
“I’m 100% firm believer that hydrogen is that [fossil fuel]
replacement. It’s just too expensive. That’s just the bottom line,”
acknowledged Tyler.
The newly passed Inflation Reduction Act provides crucial support,
including tax credits for clean hydrogen. However, driving down the
single biggest cost component—the solar electricity input—is vital to
make green hydrogen cost competitive at scale.
In fact, Tyler suggests one solution is taking solar off-grid
altogether to avoid the years-long interconnection queues hindering
larger grid-tied solar projects today. Ultra-low-cost off-grid solar
plants dedicated to hydrogen production could accelerate the
technology’s adoption.
“When you disconnect us from the grid [avoiding interconnection costs
and delays], solar will grow even faster for several years,” Tyler
predicted.
While challenges remain, from supply chain constraints to electrolyzer
availability, the industry leaders driving solar innovation are
confident the path is clear. “There are ways to get to below $20,”
reiterated Tyler.
With solar progress unlocking the hydrogen opportunity, Tyler sees a
bright future. “That’s the industry of the future. And when you do
that, solar will grow like you wouldn’t believe.” The race is on to
make cheap renewable hydrogen from cheap renewable electricity a
reality.
When I first spoke to Tyler he provided additional context on Erthos’
disruptive technology and his storied career pioneering utility-scale
solar. He first entered the industry in 2006, working on thin film
solar manufacturing equipment. Seeing early solar farms under
development, he joined OptiSolar in 2007 as they acquired land and
interconnection queue positions to facilitate growth.
After building OptiSolar’s first Canadian project, Tyler moved to
First Solar as VP of EPC. There he helped scale their technology as
crystalline silicon advanced, before co-founding DEPCOM Power in 2014.
DEPCOM grew into a top utility-scale EPC, giving Tyler immense
experience with trackers. But after building over 8 gigawatts, he
contemplated: what if module prices hit zero?
This sparked the idea for flat to ground mount solar. Tyler determined
it made economic sense around 50 cents/W, as modules dropped below 30
cents/W. After verifying solar panels and BOS can survive on the
ground, Tyler founded Erthos in 2019 to pursue this inevitable
disruption.
With 9 tier-one module partners and over 170MW contracted, Erthos is
crossing the chasm into broader adoption. But Tyler explains the shift
hinges on LCOE gains trumping perceived risks, just as trackers
prevailed for their 5% yield boost despite concerns. With 20% lower
LCOE, Erthos should likewise win out.
Still, the transition takes ardent learners willing to embrace
ground-mount solar’s advantages. Tyler compares it to next-gen
trackers circa 2010 – early adopters tested the waters as bankers and
others gradually recognized their value. Now developers like White
Pine Renewables and Industrial Sun prove Erthos’ commercial viability.
Ultimately, Tyler sees electrification as insufficient to meet climate
goals. Low-cost solar-powered hydrogen production holds the key
through its scalable replacement of fossil fuels. He envisions massive
off-grid complexes supplying clean fuel, with Erthos slashing solar
input costs to under $20/MWh. For Tyler, ushering in this new era
through innovation is what drives him.
Green Play Ammonia™, Yielder® NFuel Energy.
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