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A robust design of hydrogen supply chain with integrated sustainable pricing policy under government intervention: Circular economy-driven management

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  • Aghajani, Danyal
  • Gilani, Hani
  • Sahebi, Hadi
  • Vilko, Jyri

Abstract

In the quest for sustainable energy solutions, hydrogen stands out as a pioneering alternative fuel with the potential to revolutionize energy supply chains. Despite its environmental advantages, high costs and incomplete exploitation of hydrogen production hinder widespread adoption. This study proposes a novel supply chain framework for bio-hydrogen production from municipal solid waste (MSW) and dairy residues, integrating waste centers, bio-refineries, carbon capture and storage, and refueling infrastructure. A combined Stackelberg-Cournot approach is introduced, where hydrogen and petroleum producers partake in Cournot competition under government incentives for green production, technology promotion, and job creation, guided by a Stackelberg leader. The resulting hydrogen price, derived from the model, is incorporated into a mixed-integer multi-objective linear programming model with a possibilistic perspective to address uncertainties. Implemented in a Finnish case study, the model yields Pareto optimal solutions and sensitivity analyses, ensuring reliability and robustness. The Stackelberg-Cournot pricing policy sets hydrogen at €5.3–€11.16, informed by 12 crucial parameters. Meeting demand without shortages requires boosting refueling centers by 40 %, while other facilities work at full capacity. Although the deterministic model delivers roughly triple the profit of its robust counterpart, the latter exhibits more resilience against uncertainties.

Suggested Citation

  • Aghajani, Danyal & Gilani, Hani & Sahebi, Hadi & Vilko, Jyri, 2025. "A robust design of hydrogen supply chain with integrated sustainable pricing policy under government intervention: Circular economy-driven management," Energy, Elsevier, vol. 334(C).
    • Handle: RePEc:eee:energy:v:334:y:2025:i:c:s036054422503302x
    DOI: 10.1016/j.energy.2025.137660
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    References listed on IDEAS

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    1. Rouzbahani, Fatemeh & Vaziri Rad, Mohammad Amin & Aghajani, Danyal, 2026. "Mapping cost-effective hydrogen production based on renewable resource potential and techno-economic analysis: a case study," Applied Energy, Elsevier, vol. 404(C).
    2. Dou, Zhenlan & Zhang, Chunyan & Gao, Fengkai, 2026. "Toward low-carbon shipping: Techno-economic optimization of an integrated marine biofuel–hydrogen system using supercritical rapeseed biorefinery," Energy, Elsevier, vol. 342(C).
    3. Vaziri Rad, Mohammad Amin & Forootan Fard, Habib & Tajedini, Somayeh & Aghajani, Danyal, 2025. "Integrating multi-criteria decision making and game theory approaches to identify sustainable power supply solutions grounded in economic optimization: A case study in the abundant climates of Iran," Energy, Elsevier, vol. 338(C).

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