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Market-driven hydrogen-powered sustainable community planning with green credit incentives

Author

Listed:
  • Lai, Shuying
  • Tao, Yuechuan
  • Dong, Zhao Yang
  • Ruan, Jiaqi
  • Gao, Hongjun
  • Qiu, Jing

Abstract

Green hydrogen, produced through water electrolysis powered by renewable energy, offers a low-emission alternative for decarbonization. To incentivize the global hydrogen economy, this study integrates green credit mechanisms into hydrogen-powered sustainable community planning, where each unit of hydrogen produced corresponds to the issuance of a green credit. Users can earn green credits by consuming green hydrogen, and these credits can be redeemed for energy cost reductions, encouraging hydrogen adoption and stimulating renewable energy consumption, thereby fostering its widespread deployment. First, a carbon accounting and life cycle assessment (LCA) framework is developed to quantify emissions and costs across the hydrogen supply chain, supporting hydrogen credit issuance and pricing. Then, a detailed planning and operation model is formulated for hydrogen production systems, incorporating various electrolyzer configurations and operational modes to improve the accuracy of LCA. Additionally, a market-driven planning model is proposed that integrates electricity and hydrogen trading with green credit transactions, considering users’ carbon response and bounded rationality. According to the case studies, it is verified that integrating market signals and green credit incentives not only enhances renewable energy utilization and hydrogen production efficiency but also substantially reduces carbon emissions and improves economic performance—thereby demonstrating the technical, environmental, and financial viability of a green hydrogen-powered sustainable community.

Suggested Citation

  • Lai, Shuying & Tao, Yuechuan & Dong, Zhao Yang & Ruan, Jiaqi & Gao, Hongjun & Qiu, Jing, 2026. "Market-driven hydrogen-powered sustainable community planning with green credit incentives," Renewable Energy, Elsevier, vol. 269(C).
    • Handle: RePEc:eee:renene:v:269:y:2026:i:c:s0960148126006683
    DOI: 10.1016/j.renene.2026.125842
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