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Optimal supply chains and power sector benefits of green hydrogen

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  • Fabian Stockl
  • Wolf-Peter Schill
  • Alexander Zerrahn

Abstract

Green hydrogen can help to decarbonize parts of the transportation sector, but its power sector interactions are not well understood. It may contribute to integrating variable renewable energy sources if production is sufficiently flexible in time. Using an open-source co-optimization model of the power sector and four options for supplying hydrogen at German filling stations, we find a trade-off between energy efficiency and temporal flexibility: for lower shares of renewables and hydrogen, more energy-efficient and less flexible small-scale on-site electrolysis is optimal. For higher shares of renewables and/or hydrogen, more flexible but less energy-efficient large-scale hydrogen supply chains gain importance as they allow disentangling hydrogen production from demand via storage. Liquid hydrogen emerges as particularly beneficial, followed by liquid organic hydrogen carriers and gaseous hydrogen. Large-scale hydrogen supply chains can deliver substantial power sector benefits, mainly through reduced renewable surplus generation. Energy modelers and system planners should consider the distinct flexibility characteristics of hydrogen supply chains in more detail when assessing the role of green hydrogen in future energy transition scenarios.

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  • Fabian Stockl & Wolf-Peter Schill & Alexander Zerrahn, 2020. "Optimal supply chains and power sector benefits of green hydrogen," Papers 2005.03464, arXiv.org, revised Jul 2021.
    • Handle: RePEc:arx:papers:2005.03464
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    Cited by:

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    2. Ruhnau, Oliver & Schiele, Johanna, 2022. "Flexible green hydrogen: Economic benefits without increasing emissions," EconStor Preprints 253267, ZBW - Leibniz Information Centre for Economics.
    3. Ruhnau, Oliver & Schiele, Johanna, 2022. "Flexible green hydrogen: Economic benefits without increasing power sector emissions," EconStor Preprints 258999, ZBW - Leibniz Information Centre for Economics.
    4. Schlund, David & Theile, Philipp, 2021. "Simultaneity of green energy and hydrogen production: Analysing the dispatch of a grid-connected electrolyser," EWI Working Papers 2021-10, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    5. Martin Kittel & Wolf-Peter Schill, 2021. "Renewable Energy Targets and Unintended Storage Cycling: Implications for Energy Modeling," Papers 2107.13380, arXiv.org, revised Sep 2021.
    6. Ruhnau, Oliver & Schiele, Johanna, 2023. "Flexible green hydrogen: The effect of relaxing simultaneity requirements on project design, economics, and power sector emissions," Energy Policy, Elsevier, vol. 182(C).
    7. Lee, Jason K. & Schuler, Tobias & Bender, Guido & Sabharwal, Mayank & Peng, Xiong & Weber, Adam Z. & Danilovic, Nemanja, 2023. "Interfacial engineering via laser ablation for high-performing PEM water electrolysis," Applied Energy, Elsevier, vol. 336(C).
    8. Schlund, David & Theile, Philipp, 2022. "Simultaneity of green energy and hydrogen production: Analysing the dispatch of a grid-connected electrolyser," Energy Policy, Elsevier, vol. 166(C).
    9. Heinz Bekebrok & Hendrik Langnickel & Adam Pluta & Marco Zobel & Alexander Dyck, 2022. "Underground Storage of Green Hydrogen—Boundary Conditions for Compressor Systems," Energies, MDPI, vol. 15(16), pages 1-16, August.
    10. Blanco, Herib & Leaver, Jonathan & Dodds, Paul E. & Dickinson, Robert & García-Gusano, Diego & Iribarren, Diego & Lind, Arne & Wang, Changlong & Danebergs, Janis & Baumann, Martin, 2022. "A taxonomy of models for investigating hydrogen energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    11. Carlos Gaete-Morales & Julius Johrens & Florian Heining & Wolf-Peter Schill, 2023. "Power sector effects of alternative options for de-fossilizing heavy-duty vehicles: go electric, and charge smartly," Papers 2303.16629, arXiv.org, revised Apr 2024.
    12. Kirchem, Dana & Schill, Wolf-Peter, 2023. "Power sector effects of green hydrogen production in Germany," Energy Policy, Elsevier, vol. 182(C).
    13. Johannes Brauer & Manuel Villavicencio & Johannes Trüby, 2022. "Green hydrogen – How grey can it be?," RSCAS Working Papers 2022/44, European University Institute.
    14. Abadie, Luis Mª & Chamorro, José M., 2023. "Investment in wind-based hydrogen production under economic and physical uncertainties," Applied Energy, Elsevier, vol. 337(C).

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