Nurturing the blossoming hydrogen economy using HBAT: modelling every link in the H2 supply chain

Abstract

An exclusively renewable energy economy is imperative for sustained industrial expansion. Despite notable progress, renewable energy sources fulfilled only 12.6% of global energy demand in 2022. This can be largely attributed to the suboptimal capacity utilisation of most renewable energy generators. Addressing this challenge, hydrogen and liquid organic hydrogen carriers (LOHCs) offer a distinct solution by leveraging economies of scale to substantially lower the levelised costs of delivery beyond current U.S. DOE targets. While several techno-economic assessments have examined specific hydrogen technologies, none have comprehensively evaluated numerous supply chain variations with consistent and comparable assumptions. Showcasing the Hydrogen Business Appraisal Tool (HBAT), we present a techno-economic analysis that evaluates technologies for the entire hydrogen supply chain, incorporating economic, environmental, and societal considerations for 64 unique variations. Notably, our study reveals efficient production capacities for each supply chain combination, suggests optimal reinvestment strategies, and quantifies the economic impact of continued investment in R&D for technology efficiency and longevity. Moreover, our analysis uncovers the environmental hazards associated with various hydrogen storage media, providing critical insights for sustainability decision-making.