Hydrogen Import Supply Chains

Abstract

Hydrogen produced by electrolysis of water, powered by renewable energy, is seen as the key to enabling the energy transition and creating a new green economy. The result will be a trade market for low-carbon hydrogen where the trade routes will be determined by natural, technical, cost and geopolitical factors. However, to transport or store hydrogen, it must be compressed, liquefied or attached to a carrier due to its low energy density per unit volume. The challenge of this is that the transport of hydrogen is expensive and still at an exploratory stage. More research is needed into the most cost-effective opportunities for the emerging hydrogen transport supply chains. The main objective of this research is to develop a method that provides insight into the effects of hydrogen supply chain configurations on the cost price of hydrogen at the end-use location. The method should provide a better understanding of the influence of different distances and required volumes on the supply chain structure and on the type of hydrogen transport. In addition, by connecting supply chains, it should become clear how the interaction of supply chains affects the cost and throughput. Eventually, it is concluded that if the overseas distance is made variable, DBT will be the most economical option for shorter oversea distances and that for longer oversea distances MCH and ammonia will be the most cost-effective options. This tipping point is around 3500 - 4500 nm (6500 - 8400 km), depending on the volume of the supply chain, the distance to the end user and whether the supply chain configuration is centralized or decentralized. The centralized option will be more cost effective than the decentralized option for all the carriers. It can also be concluded that the cost price of each carrier will approach a some what constant value at large supply chain volumes. From the sensitivity analysis, it can be concluded that the eventual cost price is very sensitive to the WACC and to the price at which the hydrogen is purchased in the export country. In addition, the cost price of LH2 is highly sensitive to the number of storage tanks. All hydrogen carrier options are also relatively sensitive to the energy price.