Techno-Economic Analysis of Hydrogen Supply Chains

Hydrogen supply chains encompass the production, conversion, and storage of hydrogen and its Power-to-X (PtX) products, as well as its transportation, distribution, and use on a local and global scale. Efficient, sustainable, and cost-effective hydrogen supply chains are of great importance for a future hydrogen economy and will be an indispensable building block for future defossilized economies. We analyze supply chains that extend from promising locations for the cost-effective production of hydrogen and hydrogen derivatives (e.g. ammonia, methanol, or DME) all the way to the consumer.

The focus of our work is the holistic simulation and optimization of regional and global hydrogen and PtX supply chains from a technological, economic, and ecological perspective. To this end, we rely on a validated methodology that uses maps to show the regional and nationwide potential for renewable energies (RE) and hydrogen, identifies off-take potential for hydrogen and its derivatives, and carries out comprehensive infrastructure analyses. On this basis, we calculate the corresponding generation costs for promising RE locations and large-scale PtX hubs. Taking into account conversion, (intermediate) storage, and transportation, we also determine the corresponding supply costs at the customer’s location. The results of these holistic analyses are supplemented by ecological assessments using prospective life cycle analyses.

We offer:

 

Identification and classification of the generation potential for renewable energies, green hydrogen and its derivatives in selected regions or entire countries

Location-based production and transportation cost analyses of the entire hydrogen and PtX value chain

Infrastructure analyses and identification of suitable locations for large-scale hydrogen and PtX hubs and promising transportation technologies

Time-resolved modeling and dynamic simulation of local to global PtX supply chains with our proprietary “H2ProSim” software

 

Your benefits:

 

You can compare different PtX production sites, transportation methods, and products in terms of costs and sustainability and identify the optimal value chain for you.

The analyses provide comprehensive data sets that support project developers, financiers, insurers, and political decision-makers in their decision-making and can be used for further project developments.

Identification of the Generation Potential

for Renewable Energies, Green Hydrogen, and Hydrogen Derivatives in Selected Regions or Entire Countries

Evaluation of suitable locations for renewable energies
© Fraunhofer ISE
Identification, evaluation, and clustering of suitable locations for RE parks using the example of the Oakajee region in Western Australia, which is to be developed as a promising future location for the production, utilization, and export of green energy sources.

On the basis of a specially developed methodology based on GIS (geo-information systems), we carry out a comprehensive analysis of selected regions or countries in order to identify, classify, and ultimately cluster promising locations for large-scale renewable energy parks and future PtX hubs. In a first step, we take into account numerous suitability criteria, such as solar irradiation, wind speeds, and wind gradient as well as other technical, sociological, and economic factors. In a second step, these are weighted according to location, and their suitability is classified on a finely detailed scale – from 'highly unsuitable' to 'ideal for RE' – and presented in a detailed overview map. In a further step, we derive corresponding RE clusters that indicate promising sites for the construction of large-scale RE parks to supply the targeted PtX hubs with green electricity. Finally, an infrastructure analysis of the region is carried out, taking into account all components relevant to the RE and hydrogen project.

Location-based Analyses of Production and Transportation Cost

for the Entire Hydrogen and PtX Value Chain

Production and transportation costs for PtX products in selected countries in 2030
© Fraunhofer ISE
Calculation of production and transportation costs for the PtX products liquid hydrogen (LH2), ammonia (NH3), methanol (MeOH), Fischer-Tropsch products (FT-Mix), and kerosene (jet fuel) in selected countries in 2030.

To analyze hydrogen production and supply paths, we apply our “H2ProSim” simulation algorithm, which has been developed over many years and validated in numerous projects. We use it to simulate and optimize the generation and transport costs for hydrogen and PtX products at various locations across the world. This is possible for specific locations as well as for entire regions and countries. In doing so, we take into account the conditions and special features of the respective location identified in the analyses (e.g., infrastructure connections, heat integration potential, carbon sources), which provide a central decision-making basis for site selection. We then simulate the hydrogen value chain holistically, from electricity generation, to hydrogen production and conversion, to storage, logistics, and the final offtake. This is done in high temporal and spatial resolution, highlighting technological details such as the dynamics of the individual synthesis paths, the size of intermediate hydrogen storage facilities and batteries, and optimized logistics concepts for transport vessels or trucks.

Research Projects on the Topic Techno-Economic Analysis of Hydrogen Supply Chains

 

TrHyhub

Trilateral Hydrogen Innovation and Export Hub between Western Australia, the Netherlands and Germany

 

TransHyDE System Analysis

TransHyDE Project on Transport Solutions for Green Hydrogen

 

LNG2Hydrogen

TransHyDE Project: Making LNG Terminals Suitable for Hydrogen-based Energy Carriers

 

HYPAT

Global Hydrogen Potential Atlas

 

Power-to-MEDME

Applied research for large-scale production of green hydrogen carriers in Chile

Studies on the Topic Techno-Economic Analysis of Hydrogen Supply Chains

 

Power-to-X Country Analyses

A cost analysis study on behalf of H2Global | Fraunhofer ISE | August 2023

 

Power-to-X Colombia

Study on the production and supply costs of green hydrogen and its derivatives in Colombia | On behalf of the Federation of German Industries (BDI) and the World Energy Council (WEC) | Fraunhofer ISE | September 2024

More Information on this Topic

Research Topic

Electrolysis and Hydrogen Infrastructure

Research Topic

Sustainable Synthesis Products

Business Area

Hydrogen Technologies