Tuesday, April 1, 2008 - 2:20 PM

Transitional Hydrogen Supply Chain Infrastructure Modeling

Scott E. Grasman, Zhen Liu, and Kevin B. Martin. Missouri University of Science & Technology

The design of an economically feasible hydrogen infrastructure has been perceived as an insurmountable hurdle that will inhibit the introduction of hydrogen vehicles. The key question is how to achieve feasible supply pathways in order to satisfy hydrogen demand growth economically. Unlike existing literature, this paper advocates models that capture the benefits of phased development, while addressing the questions related to early feasible introduction locations, and how the introduction of hydrogen technologies in these locations affects continued introduction of hydrogen technologies on a local, regional, and national basis. This research illustrates the benefits of utilizing a dynamic stochastic modeling approach as such models are very adapt in managing decision making under uncertainty and over multiple periods. [Louveaux and Peeters, 1992]  Strategic planning and implementation activities related to exploring both near-term and renewable options for hydrogen infrastructure development and deployment suggest that effective national hydrogen infrastructure planning requires cooperative and collaborative efforts at the local and regional levels. Based upon this viewpoint, the incorporation of the interaction among local nodes and the effect of these interactions on future decisions are included within the demand modeling. In particular it is the inclusion of node expanding and network connecting behaviors that provides a more realistic representation of the multiple forces that affect the decision to install hydrogen infrastructure, e.g., a production, storage or fueling facility. In addition, the use of a specific feedstock(s) for hydrogen generation in one region might not be the “best” option in another region. Therefore studies were undertaken to evaluate the combination of generation technologies and distribution methods to determine which systems should be utilized on a local and regional basis in addition to the timing of deployment. Furthermore, the determination of the maximum quantity of hydrogen capable of being produced from solar and wind generated electricity within the U.S. was also completed. The decision of when/where to place a hydrogen infrastructure component is complex and is of key importance during the emerging hydrogen infrastructure growth phase. The modeling efforts discussed within provide a unique approach and insight into understanding the dynamics with which such decisions should be based.