Green Hydrogen Supply Chains Design in Portugal: Economic Efficiency vs Water Sustainability

This study designs a green hydrogen supply chain for Portugal, focusing on minimizing both economic costs and water stress. The research uses a multi-objective simulated annealing algorithm to address the trade-offs between the two objectives. The process of producing hydrogen via electrolysis is highly water-intensive, posing a challenge in water-scarce regions like southern Portugal. The study considers Portugal's uneven water distribution, renewable energy availability and, different hydrological conditions across districts. An aggregate indicator, Water Stress Index (TWSI), quantify the pressure on water resources covering all the Portugal�s districts in a single score. This study explores four scenarios, a baseline scenario, a green hydrogen scenario using only renewable energy, drought conditions, and increased demand in major cities with drought conditions. The quasi pareto front illustrates the trade-offs between supply chain cost and TWSI, enabling decision-makers to select solutions tailored to local priorities. The findings highlight the importance of adaptable and robustness infrastructure to overcome both environmental and demand challenges.