A game theory approach in hydrogen supply chain resilience: focus on pricing, sourcing, and transmission security

Abstract This study examines the pricing and assesses resilience methods in hydrogen supply chains by thoroughly analyzing two main disruption scenarios. The model examines a scenario in which a hydrogen production company depends on a Renewable Power plant (RP) for its electricity supply. Ensuring a steady and efficient hydrogen supply chain is crucial, but outages at renewable power sources provide substantial obstacles to sustainability and operational continuity. Therefore, in the event of disruptions at the RP, the company has two options for maintaining resilience: either sourcing electricity from a Fossil fuel Power plant (FP) through a grid network to continue hydrogen production or purchasing hydrogen directly from another company and utilizing third-party transportation for delivery. Using a game theoretic approach, we examine how different methods affect demand satisfaction, cost implications, and environmental sustainability. The study employs sensitivity analysis to evaluate the impact of different disruption probabilities on each scenario. In addition, a unique sensitivity analysis is performed to examine the resilience of transmission security to withstand disruptions. This study evaluates how investments in security measures affect the strength and stability of the supply chain in various scenarios of disruption. Our research suggests that the first scenario offers greater reliability and cost-effectiveness, along with a higher resilience rate compared to the second scenario. Furthermore, the examination of the environmental impact shows that the first scenario has a smaller amount of CO 2 emissions per kg of hydrogen. This study offers important insights for supply chain managers to optimize resilience measures, hence improving reliability, reducing costs, and minimizing environmental effects.