Spatially-explicit optimization of hydrogen supply chains utilizing offshore wind power

Abstract Hydrogen production coupled with renewable energy sources (RES) is a promising solution to utilize otherwise curtailed electricity. Hydrogen is also seen as a potential solution in several hard-to-abate industries, such as the maritime industry. This opens the opportunity for hydrogen supply chains utilizing RES to supply hard-to-abate industries with hydrogen. These hydrogen supply chains utilize either electricity cables or hydrogen pipelines to transport energy. Previous studies show that the most cost-efficient means of transportation depends on both the distance and the amount of energy to be transported. In the context of offshore energy production, the problem is further expanded by the conditions of offshore infrastructure. To capture the effect of offshore conditions in the supply chain design, this paper presents a MILP model that minimizes the cost of a power-to-gas hydrogen supply chain, including the decision of where in the supply chain the electrolyzer should be located. The model is applied to a case in southern Sweden with renewable offshore wind supplying electricity to produce hydrogen as maritime fuel for a ferry. The results show that the relation between offshore and onshore distances, together with increased costs for offshore infrastructure, greatly influence the choice of transmission mode. Hence, this study found that a hybrid solution with offshore electricity transmission to the closest point onshore followed by onshore hydrogen transmission through pipelines to be the least cost option for energy transmission in the hydrogen supply chain.