LH2 supply infrastructure for H2-powered aviation: Business models, financing strategies and policy instruments

Hydrogen-powered aviation offers a promising pathway for decarbonising the aviation sector, yet the development of liquid hydrogen supply infrastructure remains a significant challenge. This study systematically investigates how different stakeholder constellations, financing strategies, and policy support mechanisms influence the cost and deployment of the supply infrastructure for aviation. Using a dynamic cash-flow framework linked to a multi-period optimisation model, three archetypical stakeholder constellations are compared regarding their impacts on infrastructure design and resulting hydrogen prices at a generic airport. Results show that stakeholders’ financial criteria, particularly their weighted average cost of capital, have a decisive influence on hydrogen supply prices, with lower cost of capital resulting in significantly reduced prices. Long-term supply price across the analysed stakeholder constellations ranges from 4.86–5.36 USD/kgH 2 , while early-stage prices are roughly twice as high. The study further evaluates five categories of policy support mechanisms: direct financial support, loan-based instruments, market-based instruments, tax incentives, and regulatory measures. Direct funding and market-based schemes effectively reduce early supply prices, whereas loan-based support and tax incentives provide longer-term cost relief with lower public expenditure. A combined policy approach, complemented by regulatory measures, is recommended to support early deployment, foster stable market conditions, and stimulate hydrogen demand in aviation. • Financing options of liquid hydrogen supply infrastructure for aviation • Analysis of different stakeholder constellation for a liquid hydrogen supply chain • Influence of policy support mechanism on the liquid hydrogen supply price