Techno-Economic and Environmental Analysis of Hydrogen Supply Chains
Abstract
Techno-economic analysis of hydrogen supply chains frequently yields incomparable results, hindering reliable investment decisions. This is largely due to inconsistent scope definitions, inadequate testing of critical assumptions, and the exclusion of Carbon Intensity (CI) evaluations. This paper presents a robust methodology to address these challenges, ensuring that evaluations are comprehensive, transparent, and comparable. Our framework integrates a complete life-cycle evaluation with time-series-based operational modeling to accurately determine both the Levelized Cost of Hydrogen (LCOH) and its associated CI. To test the model’s robustness, we employ global sensitivity analysis to identify and quantify the impact of key input parameters. We demonstrate this methodology by applying it to a specific case study: an offshore wind-powered hydrogen production facility supplying the Netherlands via a repurposed subsea pipeline. This application reveals how critical assumptions, from embodied emissions and capital cost of the electrolyzer and windfarm to the carbon intensity of backup grid power, materially affect the project’s economic and environmental viability. The result is a clear, replicable blueprint for conducting hydrogen supply chain evaluations that provides the realistic and robust insights necessary to guide strategic investment in the energy transition.