| THERMAL ENGINEERING |
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Decisions of a byproduct hydrogen supply chain for a business model of large-scale hydrogen storage |
| CAO Qianni1, JIA Mengshuo2, LI Boda1, SHEN Chen1, XUE Xiaodai1 |
1. Department of Electrical Engineering, Tsinghua University, Beijing 100084, China;
2. Power System Lab, ETH Zurich, Zurich 8092, Swiss |
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Abstract [Objective] In the context of carbon peak and carbon neutralization, hydrogen utilization becomes a promising measure to solve the energy shortage and reduce total greenhouse gas emissions. Commonly produced during many industrial processes, byproduct hydrogen acts as a hydrogen source that is widely available, cheaply produced, and sufficiently clean, thereby having a large potential market. However, the lack of large-scale storage, corresponding logistics supply chains, and untapped markets hinder the further use of byproduct hydrogen.[Methods] Given the low cost of byproduct hydrogen and the need for large-scale hydrogen storage, this paper proposes a business model in which salt caverns purchase byproduct hydrogen from chemical plants. The decision-making process of chemical plants and salt caverns is modeled and studied as a mixed-integer nonlinear optimization problem. During the planning stage, the proposed model optimizes transportation routes, modes, and hydrogen processing capacity, and during the operation, it optimizes hydrogen processing volume based on electricity price fluctuations to improve the profit of the upstream supply chain. The constraints of the optimization problem in the proposed model include the dynamic process of hydrogen transportation between salt caverns and chemical plants, the fluctuation in market demand with changes in hydrogen pricing, and the state of charge of salt caverns. The objective is to maximize the benefits of salt caverns and chemical plants. Given the characteristics of the optimization problem, this paper combines genetic algorithms and a commercial solver of linear programming to obtain the optimal solution. Finally, an envisioned case is used to study the economic benefits brought about by the optimization of supply chain decision-making and sensitivity analysis.[Results] (1) Different scenarios in the supply chain for hydrogen transportation achieved a net income with room for profit, making the proposed business model viable. (2) The optimization model proposed in this article optimized transportation routes, transportation modes, and hydrogen processing unit capacity during the planning phase. During the operational phase, it optimized the hydrogen processing volume based on electricity price fluctuations, thereby increasing the upstream supply chain benefits of byproduct hydrogen. (3) Sensitivity analysis showed the benefits of joint transportation under changing costs, and there existed an optimal pipeline capacity for a given market demand, beyond which increasing pipeline capacity would not further increase profit. (4) Varying the production scale of hydrogen by chemical plants, transportation distance, and cost showed that small and medium-scale chemical plants were more likely to engage in joint transportation, while large-scale chemical plants tended to transport independently. Increasing transport costs encouraged joint transportation to reduce costs. (5) Modifying the linear demand function parameters for the market showed that increasing demand and reducing price sensitivity increased the profit of the upstream supply chain. Improving hydrogen transportation technology to lower costs also increased profit.[Conclusions] The business model proposed in this paper provides a new source of income for chemical plants and salt caverns, improves resource utilization by reducing industrial exhaust emissions, realizes the rational use of natural resources, and provides a new way to accelerate the energy transition.
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| Keywords
byproduct hydrogen
salt cavern
business model
supply chain
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Issue Date: 06 November 2023
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2023,
Vol. 63
