Publication on the optimization of hydrogen supply chains in the Journal of Business Economics

We are pleased to announce the publication of the article "Advancing the Energy Transition in the Steel Industry: A Game-Theoretic Bilevel Approach for Green Hydrogen Supply Chains" in the Journal of Business Economics. The study was conducted by RTG doctoral student Shiyu Guo(subproject H2) together with Alexander Blume, Dr. Maria Beranek and her scientific supervisor, Boysen-TU Dresden-PI Prof. Udo Buscher.

Green hydrogen is considered one of the most important pillars of the energy transition and plays a crucial role in the decarbonization of energy-intensive sectors such as the steel industry. In their article, the authors develop a game-theoretic optimization model to analyze the strategic interaction between an operator of a renewable energy plant and a steel producer. The model links the producer's decision on the allocation of electricity between direct sales on the market and hydrogen production with the steel company's decision on the use of hydrogen as a reducing agent. The aim is to determine under which conditions the production and use of green hydrogen is both economically viable and environmentally friendly.

A comprehensive case study based on real data shows that hydrogen production can be a profitable and flexible source of income for the power plant operator while reducing renewable energy constraints and losses on the spot market. At the same time, the steel producer benefits from lower CO₂ emissions and compliance costs, as well as increasing market demand for low-carbon steel.

The article is available here: https://doi.org/10.1007/s11573-025-01242-x