New publication on bi-level optimization of hydrogen supply chains

We are pleased to announce a new publication by Shiyu Guo, Alexander Blume, Maria Beranek, and Udo Buscher in the Journal of Business Economics, titled “Advancing the energy transition in the steel industry: a game-theoretic bilevel approach for green hydrogen supply chains.”

Green hydrogen is considered a key pillar of the energy transition. Especially in the energy-intensive steel industry, it holds great potential to replace fossil fuels and reduce emissions.

In this paper, we use a game-theoretic bilevel optimization model to analyze the interactions between a power plant operator and a steel company. The aim is to identify under which conditions the production and use of green hydrogen are both economically and ecologically beneficial.

A comprehensive case study based on real-world data shows that hydrogen production can serve as a profitable and flexible source of income for the power plant operator while reducing curtailment and spot market losses. The steel manufacturer benefits from lower CO₂ emissions and related costs, as well as the ability to meet the growing demand for low-carbon steel.

Reference:
Guo, S., Blume, A., Beranek, M. et al. Advancing the energy transition in the steel industry: a game-theoretic bilevel approach for green hydrogen supply chains. J Bus Econ (2025). https://doi.org/10.1007/s11573-025-01242-x