Content presentation of the 4th Boysen-TUD-RTG - Cluster H

Techno-economic modeling of hydrogen value networks

Disciplines involved

Business administration, systems process engineering, combustion engines and propulsion systems

Motivation and goals of Cluster H

The use of green hydrogen plays a central role in achieving the Paris climate goals by 2050. However, for the widespread use of renewable hydrogen, a corresponding infrastructure must be built. A hydrogen value-added network (H2-VAN) requires strategic investments in renewable energy, production technologies, transportation infrastructure and storage. The goal of the cluster is therefore to develop methods for the holistic techno-economic analysis of H2-VAN. A multi-perspective approach is followed, where H2-VAN is investigated from a network, actor, and process perspective as well as from a propulsion technology perspective. The network view designs global H2-VAN to bridge the spatial and temporal disparities between resource availability and green hydrogen deployment. Here, the network's investment and operating costs and sustainability are assessed in terms of greenhouse gas emission reductions achieved, and regional transformation through the establishment of H2-VAN is investigated.
By choosing the actor perspective, the strategic behavior of actors within H2-VAN will be analyzed. This includes answering the question of the extent to which actors can be coordinated to address network-wide goals. The process perspective considers the efficiencies of the different chemical value-added processes as well as the CO₂ footprint, resilience to a volatile supply from renewable sources, and efforts to integrate into a water cycle economy. This perspective allows a systematic investigation of the distribution of green hydrogen and green energy across the different chemical pathways with respect to production-relevant sustainability development goals. From the perspective of propulsion technology, hydrogen produced from renewable sources and the derivatives that can be produced from it represent a way to sustainably ensure mobility without fossil fuels. Mobility applications require high volumetric energy densities, as is the case with the hydrogen derivatives ammonia or methanol. Therefore, it is necessary to develop demand-oriented and systemically reasonable propulsion systems based on hydrogen. A multi-perspective research approach offers the potential to gain new insights into the role of green hydrogen in achieving climate neutrality and enables the derivation of implications regarding technology development for decision-makers from industry and politics.

Scientific added value aimed at in the cluster

• Multi-perspective techno-economic analysis of hydrogen value creation networks from a network, actor and process perspective as well as from a propulsion technology perspective through an integration of mathematical optimization models.
• Joint development of a coherent database.
• Results on the structure of H2-VAN and on the efficient use of green hydrogen as well as recommendations for action for technology development.

The subprojects in detail

Cluster H is composed of 4 subprojects (SP H1 to SP H4).

The aim of SP H1 - Mathematical optimization models for the design and analysis of cross-sectoral hydrogen value networks and regional transformation is the development of cross-sectoral mathematical optimization models to analyze the structure of future H2-VAN considering different scenarios, and to gain valuable insights into beneficial network structures of H2-VAN for decision makers from industry and politics. In particular, the distribution of limited feedstocks for green hydrogen production across the different application areas will be investigated. The main question is for which application areas the limited resources should be used in order to achieve the greatest possible reduction of greenhouse gas emissions.
Based on the results on the structure of future transnational H2-VAN, it is planned to investigate the effects of the long-term establishment of international H2-VAN on the medium-term regional transformation until 2030, using the example of the region of Southern Germany. The Junior Professorship in Business Administration, esp. Human Resources Management of the Faculty of Business and Economics at the TU Dresden (Prof. Tristan Becker) is responsible for the technical supervision.

In SP H2 - Coordination in hydrogen value networks from an actor-centric perspective the aim is to consider the entire value network from the procurement sources, through the production, distribution and use of hydrogen, with the involvement of the actors involved, including the political and legal framework. By selecting the best technologies at each stage of the network, an attempt is made to configure the entire H2-VAN to match hydrogen supply and demand. Within the networks, there are legally independent actors with their own interests, which are not necessarily in line with the design or operation of the network from a holistic perspective. Consequently, the first step is to identify the business models that are attractive to the individual actors and then to analyze how the individual objectives influence the interaction of the actors in the hydrogen network. Game theory is a methodological tool that can be used to analyze the strategic behavior of actors within value networks. The goal of SP H2 is to analyze the challenges for the design of H2-VAN from an actor perspective using game-theoretical methods in order to derive design recommendations for the coordination of the actors.  The Chair of Business Administration, esp. Industrial Management of the Faculty of Business and Economics at the TU Dresden (Prof. Udo Buscher) is responsible for the technical supervision.

SP H3 - Optimization of Hydrogen Value-Added Networks: A Systems Process Engineering Analysis models the industrial material use of green hydrogen as a raw material in the value-added networks of the European process industry. The modeling is based on process engineering relationships such as steady-state material, component and energy balances with operating point-dependent efficiencies and technological boundary conditions. Statistical approaches are used to map the resilience of the chemical processes to the volatility of the green hydrogen and energy supply. In the aforementioned H2-VAN, renewable energy plants, electrolysis plants, water treatment plants, hydrogen storage facilities, hydrogen transport facilities, and hydrogen material recycling plants are considered. In addition, water cycle aspects are considered. In the mathematical optimization problem, utilization pathways and technology variants are represented as integer variables, while constraints capture the capability limits of the technologies. Continuous features such as CO₂ reduction potential, resource consumption, and resilience to hydrogen supply fluctuations enter the objective function. Integer optimization problems arise, allowing the identification of optimal distribution and technology mixes. The aim of the investigations is to elucidate the effects of the distribution of (limited) green hydrogen on different process chains and to derive best practices for the technology mix by means of optimization. Furthermore, findings regarding production-relevant sustainability development goals are to be derived. The Institute of Process Engineering and Environmental Technology, Process Systems Engineering Group of the Faculty of Mechanical Science and Engineering of the TU Dresden within the Process-to-Order Lab, is responsible for the technical supervision of this subproject (Prof. Leon Urbas).

The research of SP H4 - H₂ and H₂-based fuels in internal combustion engine applications focuses on renewable fuels (reFuels). This includes hydrogen, as well as other fuels refined from H₂. These include ammonia and methanol, the latter produced using recycled carbon. In the medium term, the carbon is derived from CO₂ captured directly from the air, thus establishing a closed carbon cycle without additional CO₂ emissions. In the project, several mixture formation and combustion processes are to be investigated which, in particular, could significantly increase the efficiency of existing concepts. A technology-open approach will be pursued since a commitment to a specific mixture formation process (high-, medium- or low-pressure injection, direct or intake-manifold injection) or an ignition method impairs the view of optimal solutions. This subproject is supervised by the Chair of Combustion Engineering and Drive Technology of the "Friedrich List" Faculty of Transport and Traffic Sciences at the TU Dresden (Prof. Frank Atzler).