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Complying with low-emission hydrogen standards in long-term integrated supply chains

Vargas-Ferrer, Pedro; Jalil-Vega, Francisca; Pozo, David; Sauma, Enzo; (2025) Complying with low-emission hydrogen standards in long-term integrated supply chains. Energy Policy , 198 , Article 114504. 10.1016/j.enpol.2025.114504.

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Abstract

Renewable hydrogen is a promising alternative to increase the presence of renewable energy in hard-to-decarbonize economic sectors. Renewable-fuel regulation standards have been formalizing to ensure that on-grid electrolytic production is primarily powered by renewable electricity. This work evaluates the mid- and long-term impact of integrating renewable hydrogen supply chains into the expansion and operation of the power system using a tailored modification of the open-source energy modeling system (OSeMOSYS). The model optimizes the joint expansion of the Chilean power system and a hydrogen supply chain for exports, between 2025 and 2060, under the European standard for renewable hydrogen. Results show that incorporating renewable hydrogen supply chains that comply with this standard impacts the infrastructure and operation of the power system during its transition towards decarbonization. Between 2025 and 2040, the off-grid hydrogen production scenario results in distributed production, requiring internal hydrogen transport and low grid reliance. Conversely, a scenario that assumes Power Purchase Agreements for renewable electricity results in centralized hydrogen production, with higher electricity transmission investments and grid reliance. For the scenarios studied, the average systemic cost of hydrogen production ranges from $2.9/kgH2 to $6.4/kgH2.

Type: Article
Title: Complying with low-emission hydrogen standards in long-term integrated supply chains
DOI: 10.1016/j.enpol.2025.114504
Publisher version: https://doi.org/10.1016/j.enpol.2025.114504
Language: English
Additional information: This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions.
Keywords: Power system planning; renewable hydrogen; renewable ammonia; energy planning; OSeMOSYS; flexibility
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL BEAMS
UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment
UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > Bartlett School Env, Energy and Resources
URI: https://discovery.ucl.ac.uk/id/eprint/10205709
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