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Integrating Cross-Border Hydrogen Infrastructure in European Natural Gas Networks: A Comprehensive Optimization Approach

Author

Listed:
  • Schlund, David

    (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))

Abstract
The introduction of clean hydrogen as a future energy commodity has prompted significant interest in developing dedicated transportation and storage infrastructures as an enabler for cross-border hydrogen trade and cost-efficient supply. This paper addresses the complex challenges associated with the development of a European hydrogen infrastructure within the existing natural gas network while maintaining the security of supply for natural gas. Through an extension of an existing dispatch model for European natural gas supply and transportation by endogenous investments in hydrogen production, transportation, and storage infrastructure, a comprehensive analysis of the interplay between natural gas and hydrogen supply becomes accessible. The new model is formulated as a mixed-integer linear program in order to explicitly consider the binary decision of repurposing natural gas pipelines. The results offer insights into the cost-efficient strategic planning of a European hydrogen network by simulating a range of scenarios with varying economic and technical constraints. The case study finds a dominant role of the availability of renewable energy sources in shaping the network. Also, providing flexibility through flexible imports, production, or hydrogen storage becomes an essential element in a future hydrogen supply chain. The interconnection of all European countries with dedicated hydrogen pipelines is robust across all scenarios. However, the sizing and choice of large import pipelines strongly depend on the assumed techno-economic constraints.

Suggested Citation

  • Schlund, David, 2023. "Integrating Cross-Border Hydrogen Infrastructure in European Natural Gas Networks: A Comprehensive Optimization Approach," EWI Working Papers 2023-8, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    • Handle: RePEc:ris:ewikln:2023_008
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    File URL: https://www.ewi.uni-koeln.de/cms/wp-content/uploads/2023/12/EWI_WP_23-08_Integrating_Cross-Border_Hydrogen_Infrastructure_in_European_Natural_Gas_Networks_David_Schlund.pdf
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    More about this item

    Keywords

    hydrogen economics; hydrogen infrastructure; hydrogen storage; hydrogen trade; strategic energy planning; mixed-integer linear program;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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