A Newly Developed Spatially Resolved Modelling Framework for Hydrogen Valleys: Methodology and Functionality

Regional initiatives, like the European hydrogen valleys, aim to solve the simultaneous absence of green hydrogen production, infrastructure, and application with coordinated development of the whole supply chain. A new model framework was developed to bridge the gap between linearised energy system models and detailed plant simulations that allows for dynamic, nonlinear simulation and optimisation of regional hydrogen systems from electricity generation to hydrogen application. The model incorporates different supply algorithms for electricity and hydrogen, representing both bilateral contracts and flexible markets. A case study demonstrates the application of the framework within a representative hydrogen valley in Germany, showing how the model can identify optimal configurations of hydrogen production, storage, and distribution infrastructure to minimise the levelized cost of hydrogen. The influence of different spatial resolutions, exchange control algorithms, and boundary conditions chain are evaluated. A too coarse spatial resolution can underestimate system cost by up to 10% while the allowance of both bilateral hydrogen contracts and a flexible market algorithm can increase hydrogen utilisation and reduce cost by up to 15%. An autarkic supply of hydrogen demands was possible for 7.60 €/kg, while the option to use grid electricity reduces costs to 6.37 €/kg and the option to import hydrogen to 6.60 €/kg, based on the assumptions for electricity and hydrogen prices. This work contributes to the evolving field of hydrogen economy by providing a sophisticated tool for policymakers and industry stakeholders worldwide to plan and optimise regional hydrogen valleys effectively.