Optimisation of Possible Transformation Pathways for Hydrogen Valleys: Case Study Southern Upper Rhine Region

This study investigates the optimisation of hydrogen supply chains for a potential hydorgen valley in the Southern Upper Rhine Region through a novel techno-economic framework. Hydrogen valleys, characterized by integrated production, transportation, and consumption systems, are pivotal for advancing a hydrogen economy. This study presents a novelty by combining the optimisation of the hydrogen valley with results from an energy system analysis modelling a defossilisation pathway for Europe. This way, realistic price projections for import and export of electricity and hydrogen within the hydrogen valley can be incorporated and compared to local production. Our findings reveal that the levelized cost of hydrogen in a early development phase with only local hydrogen production in 2025 is approximately 7.89 €/kg, primarily influenced by expensive grid electricity and hydropower. By 2030, with the integration of the hydrogen backbone, levelized cost of hydrogen decreases to 6.8 €/kg, emphasizing the economic viability of hydrogen imports. Furthermore, we identify optimal transport technologies, favoring pipelines for large volumes over short distances. Sensitivity analyses demonstrate that the economic viability of local electrolysis projects highly depends on hydrogen import prices, advocating for strategic investment planning. The research underscores the significance of respecting changing boundary conditions in hydrogen valley development, providing a foundational model for future studies on regional hydrogen economies and their integration into broader energy systems. This work contributes to the understanding of hydrogen supply chain optimisation, highlighting the necessity of holistic planning to achieve efficient resource utilisation and cost-effective hydrogen production.