Work

Modelling a small-scale hydrogen valley: Optimisation under techno-economic and environmental perspectives

Year: 2025

Type: article

Abstract: Renewable hydrogen is a promising pathway to decarbonise hard-to-electrify sectors, though its widespread deployment remains hindered by economic challenges. Hydrogen valleys, integrated regional systems, have emerged as a strategic solution to scale up hydrogen infrastructure and demand. This study assesses the techno-economic feasibility of a hydrogen valley in Southeastern Crete, based on the CRAVE-H₂ project, using a Mixed-Integer Linear Programming (MILP) optimisation model.The system serves multiple end-uses: touristic fuel cell buses and a vessel, as well as cold ironing for ships at berth. During renewable shortages, electricity is supplied via a hybrid storage system or purchased from the grid, with dispatch optimised according to hourly market prices.A customised modelling framework is developed within PyPSA using the Linopy extension, enabling the inclusion of piecewise affine approximations of non-linear performance curves for electrolysers and fuel cells, alongside operating range constraints. Hydrogen leakage is also explicitly modelled to assess its environmental and economic implications.The model delivers optimal component sizing, energy dispatch strategies, and key performance metrics, including LCOH, aggregated LCOE, and carbon intensity. Most scenarios yield competitive LCOH values between 5.36 and 8.21 €/kgH₂, increasing to 15 €/kgH₂ under full decarbonisation due to extensive storage investments.Hydrogen emissions, that may exceed 10% of total production in worst-case scenarios, become more pronounced in fully decarbonised scenarios. These findings underline the importance of emissions tracking and provide practical insights to inform the design of cost-effective, low-emission hydrogen valleys.

Source: International Journal of Hydrogen Energy

DOI: 10.1016/j.ijhydene.2025.152172

Authors: Vincenzo Romano, Paolo Marocco, Marta Gandiglio, Massimo Santarelli

Institution: Politecnico di Torino

Language: English

Topic: Hybrid Renewable Energy Systems

Subfield: Energy Engineering and Power Technology

Field: Energy

Domain: Physical Sciences

SDGs: Affordable and clean energy, Industry, innovation and infrastructure, Climate action, Sustainable cities and communities

Open Access status: hybrid

Estimated APC paid: $3,730