Suggested Citation:
Huang, Yongxi, Yueyue Fan, Nils Johnson (2010) Multistage System Planning for Hydrogen Production and Distribution. Networks and Spatial Economics 10 (4), 455 - 472

Hydrogen is an energy carrier that has the potential to improve the sustainability of transportation fuels and reduce oil dependence. This paper presents a stochastic dynamic programming model for sequentially building a hydrogen production and distribution system. The decision variables are the sequence and locations of the central production sites and the corresponding distribution systems from supply to demand sites. A case study based on the geographic setting of Northern California is included, in which the hydrogen is produced via coal gasification and transported from plant to city gates (demand sites) by cryogenic liquid hydrogen trucks. Future demands for hydrogen are modeled as uncertain parameters, with an assumption that hydrogen fuel cell vehicle (HFCV) market penetration rate increases from 1% to 25% over a 20-year period. This model provides multistage decision support for long term transportation energy planning at national and regional levels.

Keywords: Multistage processes; Energy infrastructure system planning; Stochastic dynamic programming; Hydrogen transition