How government policies promote transportation utilization in the national-level hydrogen supply chain: A case of China

Abstract

Pipeline transportation is a low-cost option for delivering large volumes of hydrogen (H2), however, the high initial capital cost remains a major impediment to expanding pipeline delivery infrastructure. To quantitatively evaluate the impact of the H2 pipeline on the hydrogen supply chain (HSC), this paper develops an evaluation system for the development potential of the H2 pipeline and simulation models for H2 resource allocation. Furthermore, the HSC system in the southwest of China is used to validate the proposed method. The results demonstrate that the levelized cost range of a given 150–550 km H2 pipeline is 2.76–10.12 CNY/kg, which has price advantages over other transportation modes. Compared with the hydrogen supply chain resource allocation (HSCR) model, putting the H2 pipeline into use can optimize the layout and utilization of different transportation modes. It shows that the proportion of H2 transportation volume distribution in H2 pipelines has increased from 0 % to 73.44 %, while the proportion of HLT has first increased from 18.86 % to 54.27 %, and then decreased to 17.95 %. And then under different policy scenarios, the consideration of pipeline reduces the sensitivity of the H2 blending ratio of natural gas (NG) and NG demand to HSC. The impacts of policies on regional H2 development and regional policy implications are revealed. This approach provides a tool for policymakers to quantify the impacts of policy.