How to finance for establishing hydrogen refueling stations in China? An analysis based on Fuzzy AHP and PROMETHEE

Abstract

Fuel Cell Vehicles are considered as a promising alternative for future sustainable transportation, while the deployment of hydrogen refueling stations is one of the major barriers that blocking the commercial introduction of Fuel Cell Vehicles. Since the establishment of hydrogen infrastructures not only requires quite a large investment, but also needs efficient project management and operation. Therefore, how to finance and operate hydrogen infrastructures is a difficult question for decision makers. In this study, it introduced four business models for financing and operating hydrogen refueling stations: Build-Operate-Transfer, Transfer-Operate-Transfer, Public-Private-Partnership, and Asset- Backed Securitization, and identified six criteria for prioritizing them. Then, it employed Fuzzy Analytic Hierarchy Process to determine the weight for the criteria, and compared the performance of these models with respect each criterion. Finally, the method of Preference Ranking Organization Method for Enrichment Evaluations was used to determine the priority of each model for financing hydrogen refueling stations, and a Sensitivity Analysis was conducted to find the most appropriate model in different situations. The results indicated that financing difficulty, project risks, and financing costs are the most important factors for strategic investors to involve in financing hydrogen refueling stations. Among the four financing models, Public-Private-Partnership and Transfer-Operate-Transfer models are turned out to be more preferable for financing hydrogen infrastructure in China. Some policy implications have also been provided for the establishment of hydrogen refueling stations.