The merits of hydrogen decentralisation over centralisation

Much work has been done at national and local levels to establish an effective hydrogen supply strategy, with a focus around several ‘basins’ located in major industrial and port areas. These discussions are being fed by developers who are carrying out projects designed to meet the challenge of ‘massification’ of demand.

Some project developers are promoting a centralised model that allows the pooling of production assets associated with hydrogen transport infrastructures to ensure distribution to consumers. The second approach is one of decentralized on-site hydrogen production, as close as possible to the point of use, with a production asset sized according to the needs of the consumer.

These two approaches imply very different investment trajectories, both in production assets and in hydrogen transport and distribution infrastructures. In the context of an emerging market, it is essential to establish a comparative technical and economic analysis between the two models in order to rationalise the development of the sector. Hynamics carried out this work and came to the following conclusions.

 Limited economies of scale in production altering the potential of pooling electrolysis capacity

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