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Energy Business Review | Thursday, January 05, 2023
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The Hydrogen Supply Chain has likely emerged as an efficient planning matrix and agenda for future resources over renewable resources, favouring a sustainability-driven global approach meticulously.
FREMONT, CA:Energy systems all across the world are undergoing a transition toward induced sustainability, where hydrogen (H2) has likely gained momentum in recent times. That is, the Hydrogen Roadmap Europe has most likely stated that H2 will play an induced role in future energy systems due to its ability to boost global sustainability goals. Therefore, hydrogen is anticipated to account for nearly 13 per cent of the total energy mix in the coming years.
However, in order to ensure a sustainable transition, a potential hydrogen supply chain (HSC) is required to address various conditions such as hydrogen production via water electrolysis, which in practice includes electricity and renewable sources. Wherein, the operational characteristics of the renewable HSC may often intervene in the planning, owing to the diverse nature of renewable hydrogen. For example, hydrogen is produced on a decentralised basis using renewables such as wind and solar energy, and frequently via electricity generated from a larger hydropower plant.
Alongside this, the demand for hydrogen is soaring and diversifying per the new applications in practice, like fuels for cell electric vehicles and electricity generation, feedstocks in industrial processes, and heating for buildings. The hydrogen supply chain incorporates varied stages like production, storage, distribution, and applications at critical levels with strong interdependencies, thereby accelerating the complexities in the sector accordingly.
Moreover, the planning of HSC is highly reliant on hydrogen adoption and the market development arena, calculating the capability of technologies and categorising them accordingly per the increased uncertainties that pertain in the sector. Whereas traditional approaches to supply chain (SC) planning for HSCs directly can frequently encounter roadblocks, revising the practice is critical. To deal with the unique characteristics of the hydrogen supply chain, an established planning matrix that is radically developed with related planning tasks should be implemented.
Owing to its significance in the future and in facilitating a sustainable and low-carbon economy, renewable hydrogen has critically gained momentum in recent years. However, sketching the efficient scale of hydrogen supply chain management is likely to include various stages of renewable HSC adoption and market development, providing promising insights for the future. Hence, nations all over Europe are seeking out plausible opportunities to achieve a fossil-free energy system in the future, reducing carbon emissions for efficient infrastructure. As a result, the future of the sector is poised to embrace sustainable solutions, such as the potential scaling up of renewable HSC operations for increased growth in the Hydrogen Supply Chain.
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