Optimal design of the distributed H2 production system with cost and safety considerations

H2 is an important commodity chemical that can also be used as an alternative fuel. The way how H2 is currently produced and distributed, however, is not compatible with this usage. This is primarily due to the high costs associated with storing and delivering H2 from the centralized production facilities to the end-use sites like H2 stations that will be distributed throughout a region. Here, we propose a methodology for configuring the distributed H2 production system that minimizes the overall cost in delivering H2 to demand sites while meeting the safety requirements. The methodology also takes into account changes in costs with respect to production volume by applying the concept of economy of scale. The proposed methodology is applied to a hypothetical case involving H2 supply to three stations. The results demonstrate significant reduction in the overall cost when adopting the optimal solution found by our methodology compared to the traditional, centralized production system. Insights on the cost structures associated with producing and delivering H2 are provided, as well as specific improvements required to make H2 affordable at the level defined by the international society.