A robust design of hydrogen supply chain with integrated sustainable pricing policy under government intervention: Circular economy-driven management

Danyal Aghajani, Hani Gilani, Hadi Sahebi and Jyri Vilko

Energy, 2025, vol. 334, issue C

Abstract: In the quest for sustainable energy solutions, hydrogen stands out as a pioneering alternative fuel with the potential to revolutionize energy supply chains. Despite its environmental advantages, high costs and incomplete exploitation of hydrogen production hinder widespread adoption. This study proposes a novel supply chain framework for bio-hydrogen production from municipal solid waste (MSW) and dairy residues, integrating waste centers, bio-refineries, carbon capture and storage, and refueling infrastructure. A combined Stackelberg-Cournot approach is introduced, where hydrogen and petroleum producers partake in Cournot competition under government incentives for green production, technology promotion, and job creation, guided by a Stackelberg leader. The resulting hydrogen price, derived from the model, is incorporated into a mixed-integer multi-objective linear programming model with a possibilistic perspective to address uncertainties. Implemented in a Finnish case study, the model yields Pareto optimal solutions and sensitivity analyses, ensuring reliability and robustness. The Stackelberg-Cournot pricing policy sets hydrogen at €5.3–€11.16, informed by 12 crucial parameters. Meeting demand without shortages requires boosting refueling centers by 40 %, while other facilities work at full capacity. Although the deterministic model delivers roughly triple the profit of its robust counterpart, the latter exhibits more resilience against uncertainties.

Keywords: Hydrogen supply chain; Circular economy; Fuel pricing; Game theory; Robust optimization (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:334:y:2025:i:c:s036054422503302x

DOI: 10.1016/j.energy.2025.137660

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