For industrialized countries, such as the Netherlands and Germany, green hydrogen is an attractive sustainable alternative to fossil fuels. For instance, green hydrogen could replace coal in iron making and natural gas in fertilizer production. Green hydrogen is produced from water and green power with a so-called electrolyser. Green hydrogen production is still in its infancy, however, and needs to be scaled up to have any impact.

In this talk, Vinzenz Koning will discuss this scale-up from two complementary angles. First, the perspective of a central planner is used to explore the integration of green hydrogen production and electrolyser deployment within a power system that is progressively decarbonised through the expansion of wind and solar energy. Under what conditions does electrolyser deployment make economic and environmental sense? At what rate should electrolysers be deployed? Second, the perspectives of key stakeholders are considered to analyse investment dynamics in the interconnected electricity, hydrogen, and electrolyser markets using an agent-based modelling approach. Can the scale-up of hydrogen production emerge from the investment decisions of power producers, hydrogen producers, and electrolyser manufacturers?

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