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

H-2 is an important commodity chemical that can also be used as an alternative fuel. The way how H-2 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 H-2 from the centralized production facilities to the end-use sites like H-2 stations that will be distributed throughout a region. Here, we propose a methodology for configuring the distributed H-2 production system that minimizes the overall cost in delivering H-2 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 H-2 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 H-2 are provided, as well as specific improvements required to make H-2 affordable at the level defined by the international society. (C) 2020 Hydrogen Energy Publications LLC. Published by Elsevier Ltd. All rights reserved.