Multi-storage, multi-energy, and multi-policy optimization for hybrid green and grey hydrogen production: A regional study in China

Abstract

Green hydrogen is key to global decarbonization. This study optimizes regional green-grey hydrogen production in China, using a multi-storage (hydrogen and battery) and multi-renewable energy model. The focus is on minimizing the levelized cost of hydrogen and carbon emission factor, incorporating carbon reduction policies. The results show that the tradable green certificates policy leads to a lower cost, while the cap-and-trade mechanism accelerates the achievement of grey hydrogen substitution across China’s regions by 20 years to 2060. Regions rich in renewable energy achieve $5/kg lower costs and 6 years faster substitution. Hydrogen storage is the most cost-effective solution, hybrid storage is preferable in low renewable energy areas, while battery storage incurs costs that are 25% to 150% higher. The trade-off between carbon emission and cost highlights each region’s inflection point, essential for designing incentive policies.