Stochastic optimization for strategic planning of efficient and sustainable hydrogen supply chain networks under demand uncertainty

<p>Hydrogen has emerged as a crucial energy carrier, playing a vital role in the global transition towards a low-carbon economy. Despite its growing strategic importance, accurately forecasting hydrogen demand remains challenging due to the influence of diverse and interdependent factors. An e...

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Main Author: Mohamed Amjath (17542512) (author)
Other Authors: Fadwa Eljack (3333444) (author), Mohamed Haouari (10340697) (author)
Published: 2025
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author Mohamed Amjath (17542512)
author2 Fadwa Eljack (3333444)
Mohamed Haouari (10340697)
author2_role author
author
author_facet Mohamed Amjath (17542512)
Fadwa Eljack (3333444)
Mohamed Haouari (10340697)
author_role author
dc.creator.none.fl_str_mv Mohamed Amjath (17542512)
Fadwa Eljack (3333444)
Mohamed Haouari (10340697)
dc.date.none.fl_str_mv 2025-07-26T15:00:00Z
dc.identifier.none.fl_str_mv 10.1016/j.compchemeng.2025.109298
dc.relation.none.fl_str_mv https://figshare.com/articles/journal_contribution/Stochastic_optimization_for_strategic_planning_of_efficient_and_sustainable_hydrogen_supply_chain_networks_under_demand_uncertainty/29655806
dc.rights.none.fl_str_mv CC BY 4.0
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv Commerce, management, tourism and services
Transportation, logistics and supply chains
Engineering
Electrical engineering
Fluid mechanics and thermal engineering
Hydrogen supply chain
Stochastic optimization
Hydrogen economy
Demand uncertainty
Strategic planning
dc.title.none.fl_str_mv Stochastic optimization for strategic planning of efficient and sustainable hydrogen supply chain networks under demand uncertainty
dc.type.none.fl_str_mv Text
Journal contribution
info:eu-repo/semantics/publishedVersion
text
contribution to journal
description <p>Hydrogen has emerged as a crucial energy carrier, playing a vital role in the global transition towards a low-carbon economy. Despite its growing strategic importance, accurately forecasting hydrogen demand remains challenging due to the influence of diverse and interdependent factors. An effective and sustainable infrastructure planning requires modeling frameworks that explicitly incorporate demand uncertainty inherent in hydrogen market projections. This study proposes a stochastic mixed-integer linear programming (SMILP) framework for optimizing the strategic development of hydrogen supply chain (HSC) infrastructure, accounting for the demand uncertainty. Demand uncertainty is modeled using discrete probabilistic realizations across multiple time periods. A novel approach is presented in incorporating and quantifying the expected penalty costs for unfulfilled demand through a linear formulation. The proposed model aims to minimize the total system cost, encompassing both economic and emission costs across all stages of the HSC, including production, conditioning and storage, transportation, and re-conditioning. This study uses Qatar as an illustrative case to evaluate three distinct investment strategies to test the model's applicability in real-world scenarios. Across the different strategies, the end-to-end levelized cost of hydrogen (LCOH) for the entire supply chain ranges from $3.55/kg to $3.68/kg, while the production LCOH ranges from $1.18/kg to $1.23/kg. The findings highlight the importance of adopting a balanced approach to infrastructure planning, particularly under volatile and fluctuating market conditions.</p><h2>Other Information</h2> <p> Published in: Computers & Chemical Engineering<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.compchemeng.2025.109298" target="_blank">https://dx.doi.org/10.1016/j.compchemeng.2025.109298</a></p>
eu_rights_str_mv openAccess
id Manara2_7a977c2ee7dfe659730ee094054cc268
identifier_str_mv 10.1016/j.compchemeng.2025.109298
network_acronym_str Manara2
network_name_str Manara2
oai_identifier_str oai:figshare.com:article/29655806
publishDate 2025
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rights_invalid_str_mv CC BY 4.0
spelling Stochastic optimization for strategic planning of efficient and sustainable hydrogen supply chain networks under demand uncertaintyMohamed Amjath (17542512)Fadwa Eljack (3333444)Mohamed Haouari (10340697)Commerce, management, tourism and servicesTransportation, logistics and supply chainsEngineeringElectrical engineeringFluid mechanics and thermal engineeringHydrogen supply chainStochastic optimizationHydrogen economyDemand uncertaintyStrategic planning<p>Hydrogen has emerged as a crucial energy carrier, playing a vital role in the global transition towards a low-carbon economy. Despite its growing strategic importance, accurately forecasting hydrogen demand remains challenging due to the influence of diverse and interdependent factors. An effective and sustainable infrastructure planning requires modeling frameworks that explicitly incorporate demand uncertainty inherent in hydrogen market projections. This study proposes a stochastic mixed-integer linear programming (SMILP) framework for optimizing the strategic development of hydrogen supply chain (HSC) infrastructure, accounting for the demand uncertainty. Demand uncertainty is modeled using discrete probabilistic realizations across multiple time periods. A novel approach is presented in incorporating and quantifying the expected penalty costs for unfulfilled demand through a linear formulation. The proposed model aims to minimize the total system cost, encompassing both economic and emission costs across all stages of the HSC, including production, conditioning and storage, transportation, and re-conditioning. This study uses Qatar as an illustrative case to evaluate three distinct investment strategies to test the model's applicability in real-world scenarios. Across the different strategies, the end-to-end levelized cost of hydrogen (LCOH) for the entire supply chain ranges from $3.55/kg to $3.68/kg, while the production LCOH ranges from $1.18/kg to $1.23/kg. The findings highlight the importance of adopting a balanced approach to infrastructure planning, particularly under volatile and fluctuating market conditions.</p><h2>Other Information</h2> <p> Published in: Computers & Chemical Engineering<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.compchemeng.2025.109298" target="_blank">https://dx.doi.org/10.1016/j.compchemeng.2025.109298</a></p>2025-07-26T15:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1016/j.compchemeng.2025.109298https://figshare.com/articles/journal_contribution/Stochastic_optimization_for_strategic_planning_of_efficient_and_sustainable_hydrogen_supply_chain_networks_under_demand_uncertainty/29655806CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/296558062025-07-26T15:00:00Z
spellingShingle Stochastic optimization for strategic planning of efficient and sustainable hydrogen supply chain networks under demand uncertainty
Mohamed Amjath (17542512)
Commerce, management, tourism and services
Transportation, logistics and supply chains
Engineering
Electrical engineering
Fluid mechanics and thermal engineering
Hydrogen supply chain
Stochastic optimization
Hydrogen economy
Demand uncertainty
Strategic planning
status_str publishedVersion
title Stochastic optimization for strategic planning of efficient and sustainable hydrogen supply chain networks under demand uncertainty
title_full Stochastic optimization for strategic planning of efficient and sustainable hydrogen supply chain networks under demand uncertainty
title_fullStr Stochastic optimization for strategic planning of efficient and sustainable hydrogen supply chain networks under demand uncertainty
title_full_unstemmed Stochastic optimization for strategic planning of efficient and sustainable hydrogen supply chain networks under demand uncertainty
title_short Stochastic optimization for strategic planning of efficient and sustainable hydrogen supply chain networks under demand uncertainty
title_sort Stochastic optimization for strategic planning of efficient and sustainable hydrogen supply chain networks under demand uncertainty
topic Commerce, management, tourism and services
Transportation, logistics and supply chains
Engineering
Electrical engineering
Fluid mechanics and thermal engineering
Hydrogen supply chain
Stochastic optimization
Hydrogen economy
Demand uncertainty
Strategic planning