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

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.