Sizing up Hydrogen Storage - Quantifying the value of subsidizing hydrogen gas station infrastructure

An increasing share of intermittent energy increases the challenge of balancing production and demand in the Swedish electricity system.

Hydrogen can be used to store excess production of electricity and is also the fuel in fuel cell vehicles. This enables integration of the electricity and transport systems.

The capacity of hydrogen gas stations’ facilities is largely determined by the investment cost. With, for example, investment support for hydrogen gas station owners, the state can influence how much energy storage is installed. The cost of such an investment could be financed by reduced investment in transmission capacity.

Distributed energy storage also makes Sweden less susceptible to disruptions both in the grid and in our immediate surroundings.

The project investigates if investment support for hydrogen gas stations should be considered given the value that distributed energy storage brings, and how such a policy would affect the business models of hydrogen gas stations.