Optimizing interoperable hydrogen supply chain design: A case study in Auvergne-Rhône-Alpes

Low-carbon hydrogen is a key enabler of the energy transition, yet the optimal design of hydrogen supply chains remains uncertain in terms of cost and emissions. This study analyzes the trade-offs between centralized and decentralized hydrogen production and storage by proposing a novel superstructure integrating advanced production, storage, transport, and conditioning technologies. A spatial, multi-period mixed-integer linear programming optimization model is developed to minimize the Levelized Cost of Hydrogen (LCOH) while quantifying direct (on-site) CO 2 emissions along the supply chain. The model is applied to the Auvergne-Rhône-Alpes region in France. Results indicate that centralized hydrogen production based on steam methane reforming with carbon capture and storage achieves the lowest costs but results in higher emissions compared to electrolysis-based pathways. The cost-optimal configuration delivers hydrogen at an average LCOH of 4.0 €/kgH 2 with emissions of 1.60 kgCO 2 eq/kgH 2 , whereas the emissions-oriented configuration reduces emissions to 0.15 kgCO 2 eq/kgH 2 at an increased cost of 6.2 €/kgH 2 . Sensitivity analyses show that lower hydrogen demand initially favors decentralized configurations, reducing short-term costs, but leads to higher long-term LCOH once investments are amortized. A 20% reduction in capital costs has a stronger impact on refueling stations (−5.5%) than on production facilities (−1.6%). Under high energy price scenarios, LCOH increases by 55.3%, favoring supply chain designs that prioritize local resource utilization and hydrogen transport from renewable-rich to constrained areas. Future work will address demand and renewable supply uncertainties through stochastic modeling, extend the superstructure to additional technologies, and assess deployment pathways from regional to national scales. • A novel superstructure is proposed for hydrogen supply chain design. • Centralized and decentralized hydrogen supply chains are systematically compared. • A MILP model optimizes hydrogen supply chains using mature technologies. • The model is applied to a regional case study in Auvergne-Rhône-Alpes. • Economic and environmental assessments guide sustainable hydrogen supply chain design.