Green Hydrogen Supply Chain Risk Analysis: A European Hard-to-abate Sectors Perspective

Green hydrogen is a tentative solution for the decarbonisation of hard-to-abate sectors such as steel, chemical, cement, and refinery industries. Green hydrogen is a form of hydrogen gas that is produced using renewable energy sources, such as wind or solar power, through a process called electrolysis. The green hydrogen supply chain includes several interconnected entities such as renewable energy providers, electrolysers, distribution facilities, and consumers. Although there have been many studies about green hydrogen, little attention has been devoted to green hydrogen supply chain risk identification and analysis, especially for hard-to-abate sectors in Europe. This research contributes to existing knowledge by identifying and analysing the European region’s green hydrogen supply chain risk factors. Using a Delphi method 7 categories and 43 risk factors are identified based on the green hydrogen supply chain experts’ opinions. The best-worst method is utilised to determine the importance weights of the risk categories and risk factors. High investment of capital for hydrogen production and delivery technology was the highest-ranked risk factor followed by the lack of enough capacity for electrolyser, and policy & regulation development. Several mitigation strategies and policy recommendations are proposed for high-importance risk factors. This study provides novelty in the form of an integrated approach resulting in a scientific ranking of the risk factors for the green hydrogen supply chain. The results of this study provide empirical evidence which corroborates with previous studies that European countries should endeavour to create comprehensive and supportive standards and regulations for green hydrogen supply chain implementation.