1. Background and Motivation

As the share of renewable energy increases, the need for flexibility in the energy system grows. Batteries, demand-side management, and grid expansion can address short-term fluctuations. Longer periods of low wind and solar generation, however, require additional long-duration or seasonal storage solutions.

Hydrogen storage is considered a potential option for balancing renewable electricity over longer periods. Its economic viability is currently limited by high investment costs, conversion losses, uncertain demand, immature infrastructure, and unclear revenue models.

The business case depends on several interacting factors, including electrolyser costs, electricity-price volatility, the availability of surplus renewable electricity, storage and reconversion costs, and the frequency and duration of periods with low renewable generation. Potential revenues from system services, energy trading, capacity provision, or security of supply may also be relevant.

A systematic analysis is therefore required to determine under which energy-market conditions hydrogen storage can become economically viable.

2. Objective

The objective of this thesis is to analyse the economic viability of hydrogen storage and identify the main tipping points for profitable operation.

The analysis should consider:

• investment and operating costs of electrolysers,
• conversion efficiencies and hydrogen production costs,
• storage and reconversion costs,
• the frequency of negative or very low electricity prices,
• electricity-market price spreads,
• the availability of surplus renewable electricity,
• the frequency and duration of low-wind and low-solar periods, and
• potential revenues from system services or security-of-supply mechanisms.

A suitable methodology may combine historical electricity-market data, techno-economic modelling, and scenario-based projections for 2035 and 2045. Historical market conditions should be evaluated ex post and compared with future energy-system scenarios.

Optionally, a dispatch model may be developed to simulate the optimal operation of an integrated electrolyser, hydrogen-storage, and reconversion system under different market conditions.

The model should answer questions such as:

• At which electrolyser and storage costs does the system become economically viable?
• Which electricity-price spreads are required for profitable operation?
• How much low-cost or surplus renewable electricity must be available?
• How strongly do efficiency losses affect the business case?
• What role do extended periods of low renewable generation play?
• Which additional revenue streams are required to close the economic gap?

The expected result is a transparent tipping-point analysis showing under which combinations of costs, market prices, utilisation rates, and surplus electricity volumes hydrogen storage becomes economically sustainable.

3. Profile

Suitable for students in industrial engineering, energy economics, economics, business administration, energy engineering, information systems, operations research, or related disciplines.

Applicants should have:

• strong analytical and quantitative skills,
• an interest in electricity markets and hydrogen technologies,
• basic knowledge of economic modelling and investment appraisal,
• experience with data analysis, and
• proficiency in Excel and preferably Python, R, MATLAB, or similar tools.

4. Contact

Prof. Dr. Clemens van Dinther

3DSE Management Consultants GmbH

Email: C vanDinther ∂does-not-exist.3dse de

5. Starting Literature

• International Energy Agency: Global Hydrogen Review.
• International Energy Agency: The Future of Hydrogen.
• European Commission: A Hydrogen Strategy for a Climate-Neutral Europe.
• ENTSO-E: European Resource Adequacy Assessment.
• Fraunhofer ISE: Studies on hydrogen production costs and energy-system transformation.
• Agora Energiewende: Studies on renewable electricity, flexibility, and hydrogen infrastructure.
• Caglayan et al.: Research on the technical potential of large-scale hydrogen storage in Europe.