Australia is committed to achieving net-zero emissions by 2050, a goal that may require a major transformation of the household energy sector. Hydrogen can, however, be deployed as a complementary energy source to electricity by displacing natural gas. But the potential for hydrogen to make this transition is dependent on building a credible Australian household hydrogen supply chain (HHSC), which includes national distribution centres (NDCs), regional distribution centres (RDCs) and local distribution centres (LDCs). The HHSC is particularly vulnerable to operational disruptions under rapid adoption pathways and in perfect-competition market conditions, where infrastructure, supply, and pricing decisions are decentralised. Hydrogen flows may be disrupted at the NDCs and RDCs, leading to failure to meet demand and monetary losses across the HHSC. While many studies have assessed vulnerabilities within hydrogen supply chains, there is little attention paid to the consequences of distribution-level failures. This research aims to quantify the impacts associated with distribution centre (DC) disruptions in the HHSC using a multi-period network optimisation model to assess three operational situations: ideal situations, disrupted-DC situations without mitigation strategies, and disrupted-DC situations with suitable mitigation strategies. The results indicate that without mitigation strategies, demand fulfilment could potentially drop to zero, penalty costs could increase drastically, and profitability could decrease due to not meeting demand. In contrast, the implications of suitable mitigation strategies, including rerouting hydrogen through alternate, unaffected NDCs or RDCs, using spare capacity by increasing operating hours, and maintaining safety stock at RDCs, significantly increase HHSC performance. In these situations, demand fulfilment increases to up to 95%, and profitability improves substantially. This study contributes to the hydrogen supply chain literature by demonstrating how HHSCs can be planned and replanned to manage disruptions in DCs. The study also provides practical insights for policymakers and managers for a sustainable HHSC.
Chakrabarty et al. (Sat,) studied this question.