Optimization-based approach for strategic design and operation of a biomass-to-hydrogen supply chain

•A mathematical model is developed for B2H2 supply chain.•The model is applied to renewable hydrogen system of Jeju Island, Korea.•The inventory and import policies are compared in terms of cost saving.

We present a new optimization-based approach for design and operation of a renewable hydrogen system from various types of biomass. To achieve this goal, we develop an optimization model (mixed integer linear programming) which determines the optimal logistics decision-making to minimize the total annual cost for a comprehensive biomass-to-hydrogen (B2H2) supply chain with import and inventory strategies. With the proposed approach we can identify the optimal design of the supply chain and main cost-drivers, manage logistics operations against fluctuations of biomass availability and hydrogen demand, and make strategic decisions for planning the B2H2 system such as capital investment and energy import planning. To validate the model, a case study of an upcoming B2H2 supply chain for the transportation sector at Jeju Island, Korea, is analyzed. Finally, a sensitivity analysis is conducted to provide insights into the efficient management of the B2H2 supply chain.