Policy & Socio-Economics

This study presents a techno-economic optimization of hydrogen production using hybrid wind-solar systems across six Australian cities highlighting Australia’s green hydrogen potential. A hybrid PVwind-electrolyzer-hydrogen tank (PV-WT-EL-HT) system demonstrated superior performance with Perth achieving the lowest Levelized Cost of Hydrogen (LCOH) at $0.582/kg Net Present Cost (NPC) of $27.5k and Levelized Cost of Electricity (LCOE) of $0.0166/kWh. Perth also showed the highest return on investment present worth and annual worth making it the preferred project site. All locations maintained a 100% renewable fraction proving the viability of fully decarbonized hydrogen production. Metaheuristic validation using nine algorithms showed the Mayfly Algorithm improved techno-economic metrics by 3–8% over HOMER Pro models. The Gray Wolf and Whale Optimization Algorithms enhanced system stability under wind-dominant conditions. Sensitivity analysis revealed that blockchain-based dynamic pricing and reinforcement learning-driven demand response yielded 8–10% cost savings under ±15% demand variability. Nevertheless regional disparities persist; southern cities such as Hobart and Melbourne exhibited 20–30% higher LCOH due to reduced renewable resource availability while densely urbanized cities like Sydney presented optimization ceilings with minimal LCOH improvements despite algorithmic refinements. Investment in advanced materials (e.g. perovskite-VAWTs) and offshore platforms targeting hydrogen export markets is essential. Perth emerged as the optimal hub with hybrid PV/WT/B systems producing 200–250 MWh/ month of electricity and 200–250 kg/month of hydrogen supported by policy incentives. This work offers a blueprint for region-specific AI-augmented hydrogen systems to drive Australia’s hydrogen economy toward $2.10/kg by 2030.

Insular regions face unique energy management challenges due to physical isolation. Graciosa (Azores) has high renewable energy sources (RES) potential theoretically enabling a 100% green system. However RES intermittency combined with the lack of energy storage solutions reduces renewable penetration and raises curtailment. This article studies the technical and economic feasibility of producing green hydrogen from curtailment energy in Graciosa through two distinct case studies. Case Study 1 targets maximum renewable penetration with green hydrogen serving as chemical storage converted back to electricity via fuel cells during RES shortages. Case Study 2 focuses on maximum profitability where produced gases are sold to monetize curtailment without additional electricity production. Levelized Cost of Hydrogen (LCOH) values of €3.06/kgH2 and €2.68/kgH2 respectively and Internal Rate of Return (IRR) values of 3.7% and 17.1% were obtained for Case Studies 1 and 2 with payback periods of 15.2 and 6.1 years. Hence only Case Study 2 is economically viable but it does not allow increasing the renewable share in the energy mix. Sensitivity analysis for Case Study 1 shows that overall efficiency and CAPEX are the main factors affecting viability highlighting the need for technological advances and economies of scale as well as the importance of public funding to promote projects like this.

To meet decarbonization targets demand for low-emission hydrogen is increasing. A considerable share of supply will come from latecomer countries. We study how latecomer countries and firms participate in the emerging global low-emission hydrogen economy and how industrial policies can help maximize societal benefits. This requires a specific conceptualization of industrial policy: First the latecomer condition calls for specific policy mixes as latecomers typically cannot build on established innovation systems and network externalities and rather need to combine FDI attraction with measures strengthening absorptive capacity and ensuring knowledge transfer from FDI to domestic firms; second low-emission hydrogen is a policy-induced alternative that requires creating entirely new firm ecosystems while competing with lower-cost emission-intensive incumbent technologies. Hence industrial policies need to account for enhanced coordination failure and internalization of environmental costs. We analyze the published national hydrogen strategies of 20 latecomer economies and derive a novel typology differentiating four hydrogen-specific industrial development pathways. For each pathway we assess entry barriers and risks identify the policies suggested in the country strategies and discuss how likely those are to be successful. The novel pathway typology and comparison of associated policy mixes may help policymakers maximize the gains of hydrogen investments.