Study of Hydrogen Station Installation Utilizing Wind Power: Case study in Hokkaido

Abstract

Fuel cell vehicles (FCV) are a promising technology for Japan to achieve GHG emissions reduction and a selfsufficient energy system, but they have not been installed to a significant extent because of the “Chicken and Egg” dilemma between the roll-out of FCV and hydrogen stations. This research aims to identify the conditions under which hydrogen stations can be installed as economically feasible and continue to be utilized after installation with the initial level of hydrogen use. In order to achieve these aims, the hydrogen station business model is integrated with wind power, taking advantage of low marginal costs of this form of electricity generation. Considering the objectives of business, profit optimization of the business model is targeted. The results are analysed in three steps. Firstly, whether the business model provides incentive for investment. Secondly, whether the hydrogen station is utilized after its construction. Finally, through the analysis of the change in the local economy and in CO2 emissions caused by the energy system, the feasibility of the model is reinforced. From the analysis, it is suggested that by taking advantage of the low marginal cost of wind power, hydrogen stations can be utilized profitably while having positive impacts on the local economy and CO2 emissions.