Hydrogen is becoming increasingly integral to global energy transition strategies, especially in sectors difficult to electrify. In the Netherlands, industrial clusters are expected to be key centers for sustainable hydrogen supply and demand. However, smaller industries outside
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Hydrogen is becoming increasingly integral to global energy transition strategies, especially in sectors difficult to electrify. In the Netherlands, industrial clusters are expected to be key centers for sustainable hydrogen supply and demand. However, smaller industries outside the main clusters (Cluster 6) face significant challenges due to their distance from major demand points and the complexities of integrating hydrogen into their operations. They struggle with the high initial investment costs for on-site hydrogen generation, limited access to decarbonization subsidies, and the technical challenges posed by a congested electricity grid. The lower priority given to these regions in the hydrogen roll-out plan exacerbates the uncertainty and hesitancy among Cluster 6 industries, threatening the efficient development of regional hydrogen infrastructure and creating a risk of underutilization. The research employs a modeling approach and agent-based simulation to analyze the potential for collective action to overcome technical, economic, and institutional limitations, facilitating hydrogen production and consumption among smaller, dispersed industries. This approach allows for comparative analysis of emergent system behavior under different organizing principles, agent interactions, and government policy interventions. The simulation results highlight that collective investment is key to successful hydrogen transitions, with unified strategies leading to quicker and more effective outcomes. When driven by individual efforts instead of collective action, transitions tend to face delays and result with less sector inclusion. In regions with more hydrogen-dependent companies, contribution of collective action grows exponentially, with primary off-takers initiating the shift. However, relaxing subsidy criteria in such regional settings can weaken regional cooperation and slow progress. Therefore, designing region-specific policies that promote collaboration and encouraging communication and inclusiveness among companies can help achieve a smoother and more unified regional shift to hydrogen. Future research should address the limitations of the current study by incorporating more detailed cost-benefit analyses, exploring alternative hydrogen supply and transportation methods, and considering a broader range of factors influencing industrial decisions on hydrogen adoption.