Hydrogen offers opportunities to develop a sustainable energy system and is essential to support the EU’s commitment to reaching carbon neutrality by 2050. Hydrogen is a solution for heavy transport sectors that struggle to reduce emissions by direct electrification, such as the Dutch inland waterway transport (IWT) sector. However, the lack of economic viability is one of the most dominant challenges for hydrogen, which calls for a tailored and sectoral policy approach that considers the dynamics involved in the IWT sector. This study simulates the decision-making process of active ships in the Netherlands based on the economic trade-off between diesel- and hydrogenpowered drivetrains to identify policy measures that would catalyze the sector’s hydrogen transition.

In the simulated base scenario, NOx, PM, and CO2 emission targets are not met. Economic policies must contribute to the realization of these emission targets. Here, quantity-based economic instruments are preferred over price-based economic. Quantity-based economic instruments ensure that emission targets are realized virtually, while the effect of price-based economic instruments is subject to uncertainties related to cost developments, for instance. The introduction of a Renewable Energy (HBE) obligation and the inclusion of the IWT sector in the Emission Trading Scheme (ETS) are effective quantity-based economic instruments. When implementing both these instruments, policymakers must prevent double burdening of the IWT sector.

When introducing an HBE obligation, obligation levels must be set in accordance with the emission goals and a multiplier for hydrogen is recommended to create a level playing field with other renewable fuels. To include the IWT sector in the ETS, the minimum tonnage condition for ships must be removed. In addition to these policies, subsidies must be provided on the large capital investments for hydrogen to compensate for the higher marginal abatement cost in the IWT sector and create a level playing field with other transport modes, countries and fuels. Besides economic policies, the development of relevant regulation and bunkering infrastructure is a prerequisite for the hydrogen transition in the IWT sector.

This research mainly focused on a techno-economic trade-off between hydrogen- and diesel-powered drivetrains. Future research could focus on additional (qualitative) criteria in the decision-making process, such as upcoming legislation, safety, and (bunkering) infrastructure availability.

The Port of Rotterdam has the vision to become a zero-emission port in 2050. At the mo- ment, the port area emits about 18% of Dutch CO2 emissions. Various studies have been conducted on how to reach this vision. Among others, the Wuppertal Institute has investig- ated what set of technologies in each scenario would be desirable to employ. However, these studies were bound to the geographical context of the emissions. The tremendous impact of the up- and downstream flows was not included and is not included in the Dutch emis- sion statistics. This thesis is the first element of a two-part analysis. In this part, a green hydrogen supply chain from the Port of Sohar towards the Port of Rotterdam will be taken as a case study in order to evaluate the current techno-economic potential of such a supply chain. The second part will evaluate which hydrogen markets in the hinterland of the Port of Rotterdam are feasible for the introduction of green hydrogen sourced from the Port of Sohar. This green hydrogen supply chain is based on solar pv solely, in combination with electrolyz- ers, hydrogen storage, liquefaction and liquid hydrogen shipping. A cost model is proposed, that includes each stage of this supply chain. Finally, a price per kilogram of hydrogen is calculated. The price of hydrogen arriving in Rotterdam is found to be 2.17 [$ · kg−1], including shipping. Even though the price of green hydrogen arriving in Rotterdam is lower than the price of green hydrogen based on electrolysis produced locally, it is yet more expensive in comparison to grey or blue hydrogen produced in the Netherlands. However, economies of scale have not been included in this analysis, neither the potential of cost optimization throughout this supply chain. Therefore, future research is required to evaluate further cost reduction potential in this supply chain.

Due to the abundance of solar energy resources in Oman and the participation in the joint venture of the Port of Rotterdam in the Port of Sohar, importing green hydrogen in the Port of Rotterdam has been suggested. In part one of this two-part research (Shipping Sunshine) two green hydrogen import prices were calculated based on a 100 [GW] solar pv system. The first price of 1.97 [e·kg−1] hydrogen received at the Port of Rotterdam considers cur- rent costs. The second price of 1.47 [e·kg−1] considers a 50% decline in solar pv module and electrolyzer capital expenditure costs. However, supply and demand of green hydrogen have to be created simultaneously. This second part will identify which hydrogen markets in the hinterland of the Port of Rot- terdam are feasible from a techno-economic perspective given both import prices and an ETS price of 25 and 80 [e·t−1] respectively. Besides, it will evaluate the carbon emission abatement cost in these markets. A new methodology is proposed, using hydrogen parity prices to create a level playing field in comparing these markets as well as synthetic fuel costs. Furthermore, the existing supportive policies will be included. Lastly, the required prices in these markets are compared to current market prices. At a green hydrogen import price of 1.47 [e·kg−1] and an ETS price of 80 [e·t−1], the following hydrogen markets are feasible: mobility, steel industry, natural gas blending, low temperature heat, natural gas power plants, SMR substitution and harbor tugs. The mar- ginal abatement cost ranges from minus 350 [e·tCO2−1] to 460 [e·tCO2−1]. Future research could focus on the sensitivity of these hydrogen markets when other techno-economic para- meters change, thereby affecting the parity price of these specific hydrogen markets. Besides, future research could identify the future volume of the studied hydrogen markets.

To limit global warming to 2 degrees Celsius in 2100, the European power sector needs to transform. Renewable energy capacity is required to reach this ambition, together with transmission and storage capacity to maintain grid stability. Carbon capture and storage could potentially decrease the required renewable energy capacity, while simultaneously increasing grid flexibility. This research focuses on finding a cost-optimal composition of technologies, while abiding by the goals set in the Paris climate treaty. To investigate this objective, two optimisation models are compared: a linear programmed optimisation model with a high temporal and low technical resolution, and a unit commitment model with a low temporal but high technical resolution. Fixed costs and installed capacities are determined by the linear model. Subsequently, both models calculate the optimal generation mix. Three scenarios for 2050 were evaluated: a 'business as usual' reference scenario with maximum emission comparable to 2014 levels, a scenario with a maximum emission consistent with a 96% reduction in 2050 compared to 2014 and a scenario with that same target and the possibility to implement carbon capture and storage. The results show that the goals set by the Paris agreement increase system costs of the European power sector, but the increase is moderated by deployment of carbon capture and storage. Compared to the linear model, unit commitment increases variable costs, but this increase is modest, serving as confirmation that a linear modelling approach can be sufficient for answering a wide range of questions. To increase accuracy, one might integrate both models and provide a complete answer that integrates long time-spans and a wide variety of technical constraints.