Business analysis of the hydrogen refueling station infrastructure and the role of the pricing system

The introduction of the hydrogen refueling stations infrastructure is a complex issue not only from the technological but also economic perspective. The paper focuses on the impact of transfer prices between different steps of the hydrogen value chain on the financial results of potential investors. Assuming a given selling price to the consumer, such transfer prices can be seen as an instrument for the allocation of financial risks and rewards between investors. However, asymmetric information may lead to conflicting objectives and insufficient design of the entire infrastructure. The paper presents also financial outcomes of an infrastructure analysis in Berlin and Hamburg. Based on the results of an infrastructure simulation respective revenues and costs for investors are determined. Assuming specific hydrogen prices the study shows that the design of the pricing system has major impact on the financial situation of single actors and consequently on the success of the hydrogen initiative. Copyright (C) 2011, Hydrogen Energy Publications, LLC. Published by Elsevier Ltd. All rights reserved.