ERIKSSON: A Global Market Model for Green Hydrogen and its Derivatives with Strategic Behavior and Detailed Supply

In response to global goals for reducing greenhouse gas emissions, a market for green hydrogen and hydrogen derivatives produced from renewable energy sources is currently emerging. The structure of the emerging market is unclear due to a lack of experience with such a market and high uncertainties regarding future costs and demand. We want to learn how the market could develop to gain insights for policymakers and decision-makers. To this end, we introduce the new global trade model, ERIKSSON, simulating the future global market for green hydrogen and hydrogen derivatives. The model includes specific characteristics of such a market, like strategic behavior, a detailed mapping of global renewable energy potentials, conversion and competition between multiple commodities, temporal availability of renewable energy production, and losses. ERIKSSON builds a basis for further research on possible market equilibria.