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Publication Detailed Description
Investing in the hydrogen delivery infrastructure: methodology for a public policy
Journal Title
Energy Studies Review
Year (definitive publication)
2010
Language
English
Country
Canada
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Abstract
Hydrogen and fuel cells are a radical innovation with great potential, but they are currently surrounded by numerous uncertainties. It is argued that demand and technological uncertainties are particularly important. An economic analysis is performed for a hydrogen refuelling station to understand the way uncertainties work. Even though the investment has a negative NPV today, it can be justified by the option value given to the owner for the future. In addition, the profitability of the station depends heavily on the demand; the evolution of which is still unpredictable unless public authorities decide to create a stable early demand.
Acknowledgements
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Keywords
infrastructure,uncertainty,hydrogen
Fields of Science and Technology Classification
- Earth and related Environmental Sciences - Natural Sciences
- Other Natural Sciences - Natural Sciences
- Economics and Business - Social Sciences
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