Multi-Objective Optimization of Green Hydrogen Production and Ancillary Service Participation : An SE3 case study balancing project NPV and emissions while qualifying for Nordic capacity-market services

Sammanfattning

Green hydrogen will be central to deep decarbonization, but project-level choices on electrolyzer technology, storage, power sourcing, and market participation are highly path-dependent. This thesis develops a multi-objective optimization tool that co-optimizes technology choice and sizing (PEM vs. alkaline, with/without BESS and H₂ storage) and hourly dispatch under EU RFNBO compliance (hourly matching, emissions threshold) while enforcing Nordic ancillary-service rules (bid sizes, activation times). The framework integrates degradation-aware operations (stack SoH, replacement downtime), PPA + grid sourcing with provenance tracking for “green” hydrogen, and reserve-market headroom coupling (aFRR/mFRR/FCR). A hybrid solution method combines deterministic feasibility (LP/MILP) with NSGA-II to surface Pareto fronts across NPV (including ancillary revenues), emissions, and degradation.A Swedish SE3 case study demonstrates how BESS smooths ramps, enables reserve participation, and reduces degradation, while H₂ storage increases temporal decoupling and compliance headroom. Results highlight actionable trade-offs: configurations that minimize emissions often require larger storage or stricter dispatch, whereas profit-maximizing strategies reserve capacity for reserves and accept modest efficiency or lifetime penalties. The tool reveals implementable operating points under policy and market constraints and provides an auditable basis for design selections and sensitivity testing.