The impact of hydrogen underground storage on fair partnerships - A GIS-based integration of salt caverns into PyPSA-Earth
Abstract
The increasing demand for hydrogen in Europe and the development of cross-border infrastructure, such as the SoutH2 Corridor connecting Tunisia, Italy, Austria, and Germany, underscore the importance for hydrogen storage solutions to ensure supply security and competitive pricing. In the absence of storage, producers face increased market dependency, as electrolyzers require continuous operation to remain economically viable. At the same time, storage capacity presents an opportunity to enhance local value chains by securing hydrogen availability for domestic industries. This research extends the open-source energy system model PyPSA-Earth by integrating GIS-based hydrogen underground storage in salt caverns and applies the model to Tunisia as a key hydrogen exporter along the SoutH2 Corridor. Salt caverns are considered the most economical option for large-scale hydrogen storage, offering operational flexibility for both export and domestic use. By simulating various storage scenarios, we assess their impact on hydrogen export dynamics, price stability, and local industrial development. Preliminary results indicate that underground hydrogen storage significantly enhances the economic feasibility of hydrogen production by mitigating price volatility and enabling continuous electrolyzer operation. Furthermore, stored hydrogen can serve as a reliable supply for domestic sectors such as manufacturing and transport, fostering economic growth. This study contributes to the discourse on socially and climate-just hydrogen partnerships by demonstrating how strategic storage integration can balance Tunisia’s role as a hydrogen exporter with domestic development benefits.
