Decarbonizing CHP Systems via Hydrogen: Specific Drivers and Hurdles in Highly Industrialized Regions Like Saarland, Germany

Abstract

The global energy transition demands solutions that balance intermittent renewable energy generation while decarbonizing heat and power sectors. Hydrogen has appeared as a versatile energy carrier, enabling sector coupling across electricity, heat, and industry. This work explores the integration of hydrogen into combined heat and power (CHP) systems, with a regional focus on Saarland, Germany. It depicts H2-ready technologies including combustion engines, gas turbines, and fuel cells, and introduces a custom Python-based (Version 3.13) techno-economic optimization model to simulate multi-energy system opera tions. The analysis reveals that high hydrogen costs, electricity price volatility, and market design significantly constrain economic viability. However, Saarland’s industrial structure and cross-border infrastructure projects offer strategic opportunities for scalable hydrogen deployment. The article concludes with targeted recommendations for technology devel opment, policy reform, and regional replication, positioning hydrogen CHP as a flexible and decarbonizing solution in energy-intensive regions.