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On Bremen's industrial transformation: The role of hydrogen in production

Author

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  • Sacht, Stephen
  • Wedemeier, Jan

Abstract

Hydrogen serves as an energy source and represents an important cornerstone for achieving the goal of maintaining a level of zero-carbon-dioxide emissions in industry production processes. Our analysis is based on the computable general equilibrium framework and focuses on a partial switch to hydrogen used in production in northern Germany, particularly in the Bremen region. The simulation results indicate that Bremen's chemical, steel, and copper industries could replace up to 1.5, 15, and 35%, respectively, of petroleum and natural gas with hydrogen, without negative effects on overall production, until 2032. The share of electricity based on renewable sources in the production of hydrogen amounts to approximately 74%. This step can be seen as required for the production of green hydrogen, i.e., in the absence of fossil energy sources.

Suggested Citation

  • Sacht, Stephen & Wedemeier, Jan, 2025. "On Bremen's industrial transformation: The role of hydrogen in production," HWWI Working Paper Series 1/2025, Hamburg Institute of International Economics (HWWI).
    • Handle: RePEc:zbw:hwwiwp:308096
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    More about this item

    Keywords

    Computable General Equilibrium Model Analysis; Hydrogen Economy; Regional and Industrial Development; Bremen;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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