Project 3: Business Strategy Project
The commercialization of hydrogen infrastructure and fuel cell technologies poses a variety of technological risks that can be evaluated using engineering-based models to inform both business strategy and the public policy process. Translating the results of techno-economic analyses into a useful business strategy or policy context often requires additional analysis. Methods include comparative analysis of technological choices, scenario development, evaluation of innovative system designs and system optimization or simulation modeling. The results of these types of analyses can help to reduce technological uncertainty faced by investors, as well as inform future government or industry research and development portfolios.
The development of a hydrogen infrastructure is unique from a business perspective in that it will likely rely upon a high degree of partnership and coalition forming between involved stakeholders. Due to the high upfront capital costs of hydrogen infrastructure technologies, as well as the uncertainty surrounding the commercialization of future hydrogen vehicles, early hydrogen infrastructure efforts are more likely to succeed within a carefully regulated environment. Business strategy can be informed by research that focuses on the types of regulations and institutional arrangements that can effectively support partnerships between business stakeholders, government agencies, and non-government organizations. Relying upon results derived from engineering-based models, potential governance structures or contract arrangements can be proposed, simulated and assessed in terms of their ability to reduce risks, meet business goals and effectively utilize stakeholder resources.
Research Faculty: Marc W. Melaina
Funding: Hydrogen Pathways Program