Commercial interfaces as a challenge for the build-up of hydrogen supply chains
globalrenewable-ammoniasupply-chain
The supply chains for renewable hydrogen and its derivatives are long, complex and often span multiple jurisdictions. Analyzing the ideal-typical renewable ammonia supply chain highlights enormous challenges in a highly uncertain market, including 1) information problems, 2) motivation or incentive problems, and 3) investment synchronization. During the build-up of structures, commercial risks must be managed at all contractual interfaces. From an organizational perspective, manufacturing, transportation, and processing are unlikely to be carried out by new and independent entities. Instead, historical trends in the gas industry suggest that coordination between broader segments of supply, logistics and the value chain will be relevant.