AI-Based Digital Twin Development for Optimizing Hydrogen Production, Distribution, and Business Profitability

Authors

  • Nicholas Renaldo Institut Bisnis dan Teknologi Pelita Indonesia, Indonesia
  • Jaswar Koto Ocean and Aerospace Research Institute, Japan
  • M. Dalil Universitas Riau, Indonesia
  • Dodi Sofyan Arief Universitas Riau, Indonesia
  • Sulaiman Musa Bayero University, Nigeria
  • Nindy Daviny Universitas Riau, Indonesia
  • Cecilia Cecilia East China Normal University, China
  • Kristy Veronica Institut Bisnis dan Teknologi Pelita Indonesia, Indonesia

DOI:

https://doi.org/10.35145/s04p2v22

Keywords:

Artificial Intelligence, Digital Twin, Green Hydrogen, Hydrogen Business, Techno-Economic Optimization

Abstract

The transition toward a low-carbon energy system has increased interest in green hydrogen as an energy carrier for renewable energy integration, industrial applications, and sustainable transportation. However, the economic competitiveness of hydrogen remains constrained by the complexity of coordinating renewable-energy availability, electrolyzer operation, hydrogen storage, distribution, market demand, and profitability. This study proposes an AI-Based Hydrogen Business Digital Twin (HBDT) to optimize hydrogen production, distribution, and business profitability through an integrated digital decision-making framework. The research employs a simulation-based development approach that combines Digital Twin technology, Artificial Intelligence, predictive analytics, multi-objective optimization, and techno-economic analysis. Several machine-learning models, including Random Forest, Support Vector Regression, XGBoost, Artificial Neural Network, and Long Short-Term Memory (LSTM), are evaluated for predictive performance. The simulation results indicate that LSTM provides the strongest performance, achieving an MAE of 0.041, RMSE of 0.068, and R2 of 0.981. Scenario analysis demonstrates that profitability increases from 12.5% under fixed production and distribution to 32.4% under the integrated AI, Digital Twin, and optimization scenario. The techno-economic simulation further indicates reductions in hydrogen production cost, levelized cost of hydrogen, and distribution costs, accompanied by improvements in renewable-energy utilization, revenue, ROI, and payback period. These findings demonstrate that the proposed HBDT can transform hydrogen management from a static and reactive process into a predictive, prescriptive, and potentially autonomous business ecosystem. The study contributes to the emerging concept of Hydrogen Business 4.0, in which technical operations and economic decisions are continuously optimized through AI and Digital Twin technologies.

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Published

2026-01-31

How to Cite

AI-Based Digital Twin Development for Optimizing Hydrogen Production, Distribution, and Business Profitability. (2026). Journal of Applied Business and Technology, 7(1), 62-78. https://doi.org/10.35145/s04p2v22

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