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Green hydrogen can help to decarbonize parts of the transportation sector,but its power sector interactions are not well understood. It may contribute tointegrating variable renewable energy sources if production is sufficientlyflexible in time. Using an open-source co-optimization model of the powersector and four options for supplying hydrogen at German filling stations, wefind a trade-off between energy efficiency and temporal flexibility: for lowershares of renewables and hydrogen, more energy-efficient and less flexiblesmall-scale on-site electrolysis is optimal. For higher shares of renewablesand/or hydrogen, more flexible but less energy-efficient large-scale hydrogensupply chains gain importance as they allow disentangling hydrogen productionfrom demand via storage. Liquid hydrogen emerges as particularly beneficial,followed by liquid organic hydrogen carriers and gaseous hydrogen. Large-scalehydrogen supply chains can deliver substantial power sector benefits, mainlythrough reduced renewable surplus generation. Energy modelers and systemplanners should consider the distinct flexibility characteristics of hydrogensupply chains in more detail when assessing the role of green hydrogen infuture energy transition scenarios.

Optimal supply chains and power sector benefits of green hydrogen