Contracts for difference key to hydrogen economy
If financial instruments are not established to support adoption, the hydrogen supply chain will stall
A collaborative effort between governments and industry will be vital if the hydrogen economy is to become a reality, according to the Hydrogen Council, a global CEO-led initiative. One central component of this is supporting the creation of financial instruments to support a market for green hydrogen. “The cost structure of green hydrogen is dominated by the cost of renewable power,” says CEO of UK-based ITM power, Graham Cooley. “Renewable power tends to be regional in its cost structure and the techniques that we use tend to be regional. But the EU has a strategy for developing a hydrogen business model, called a contract for difference (CFD) and that is unique in the world.” A CFD is a f
Also in this section
8 May 2024
Commission modelling of emission reduction pathway implies undershoot of current hydrogen production and imports targets, according to speakers at a recent Hydrogen Europe event
8 May 2024
Hydrogen cars may not have much credibility, but the same could have been said about EVs not too long ago
3 May 2024
Australia’s Fortescue and France’s EDF Renewables among the successful bidders as second-round auction draws green hydrogen projects worth about $11b
1 May 2024
High costs and uncertainty over offtake agreements are delaying project investment decisions, according to Aurora Energy Research