Green hydrogen competes with big business for renewable PPAs

Corporate and utility buyers are seen as more credible counterparties in increasingly competitive market

Green hydrogen projects could find it difficult to source additional renewable electricity supply owing to growing competition for power purchase agreements (PPAs). Rather than adding to the investment case for new subsidy-free renewables projects, green hydrogen and other power-to-X projects may struggle to prove creditworthiness in comparison to large corporates and utilities. “Renewables in general are already in a post-subsidy world,” says Rommero Carrillo, business development director at PPA software and advisory firm Pexapark. “In a lot of mature markets, projects are coming off without subsidies and with just PPAs. In more developed markets, we are even seeing merchant assets coming