Too big to start?

Hydrogen projects need to be developed at large scale to secure offtake from end-users wary of security of supply—but this throws up hurdles for financing, argues the EBRD

Over the past year, a wave of hydrogen projects has been announced in the wake of growing government support and pressure on industrial companies to decarbonise their operations. But the sheer scale of hydrogen production needed to secure offtake deals presents significant risks to those financing projects, warns Cristian Carraretto, head of sustainable business and infrastructure, energy transition, at the European Bank of Reconstruction and Development (EBRD), in an interview with Hydrogen Economist. “The challenge is, the nature of this market calls for large scale. Producers need to have big pockets and a big appetite for risk as a first, early mover,” Carraretto says. Offtakers require