Related Articles
Investors want long-term certainty
Forward article link
Share PDF with colleagues

Hydrogen investors demand security of offtake deals

Long-term contracts will be needed to mitigate risk as investors assess bankability of multiple clean hydrogen production projects

Financiers are queuing up to look at clean hydrogen production proposals but will be reluctant to commit capital unless projects are underpinned by long-term offtake deals and certifiable sources of renewable power, senior financial players said this week. Offtake agreements of 20 years or longer are likely to be the norm for projects in the early stages of the sector’s development, as providers of debt and equity investment will demand secure revenue streams from hydrogen production. “At this stage of the hydrogen life cycle, absent any real [hydrogen] market or reference, projects must be underpinned by one very large, creditworthy offtaker to stand behind some of the risk,” Andrew Doyle

Comments

Comments

{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}
Also in this section
Ineos to invest €2bn in European green hydrogen plants
18 October 2021
Ten-year plan includes 100MW electrolyser at Cologne complex in Germany aimed at green ammonia production
ITM Power to raise finance for expansion
15 October 2021
Firm looks to raise a total of £250mn to build two further factories to meet demand
Octopus and RES to invest £3bn in UK green hydrogen
14 October 2021
Partnership is evaluating several sites for construction of green hydrogen production and is in discussion with offtakers
Sign Up For Our Newsletter
Project Data
Maps
PE Store
Social Links
Social Feeds
Featured Video