Investors want long-term certainty
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,
Also in this section
1 April 2026
Multiple projects have been scrapped and valuations have nosedived, but the IEA says hydrogen is no passing fad
25 March 2026
The Middle East energy shock has highlighted the value of France’s unique potential to deploy nuclear-powered electrolysers
18 March 2026
The second fossil-fuel price shock in four years can be a much-needed catalyst for investment in the sector
9 March 2026
Hydrogen has not stalled in the UK because the technology does not work. The problem is that the system around it does not yet move at the speed required
