Letter on hydrogen: Caveat emptor
The use of innovative risk management techniques used in other commodity markets can help overcome the impasse between producers and offtakers that threatens to stall the hydrogen sector’s growth
Just 4% of the low-carbon hydrogen production projects announced globally have reached FID, according to the IEA’s latest review of the sector. That number will alarm policymakers around the world amid a growing realisation that hefty supply-side subsidies alone are not nearly enough to unlock the investment needed to meet ambitious 2030 production capacity targets. The IEA urges governments to match their generous supply-side subsidies with more support for the demand side of the market. The argument is that this will help bring long-term offtakers to the table, in turn making supply projects more bankable. Concerns over the lack of willing buyers have dominated recent debate in the i

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