Letter from London: Hydrogen’s risk allocation puzzle

Finding a way to efficiently share risk between developers, offtakers and financiers is crucial to unlocking investment in green hydrogen projects, according to speakers at the FT Hydrogen Summit in London

Commodities trader Trafigura expects to make FID on a 20MW green hydrogen facility at Milford Haven in South Wales very shortly, an all-too rare example of a project making it all the way from draft proposal to bankable asset. So what are the ingredients needed to de-risk a project and make it happen? The Milford Haven project has “known bankable customers”, an existing grid connection, access to renewable power and support from the UK government, Margaux Moore, head of energy transition research and venture investment for Trafigura, told the FT Hydrogen Summit in London. Statistically, Milford Haven is an outlier in the green hydrogen sector, where less than 10% of announced projects have m