Strategy and Commercial Advisory | Hydrogen and Renewables | Senior Manager at Baringa Partners
Some high-level reflections from #WHC World Hydrogen Summit this week in Rotterdam where I was with Dharmesh Jadavji A) Project developers are getting clearer on what target business model is emerging for each of their projects. Mandates for grey hydrogen and RFNBOs in transport at EU level, along with emergence of several planned subsidy auctions at state level means that the pathway to bankability is becoming clearer B) Everyone is raising eyebrows at the European Hydrogen Bank (EHB) auction results. These results imply a significant voluntary green premium for some of the winning bids (and many of the losing ones). There are two possible explanations for this: 1) Consumers of grey hydrogen (or grey ammonia) are willing to pay a premium either in expectation of a state mandate aimed at delivering the RED III mandate AND/OR have the ability to pass on premia downstream in the value chain. 2) Subsidies are being stacked on top of local incentives which are allowed under EHB rules for subsidy stacking. C) The EHB results highlight disparity in green hydrogen production costs across Europe. Example: Germany is 2x more expensive to produce green hydrogen than Spain. But German power is not 2x as expensive as Spanish power. This outcome highlights the impact of the EU's RFNBO rules in providing advantage to countries with ample renewable power generation.
Senior Consultant in Power and Low Carbon Solutions | Renewable Power Market | Energy Transition Strategies | Hydrogen and CCUS | MSc Energy Systems - University of Oxford
1moInsightful! 💡