Hydrogen projects are risky
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
Also in this section
21 January 2025
The GEI database is tracking nearly 680 active hydrogen projects in Western Europe, with the region accounting for nearly half of the total market share in active hydrogen projects globally
21 January 2025
The new president must put his cards on the table and tell the American people, and the world, if the US is formally abandoning the energy transition
20 January 2025
China and India are leading the region in terms of electrolyser development, while Australia accounts for nearly half of Asia’s active hydrogen projects
17 January 2025
Bank’s UK arm signs first deal to finance a green hydrogen developer, but cost and offtake pressures mean the sector remains too risky for many lenders
