Join our webinar where we will discuss design criteria for contract-for-differences and explore two practical examples from the EU and the UK on how contract-for-differences can be implemented to foster low-carbon hydrogen projects.
Production costs of low-carbon hydrogen and its’ derivatives (such as e.g. ammonia or kerosene) exceed in many cases the revenues that can be attained on the market for these products – at least if sustainable products need to compete directly with fossil-fuel based alternatives.
One measure to monetise the “green value” of low-carbon hydrogen and thereby to balance costs and revenues of low-carbon hydrogen projects, is to implement contract-for-differences. A contract-for-difference (CfD) compensates for the difference between a market price and a reference price. The latter can correspond to the production costs of low-carbon hydrogen.