Industry experts have pointed to rigid funding structures, long-term offtake expectations and investor risk aversion as major barriers to clean hydrogen project FID, calling instead for more flexible, dynamic approaches to project financing at H2 View’s latest webinar.
Just 7% of clean hydrogen projects had reached FID by 2023, according to the Hydrogen Council – a rate far too low to meet climate goals.
And when asked, many developers point to offtake agreements and buyer hesitancy as key challenges.
Speaking on the webinar, Adam Forsyth, Head of Research at Longspur Capital, suggested that’s because much of the focus so far has been on high-volume, long-term contracts, which may not play into the benefits of particularly green hydrogen.
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