Contracts for Difference (CfDs) for hydrogen projects

How will emerging CfD schemes affect the pricing of hydrogen offtake agreements? Hydrogen CfDs are becoming increasingly relevant in the EU (both at EU level and in Member States). CfDs have been considered as one of the possible design options for the European Hydrogen Bank and can be considered for a competitive bidding process at EU level at a later stage (especially when a reference clean hydrogen price is determined). According to the reports, CfDs are also discussed by the European Commission for a scheme to support the purchase of green hydrogen.

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