Low Carbon
Hydrogen
LHA
As the low carbon hydrogen sector is far from commercially viable, the hydrogen market is where the renewables were 10-15 years ago. However, it is not bold to predict that the hydrogen market is set to undergo rapid change and expansion. The wholesale markets for low carbon ( blue and green) hydrogen are still young and under development and will become a global market just like the one for LNG. The future development of a liquid and connected hydrogen market will strongly rely on the development of a demand structure and the associated required network investments. It may go without saying that the development of a market for green hydrogen would accelerate with the broad adoption of carbon pricing. Hydrogen economics and Hydrogen Purchase Agreements will be key for early low- carbon hydrogen projects to obtain financing. Developers and their potential customers are beginning to consider appropriate terms and risk allocation for offtake contracts. With a lot of similarities to PPAs and LNG contracts. As you can read in the case study, we facilitate that with our legal and market expertise.
The Client: A US based startup, organizing an online low caron hydrogen market platform
Users: The management
The Problem: The management of the platform wants to encourage trading on its platform and to enable that was looking for a standard Hydrogen Purchase Agreement (“HPA”) that could be used for trading via its platform for Europe. This HPA is for the procurement of low carbon (blue and green) hydrogen produced in countries outside of the EU and shipped to off-takers based within the EU.
The Utility was looking for a “second opinion” on the updated PPA, including any recommendations about how to best structure the provisions of the Final PPA to best reflect and protect the position and interest of the Utility.
The solution: Kasper Walet designed a standard HPA, based on his knowledge of PPA and LNG standard style contracts and the experience so far in the global market.
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