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OFFTAKERS
from HIL Issue 09
TAKE-OR-PAY CONTRACTS: ENABLING OFF-TAKERS FOR GREEN HYDROGEN
Establishing off-takers for hydrogen is one of the current bottlenecks hindering the development of hydrogen projects globally, notably in the UK. With recent reports from the IEA stating less than 10 per cent of projects reach final investment decisions, what can the hydrogen sector learn from the LNG market?
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With the LNG market being wellestablished globally, it is natural to compare the embryonic hydrogen offtake market when looking at how to secure the hydrogen economy moving forwards.
owner of the electrolyser to convert the water into hydrogen and oxygen.
In contrast, the sale-and-purchase model requires the project to either produce or purchase the upstream gas and is responsible across the supply chain from transporting it to the facility liquefying the gas and selling it as an LNG.
Putting this in green hydrogen terms, a project developer would buy electricity and water. As with natural gas, the electrolyser facility owner may procure
