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Client Alerts
Published by Energy Intelligence
May 8, 2024 • 1-minute read
By 2050, the cost of producing low-carbon hydrogen is expected to be five times higher in the most expensive regions than the least expensive regions, according to the Hydrogen Council. This significant cost gap will require certain countries to import cheaper, low-carbon hydrogen to satisfy their demand, leading to established low-carbon hydrogen trade routes. In the near-term, demand will focus heavily on meeting mandated low-carbon hydrogen targets and ensuring subsidy support. Offtakers will be focused on ensuring projects meet the specifications of their domestic market.
Taking note of where this key demand will emerge, and the specifications of low-carbon hydrogen within each region, will be pivotal to developing a project that is able to secure buyers for the offtake.
In this article published by Energy Intelligence, Andrew Nealon, Alex Lee, and Ellen Swarbrick* will examine the key drivers of low-carbon hydrogen demand, identify potential challenges posed by specifications that vary between regions and highlight key considerations for project developers’ offtake strategies.
Read the full article here.
*Ellen Swarbrick is a trainee solicitor in the London office.
This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.
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