Contracts for Differences: This instrument has the advantage of providing price certainty to producers, offtakers, and capital markets, and therefore meets two of the program’s three goals. The difficult issues are setting the strike price (i.e., the price above which the subsidy will be provided) and the implicit lack of targeting to specific uses.Fixed Price Support: Compared to contracts for...
Hydrogen Subsidies
Germany has prepared a EUR 3 billion mechanism, and received approval from the European Commission, to support the construction of the Hydrogen Core Network of long-distance transmission pipelines and associated infrastructure. The aid will take the form of state guarantees allowing operators to obtain more favorable loans to cover initial losses. The European Commission has...
Subsidy scheme Chile published a decree establishing an end-user electricity consumption subsidy scheme that will be in place from 2024-26. Such an initiative – targeting vulnerable households – was set out in a bill, approved this half, that unfreezes regulated client power rates, which have remained virtually unchanged for four years. Clients will be able to apply for the subsidy via a...
By Adithya Bhashyam, Associate, Hydrogen, BloombergNEF Subsidies announced for low-carbon hydrogen – a critical input for a decarbonizing world – have quadrupled over the last two years to cross $280 billion, according to the latest update from BloombergNEF. The US stands far ahead of every other country, with the $137 billion expected to flow to eligible projects over the next 10 years making...
By Adithya Bhashyam, Hydrogen, BloombergNEF You know something big is afoot when competing lobby groups take out full-page ads about hydrogen in the New York Times and the Washington Post. Their ads aim to influence guidance issued by the US Internal Revenue Service (IRS) and Treasury defining how clean hydrogen can be produced. This guidance could shape the emissions associated with billions of...
Both the recent pandemic and the Russian war against Ukraine have radically changed the energy expectations in many parts of the world. A recent article by staff at the Rocky Mountain Institute titled “From Deep Crisis, Profound Change” explains that both events have resulted in governments and businesses reconsidering the benefits of renewable energy sources....
Clarity on clean hydrogenOur mission is to deliver engaging and independent business journalism and insight to executives and leaders in the global clean hydrogen industry. We focus on delivering the news and analysis that matters, fearlessly looking beyond the hydrogen hype to provide a balanced view of the market, giving readers the knowledge they need to make critical business decisions. Source link...
The European Commission has given Germany permission to invest around €3 billion in its hydrogen infrastructure to build long-distance pipelines.The commission on Friday said that the positive effects of the government subsidies would be greater than the potential damage that could be caused by distortions of competition.Germany and other countries are investing in hydrogen as a potentially...
Clarity on clean hydrogenOur mission is to deliver engaging and independent business journalism and insight to executives and leaders in the global clean hydrogen industry. We focus on delivering the news and analysis that matters, fearlessly looking beyond the hydrogen hype to provide a balanced view of the market, giving readers the knowledge they need to make critical business decisions. Source link...
PHILADELPHIA—President Joe Biden traveled to a marine terminal here on Friday to announce billions in funding for new clean hydrogen projects that he said would help the nation meet its climate goals while generating thousands of new high-quality jobs. Surrounded by lines of shipping containers on a dock along the Delaware River, Biden positioned the program as a critical piece of his economic...