Strategic Off-Take Strategy for Green Hydrogen Plant in Southern Europe
Key Ideas
- FTI Consulting assisted a green hydrogen plant developer in southern Europe to secure off-take agreements, enabling eligibility for subsidies from the European Hydrogen Bank.
- The strategy involved targeting promising off-takers efficiently, developing innovative term sheets, and analyzing risks and benchmarking against industry standards.
- Off-taker analysis focused on willingness-to-pay, time to first consumption, and distance from the production plant to identify and rank potential off-takers.
- Two versions of a term sheet were drafted, offering the client options between 'more risk and higher price' or 'less risk and lower price' for their green hydrogen product.
FTI Consulting partnered with a green hydrogen plant developer in southern Europe to establish an accelerated go-to-market strategy. The developer aimed to secure off-take agreements to qualify for subsidies from the European Hydrogen Bank. FTI Consulting facilitated the direct targeting of potential off-takers likely to purchase green hydrogen promptly, value the product with a green premium, and benefit from cost-efficient proximity to the production plant. An innovative term sheet was crafted to address the unique risks of the green hydrogen market and provide the client with flexibility in marketing their product. The partnership involved systematic off-taker analysis to identify and rank potential off-takers based on willingness-to-pay, time to consumption, and proximity. Risk identification, allocation, and benchmarking were conducted to understand and manage risks across the supply chain effectively. The final deliverable included two versions of a term sheet, offering the client a choice between higher risk/higher price or lower risk/lower price options for their green hydrogen product.