Optimizing Off-Take Strategies for a Green Hydrogen Plant Developer in Southern Europe
Key Ideas
- FTI Consulting streamlined off-take agreements, targeting ideal green hydrogen buyers and offering innovative term sheets.
- Their strategic analysis included identifying off-taker sites, risk assessment, and developing customized risk allocation strategies.
- The consultancy presented the client with two options: a high-risk, high-price product or a low-risk, lower-price product for the green hydrogen market.
- Efforts were made to meet eligibility requirements for subsidies from the European Hydrogen Bank by securing off-take contracts.
FTI Consulting collaborated with a green hydrogen plant developer in southern Europe to enhance their go-to-market strategy. The primary focus was on securing off-take agreements to qualify for subsidies from the European Hydrogen Bank. By creating a shortlist of potential off-takers, the client was able to target buyers likely to purchase green hydrogen in a short timeframe and attach a premium to it. FTI Consulting also developed an innovative term sheet that addressed the unique risks present in the green hydrogen market, providing the client with options to offer high-risk, high-price or low-risk, lower-price products. The consultancy conducted in-depth off-taker analysis, assessing factors like willingness-to-pay, time to first consumption, and proximity to the production plant. They also identified and allocated risks throughout the supply chain based on industry benchmarks and the client's preferences. This comprehensive approach aimed to optimize the client's off-take strategies and ensure a competitive position in the evolving green hydrogen market.
Topics
Europe
Market Analysis
Risk Assessment
Subsidies
Consulting
Off-take Agreements
Term Sheet Development
Client Strategy
Green Premium
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