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Associate Fellow and Energy Transitions Fellow | CSIS Energy Security and Climate Change Program

The emerging #hydrogen sector has been plagued by market uncertainty, with only about 10% of project announcements in the US having achieved final investment decisions (FID) as of last June. This is in large part due to hydrogen producers struggling to secure long-term, credit-worthy offtake contracts, a prerequisite for projects attaining FIDs. To address this issue, DOE announced yesterday its selection of a consortium to manage a demand-side mechanism for its Regional Clean Hydrogen Hubs (H2Hubs) program. The consortium will leverage $1 billion in funding to address market uncertainty within the H2Hubs. Last year, I covered how this initiative could catalyze H2Hubs development in a piece for the CSIS Energy Security and Climate Change Program. Check it out below if you'd like to learn more! https://lnkd.in/djAu6MCe

Today, the DOE Office of Clean Energy Demonstrations announced the selection of a consortium to help accelerate commercial liftoff of the clean hydrogen economy. EFI Foundation, S&P Global and ICE Markets will help design and implement demand-side support mechanisms for unlocking the market potential of the Regional Clean Hydrogen Hubs. Over the next six to nine months, U.S. Department of Energy (DOE) will work with the consortium and the H2Hubs to design robust demand-side support and other “demand pull” measures that will bridge the gap between producers and buyers of clean hydrogen. Learn more at https://lnkd.in/eX4G8hiR

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