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CfD-style backing ‘may unleash UK hydrogen’
New report says split support mechanism will incentivise deployment of 100MW-plus low carbon projects.
The work focused on near term investments that will incentivise low carbon hydrogen production from project of over 100MW.
“Indexing support payments to the input fuel price should be considered further,” added thestudy.
“It could reduce investor cost of capital, though at the same time it would transfer additional risks to taxpayers and bill payers. Indexing may be particularly helpful if a revenue stabilisation approach is taken, to avoid placing excessive input cost risk on investors.”
CfD-style backing ‘may unleash UK hydrogen’
New report says split support mechanism will incentivise deployment of 100MW-plus low carbon projects
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