Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/339525 
Year of Publication: 
2026
Series/Report no.: 
OIES Paper: ET No. 52
Publisher: 
The Oxford Institute for Energy Studies, Oxford
Abstract: 
This paper explores the critical financial challenges in developing and financing hydrogen projects, particularly in the context of their role in achieving global decarbonisation goals. It examines the perspectives of key stakeholders - investors, banks, policymakers, project developers, and off-takers - and identifies the primary risks and corresponding mitigation strategies, with a focus on financing and off-take structures that enhance project bankability. Grounded in project finance theory and current market data, the analysis concludes that while innovative financing models are emerging, the paramount determinant of bankability remains the establishment of robust, long-term off-take contracts that effectively allocate volume and price risk. The study further finds that the role of public policy in bridging the initial cost gap and de-risking investment is indispensable for the sector's scale-up.
Subjects: 
blue' hydrogen
blended finance
CfDs
Clean hydrogen
Energy Transition
green hydrogen
H2Global
hydrogen bankability
hydrogen offtake
NEOM
policy support
PPAs
project finance
SPAs
ISBN: 
978-1-78467-290-4
Document Type: 
Working Paper

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