Exploring the Dynamics of Green Hydrogen Success: 12 Projects Secure Final Investment Decision (FID) Globally, in 2023

Enerdatics has analyzed the key characteristics of the 12 green hydrogen projects that secured final investment decision in 2023. Here are our key findings:

> Long-term hydrogen off-take agreements and Bankable electrolyzer supply contracts are key to investor confidence. 10 of the projects had finalized agreements with equipment suppliers, while 7 had secured long-term off-take contracts

>Pilot projects deployed as springboards for proving feasibility of larger initiatives in the coming years. Of the projects that received FID, two have expansion plans in place, while other developers are considering future initiatives depending on the performance of the pilot assets

> Government support crucial amid wait-and-watch approach adopted by major lenders. Of the projects that received FID, 6 successfully obtained government funding, which accounted for at least 20% of their CAPEX

The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.

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