Blue Hydrogen Production Plan
Fin-Wiser delivered a project finance model for a blue hydrogen production plan located in the United Kingdom.
The objective of the model was to calculate the strike price for blue hydrogen based on the “Low Carbon Hydrogen Agreement” (LCHA) issued by the Government of the UK which allows the shareholders to meet their target return.
Project Timeline
Comprehensive project level / SPV level financial model for blue hydrogen plant with 3.5 years of construction and 25 years of operations period (15 years with Subisy Scheme and 10 years of non subsidised operations).
Commercial Inclusions
Designed detailed revenue and subsidy calculations based on the Low Carbon Hydrogen Aggrement (LCHA) issued by UK government as part of their Net Zero Emissiontarget by 2050.
Sensitivity Anlaysis
Multiple sensitivity analysis on Capex overun, strike price, project timeline & delays, technical parameters like Gas Utilisationand offtake scenarios as part of risk identification and recognition.
LCHA Summary
Created management presentation including multiple examples on CfD (Contract for difference) scheme per LCHA. This included the impact of changing Natural Gas Price on offtakers and subsidy offered under LCHA.