India urged to adopt Japan’s CFD model to unlock green hydrogen
India should adopt Japan’s contracts-for-difference (CFD) model to help make green hydrogen projects bankable and accelerate final investment decisions, according to Amrit Singh Deo, Senior Managing Director at FDI Consulting and advisor to the India Hydrogen Alliance (IH2A). Speaking on a gasworld/H2 View webinar, he explained that the bottleneck in projects reaching FID is not due to lack of demand, but bankability. “The answer is simple, it’s offtake – guaranteed [long-term] offtake,” he said. “Without offtake guarantees, no project is going to be bankable.” IH2A has recommended that India’s government adopt Japan’s CFD framework to overcome this financing barrier. CFDs are long-term contracts where a public agency compensates producers when market prices fall below fixed strike price, providing guaranteed revenue. “We’ve asked the Government of India to actually replicate the Japanese CFD model,” he said.… Read More »India urged to adopt Japan’s CFD model to unlock green hydrogen