In Phase 1 the project plans to deliver 100 t/d liquid hydrogen, produced in Scotland from renewable electricity, to the German road transport market at a highly competitive price. Apart from maintaining the existing zero rating for fuel tax, the project does not require any subsidy to be commercially viable.
Project will be derisked technically and commercially via a Front End and Detailed Engineering and Design as well as negotiating liquid hydrogen offtake agreements, power supply agreements and financing prior to Final Investment Decision. The project makes very attractive financial returns to investors without state subsidies.
LH2 Europe’s strategy has 6 key elements:
The key to unlocking the supply chain. LH2 Europe will use industrially proven zero loss liquid hydrogen storage tanks.
Joint venture partners along the supply chain.
Project financing with up to 70% debt component backed by offtake agreements.
Premium target light and heavy duty fuel cell electric vehicle market in Germany.
Off-the-shelf, industrial scale technology for electrolysis and liquefaction.
Delivered liquid hydrogen price is highly competitive in the German market due to project scale and technology.