Granted the first hydrogen CFD – Watt?

No one knows

Paul Homewood

https://register.lowcarbonantracts.uk/?search= hydrogen

The first three CFDs have been announced as the first round of hydrogen distribution.

All prices are available for 2022, so at current prices from £213 to £242/MWh. Like other CFDs, hydrogen producers will provide guaranteed index-related prices.

But the most important thing is the cost of transporting hydrogen to a location that can be used or stored. LCCC provides an estimated cost for this – for example, in Cromarty, it is £24.37/MW.

Therefore, the total cost of total hydrogen will be as high as £266/MW. In comparison, the wholesale price of natural gas is about £34/MW.

The cost of this subsidy is expected to be added to the gas bill.

The first round of hydrogen distribution provided contracts for 11 producers with a total capacity of 125 MW and an annual output of about 500 gwh, accounting for only 0.07% of the UK's total natural gas consumption.

Subsidies vary with changes in gas market prices, but the current level is about £120 million per year.

These three have a capacity of 31.8 MW

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