Low-carbon hydrogen is expected to play a key role in realizing net-zero and sustainable development plans.Nonetheless,there is a gap between the cost of producing low-carbon hydrogen and its potential users’willingn...Low-carbon hydrogen is expected to play a key role in realizing net-zero and sustainable development plans.Nonetheless,there is a gap between the cost of producing low-carbon hydrogen and its potential users’willingness to pay for such hydrogen.To implement support for the development of the industry,we propose using low-carbon hydrogen long-term agreements allocated through auction mechanisms.The objectives are 2-fold:(i)matching supply and demand volumes considering the time horizon and geographical delivery point specification and(ii)allocating the subsidy.This perspective article innovates by proposing a reference price indexed to liquid to natural-gas prices,which is the main product that low-carbon hydrogen aims to substitute.The premium and the production cost are defined through a double-sided auction.This aims to minimize the public policy funds required to incentivize the low-carbon hydrogen market while facilitating long-term agreements and mitigating price risks that may hinder investment.展开更多
文摘Low-carbon hydrogen is expected to play a key role in realizing net-zero and sustainable development plans.Nonetheless,there is a gap between the cost of producing low-carbon hydrogen and its potential users’willingness to pay for such hydrogen.To implement support for the development of the industry,we propose using low-carbon hydrogen long-term agreements allocated through auction mechanisms.The objectives are 2-fold:(i)matching supply and demand volumes considering the time horizon and geographical delivery point specification and(ii)allocating the subsidy.This perspective article innovates by proposing a reference price indexed to liquid to natural-gas prices,which is the main product that low-carbon hydrogen aims to substitute.The premium and the production cost are defined through a double-sided auction.This aims to minimize the public policy funds required to incentivize the low-carbon hydrogen market while facilitating long-term agreements and mitigating price risks that may hinder investment.
