Appraising Green Hydrogen Projects: Business Case and Financial Modelling

1 day duration

Forvis Mazars green hydrogen training programme is designed to equip you with the required skill sets to structure your green hydrogen project. The course provides an overview and key considerations of green hydrogen business case, key regulatory requirements and supporting financial modelling.

Key takeaways from the course

  • Part 1: The hydrogen business case development and regulatory overview will impart an understanding of green hydrogen project development and critical factors to consider before delving into the financial analysis; and,
  • Part 2: The financial modelling techniques will guide through the relevant techniques to transform the project assumptions into tangible financial outputs, empowering sensitivity analysis and the ability to strategically plan various scenarios.

Is this course for you?

This course is suitable for anyone who needs to develop a hydrogen business case for appraisal of investment options, build, review and analyse hydrogen financial models and gain knowledge on the commercial aspects of the sector for investment considerations. Typical attendees include Industry Analysts, Business Developers, Project Managers and Senior Business Managers/Directors.

Course prerequisites

While no sector-based knowledge is strictly required to take the course, it is however desirable that the participants have some basic understanding of the sector and good Excel skills. Upon registration, you are entitled to our introductory material on Excel functions which will give you the confidence and skills to fully absorb the contents of this course.

Upcoming

Course Agenda

Module 1: Developing your business case – key considerations and regulatory aspects

Learning objectives

  • Role of green Hydrogen in accelerating the global transition to a low-carbon Economy;
  • High-level review of the regulatory environment and government support (UK, EU and US);
  • UK Regulatory environment and government support mechanisms: hydrogen business model (HAR 1 & 2; future of HAR 3); hydrogen transportation and storage proposed models; CCUS – policies and business model, commercial framework​;
  • CfD for hydrogen business model – overview
  • Green Hydrogen development outside of UK, EU and US – key trends;
  • Strategic considerations when making decisions about the development of hydrogen projects (economic environment, alignment with the company’s strategy, location – hydrogen hubs & clusters, stakeholder relationships, project structures);
  • Understanding the green Hydrogen market (global commodity, supply and demand);
  • Cost assessment for hydrogen projects (key elements of production cost and transportation cost);
  • Delivering your projects (operational and contract risk management, governance and reporting); Discussion on the use of hydrogen production as a form of energy storage.

Module 2: Developing your business case - modelling

Learning objective

  • Identify & discuss the key technical and financial concepts relevant to modelling for hydrogen projects;
  • Work through techniques used in building a best practice and well-structured model for green hydrogen (cash-flow model), considering:
    • Integration of generation profiles driven from underlying renewable assets such as solar and wind, possibly backed with energy storage;
    • Incorporate inputs such as power consumption, efficiency, yield and production levels to forecast production volumes and revenues; and,
    • Effectively modelling the capital and operating costs for the production & storage of green hydrogen.
  • Understand the relevance of the Levelized Cost of Hydrogen (LCOH) and how to effectively incorporate it within your models:
    • Appreciate the definition and significance of LCOH as a metric for economic evaluation;
    • Develop a best practice modelling approach to LCOH within the financial model; and,
    • Utilised LCOH to assess and estimate sale prices.

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