Renewable Hydrogen Project Risks

Overview of risks along the entire value chain of green hydrogen projects using the Risk Assessment Matrix (RAM) framework.

Publication Date: 02/2024

The report examines the risks associated with green hydrogen projects from the perspective of project developers along the entire value chain. It identifies 52 single risks, grouped into 13 risk categories.

The report compares three different cases representing prototypical emerging projects in different locations: large-scale projects in the EU + EFTA, large-scale projects in non-EU countries, and smaller electrolyser sites in Germany.

In addition to their geographical scope, these projects differ in terms of electrolyser size,  and the prevailing renewable energy potential and political and macro-economic environment.

 Using the Risk Assessment Matrix (RAM) framework, the report evaluates and ranks the  risks . This involves a qualitative assessment of the 52 risks for each of the three test cases,. The analysis reveals diverse risk profiles based on location and scale, and provides insights into  the severity and likelihood of factors or events that could threaten the projects’ success along the value chain.

Furthermore, the report presents risk management and mitigation strategies for all identified risk categories. It also provides an outlook on the potential development of mitigation strategies for green hydrogen projects based on options for renewable energy projects.