A taxonomy of support mechanisms for the low-carbon hydrogen supply chain

P. Mastropietro, P. Rodilla

International Journal of Hydrogen Energy Vol. 105, pp. 169 - 178

Summary:

Although the actual scope of the hydrogen sector is still uncertain, many support mechanisms for low-carbon hydrogen have been introduced at the global level in recent years, with billions of dollars of funding soon to be disbursed. This article presents a comprehensive taxonomy of these support schemes, based on a global review of international experience covering more than 20 jurisdictions in different regions of the world. The majority of hydrogen support mechanisms introduced so far target production, consumption and cross-chain projects (either through risk-hedging contracts or direct grants), while there is limited experience with support for hydrogen transport and storage. The article identifies the main design elements of hydrogen support mechanisms, a classification that can be used in future works to critically assess alternative designs. The article also presents some initial trends in international experience, shedding light on a topic that is dramatically underrepresented in the academic literature.

Spanish layman's summary:

Este artículo presenta una clasificación detallada de los mecanismos de apoyo a la cadena de suministro de hidrógeno bajo en carbono. Esta investigación permite identificar algunas tendencias en ámbito internacional y puede guiar a los reguladores en el diseño de la siguiente generación de mecanismos de apoyo.

English layman's summary:

This article presents a comprehensive classification of support mechanisms for the low-carbon hydrogen supply chain. This research allows to identify international trends and can guide regulators in the design of the next generation of support schemes.

Keywords: Hydrogen economy; Hydrogen subsidies; Support mechanism; Risk-hedging; Direct grant; Fixed premium; Variable premium

JCR Impact Factor and WoS quartile: 8,100 - Q1 (2023)

DOI reference: https://doi.org/10.1016/j.ijhydene.2025.01.275

Published on paper: March 2025.

Published on-line: January 2025.

Citation:
P. Mastropietro, P. Rodilla, A taxonomy of support mechanisms for the low-carbon hydrogen supply chain. International Journal of Hydrogen Energy. Vol. 105, pp. 169 - 178, March 2025. [Online: January 2025]