The JUVE Handbook, Germany’s annual compilation of law firm rankings and topical content, published an article co-authored by NERA Associate Director Dominik Hübler and Taylor Wessing Partner Dr. Andre Lippert. The authors discuss the legal and economic challenges associated with the development of a hydrogen economy in Germany, a European leader in the space, and the implications of the German experience for other countries looking to ramp up their hydrogen sector. The authors discuss the specific challenges associated with different segments of the value chain, including the challenge of creating a regulatory framework for the production and certification of “green” (i.e., renewables-based hydrogen) at competitive prices. See Mr. Hübler’s recent article in the Offshore Wind Journal for more details.

The authors also look at the required returns and regulatory conditions necessary to ensure the investment required to make existing natural gas pipelines “H2 ready” can be delivered by the hydrogen sector. In this section, they draw on recent work led by NERA Managing Director Tomas Haug that included Senior Consultants Dr. Adjmal Sirak and Lorenz Wieshammer. The team applied a novel real options approach to value the additional risks faced by hydrogen infrastructure in the ramp-up phase of the hydrogen economy.

Finally, the authors look at possible support schemes to incentivize the adoption of low-carbon hydrogen-based technologies in energy-intensive industry. In considering possible mechanisms like the “carbon contract for difference,” the authors consider practical challenges based on their experience of advising on similar contracts for difference for renewable generation assets.