Hydrogen Americas Summit Day 2: Refineries and offtake agreements in financing spotlight

The relationship between refineries and offtake agreements was a key discussion point on the second day of the Hydrogen Americas Summit as financing matters took centre stage.

Jigar Shah, Director, Loan Programs Office at the US Department of Energy, said the ecosystem “has to play the game” after President Biden committed the US to decarbonising its electricity sector by 2035 and economy by 2050.

“I don’t see a single refinery signing a long-term offtake,” he said. “No one is suggesting the refineries are going to go out of business next week – you’re talking about a hybrid system we’re going to be living in for a very long time – but when you ask where the offtakes are coming from, it’s European utility companies out of the Port of Corpus Christi.

“The notion that we’re going to build an entire industry here, and all of these big players are going ‘this is great, I’m so glad I’m here but I am not going to sign an offtake agreement’ – that’s why it’s going slow. We’ll see if they get there.”

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