The Importance of Off-Take Agreements and Shipping/Aviation in the Hydrogen Space

Off-take agreements and the role of shipping and aviation as customers and sources of demand are key factors to watch in the hydrogen space in 2024. The potential for off-take agreements to drive hydrogen project financing in the US is a critical area for growth. However, delays in the release of the US IRA guideline on the hydrogen tax credit have hindered progress. Additionally, regulations and mandates in the EU for decarbonization have created demand for synthetic fuel and clean hydrogen in the shipping and aviation sectors. Initiatives such as the Refuel EU Aviation and EU Maritime Initiatives are driving the need for green hydrogen. Off-take agreements between companies like Air France, Kom, Delta, and DG-Fuels in the aviation sector, as well as MERS and Goldwind in the shipping sector, showcase the increasing demand for hydrogen in these industries.