Valuation of Hydrogen Offtake Market
Our client is a key player in renewable energy activities with sound development ambitions in the emerging market of sustainable hydrogen in Europe. Operating across multiple entities and countries, our client needed a thorough evaluation on the future hydrogen offtake market and identify key target segments for business development and investment purposes.
We conducted a strategic analysis, delivering a tailored valuation and simulation model for sizing sustainable hydrogen offtake markets in Northwest Europe. However generic, we developed our framework analyzing in particular the road and maritime mobility sectors.
Objective
Provide insight into the willingness to pay among potential off takers in road and maritime markets for sustainable hydrogen in comparison with its alternatives (BEV, e-fuels, conventional fuels). Understand the drivers, blockers, uncertainties, and risks in sustainable hydrogen adoption for strategic decision-making and identify niche applications where hydrogen outperforms competitors. But most importantly, providing a structured and replicable approach for future offtake markets ensuring adaptability and enduring value.
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Methodology
Thorough Market Analysis
- Conducted an extensive analysis of the sustainable hydrogen market, with a specific focus on understanding the varied segments of mobility offtakers
- Explored alternatives such as battery electric vehicles (BEV), conventional fuels & e-fuels to provide a comprehensive comparative context.
Methodology
Tailored Total of cost of Ownership (TCO) Model
- Developed a customized TCO model, intricately tailored to the sustainable hydrogen mobility offtake segment.
- Enhanced TCO model by integrating a Fitness Framework providing a holistic view of hydrogen technology’s relative positioning and evolution over time.
- Clear guidelines for seamless utilization of the TCO model and Fitness Framework, ensuring user-friendliness & accessibility.
Methodology
Combined Qualitative and Quantitative Analysis
- Applied a dual approach, combining qualitative and quantitative analyses to discern the positioning of hydrogen in both the road and maritime demand sectors.
- Evaluated qualitative aspects such as hydrogen infrastructure development, technology availability, and user comfort alongside quantitative data to derive a comprehensive understanding.
- Positioned hydrogen within the context of customer preferences and industry dynamics, ensuring a well-rounded perspective for strategic decision-making.
Results
Through our custom-made TCO model we provided a strong basis to identify the niches for hydrogen potential in the road and maritime offtake markets. Additionally, this comprehensive model is designed with adaptability to address any offtake, irrespective of industry segment or country our client might want to explore in the future.
“Looking forward, we remain dedicated to driving innovation and delivering transformative solutions for our clients, helping them to shape the future of the European energy landscape..”
irex Consulting played a crucial role as a strategic partner working with our client to align their strategic roadmap for hydrogen market development based on a profound understanding of willingness to pay. Moreover, the added dimension of the fitness framework positions our client strategically for the dynamic evolution of hydrogen technology; the adaptable TCO model brings agility to our client to apply this strategic insight to any future offtake segment.
irex Consulting > Energy > Valuation of Hydrogen Offtake Market
