Published 13 December 2022
Last updated 9 August 2023 — See all updates
Low Carbon
Hydrogen Agreement: Standard Terms and Conditions
Low Carbon
Hydrogen Agreement: Front End Agreement
Low Carbon
Hydrogen Production Business Model: Heads of Terms
Low Carbon
Hydrogen Production Business Model: full contract drafting of the
payment calculations
Details
These documents provide details of the government’s design for a
low carbon hydrogen business model.
Low Carbon Hydrogen Agreement (published August
2023)
The Low Carbon Hydrogen Agreement is the contract which underpins
the hydrogen production business model.
The business model will provide revenue support to hydrogen
producers to overcome the operating cost gap between low carbon
hydrogen and high carbon fuels. It has been designed to
incentivise investment in low carbon hydrogen production and use,
and in doing so deliver the government’s ambition of up to 10GW
of low carbon hydrogen production capacity by 2030.
The business model will be delivered through a private law
contract (the Low Carbon Hydrogen Agreement) between a government
appointed counterparty and a hydrogen producer.
The Low Carbon Hydrogen Agreement includes the following
documents:
- Low Carbon Hydrogen Agreement: Standard Terms and Conditions
- Low Carbon Hydrogen Agreement: Front End Agreement
Heads of Terms for the Low Carbon Hydrogen Agreement
(published December 2022)
The Heads of Terms for the Low Carbon Hydrogen Agreement sets out
the government’s proposal for the final hydrogen production
business model design. The Heads of Terms reflect the proposed
business model design in December 2022. We have updated some of
the policy proposals in the Low Carbon Hydrogen Agreement,
published August 2023.
This set of documents includes:
- Low Carbon Hydrogen Production Business Model: Heads of Terms
- Low Carbon Hydrogen Production Business Model: full contract
drafting of the payment calculations
- Low Carbon Hydrogen Production Business Model: Heads of Terms
comparison with the indicative Heads of Terms (April 2022)
Consultation: design of a business model for low carbon
hydrogen
For further information see the design of a business model
for low carbon hydrogen consultation documents.
