Hydrogen Production and Storage ModelFree Financial Model Download
Model hydrogen production economics and project IRR by forecasting facility utilization, feedstock and power costs, and hydrogen offtake revenues. Built for electrolysis and SMR projects, not a generic energy model.
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About this model
This project finance model determines the viability of a green hydrogen production facility (100 MW electrolyser) by forecasting levelised cost of hydrogen, debt service coverage, and equity IRR under various power pricing and offtake scenarios. Answer: what hydrogen price ($/kg) is required to achieve 1.40× DSCR and 8–12% equity IRR, and how does production tax credit (US IRA, EU subsidies) improve deal economics?
The workbook models hydrogen production: electrolyser capacity × capacity factor / efficiency (kWh/kg) = annual production volume. Primary costs: power (£45/MWh blended PPA+grid), water (£2/m³), fixed O&M (2.5% of capex/year), stack replacement every 7–10 years. Revenue: hydrogen sales (£6.50/kg base case), subsidies (£0–£3.00/kg US IRA production tax credit), oxygen and heat by-products. Capex £1,500/kW for full EPC + balance of plant; stack replacement £450/kW (~30% of initial capex). Debt: 65% of total project cost at 6.5% rate, 15-year tenor. Target DSCR 1.40x minimum.
Used by renewable energy developers, infrastructure funds evaluating hydrogen as energy transition play, project finance lenders sizing non-recourse debt, and industrial offtakers (steel, ammonia, refining) securing hydrogen supply. The model reveals sensitivity to power costs (60–80% of LCOH): cheap renewable PPA under £30/MWh makes £4–5/kg LCOH achievable; grid power at £80/MWh produces £7–8/kg LCOH. Stack degradation (1.5% per 10k operating hours) and efficiency erosion compound over 20-year project life. Benchmarks: Nel ASA, Plug Power, Thyssenkrupp Nucera—all targeting £2–4/kg LCOH at scale; current generation £5–8/kg pre-subsidy.
Recolor to your brand.
Formatted to IB standards.
Named theme colors repaint the whole workbook in one click, on top of an investment-banking structure with blue inputs, black formulas, and green cross-sheet links.
- Brand-ready
- Institutional grade
- Fully auditable
What's included
- Electrolyzer or steam methane reformer capex and installation costs
- Electricity costs for electrolysis or natural gas for SMR
- Production capacity, utilization rate, and hydrogen output
- Hydrogen storage and distribution costs
- Offtake agreements and hydrogen pricing in dollars per kilogram
Production technology cost comparison
Model economics for alkaline, PEM, and SOEC electrolyzers versus SMR to compare CAPEX, OPEX, and levelized cost of hydrogen by technology.
Power and feedstock price sensitivity
Run scenarios for electricity and natural gas prices, the two dominant cost drivers, to assess project risk and breakeven thresholds.
Offtake agreement and pricing structures
Model fixed, spot, and corridor offtake pricing and incorporate fuel cell, ammonia synthesis, and industrial customer demand scenarios.
Frequently asked
What is a hydrogen production financial model?+
A project finance model that forecasts hydrogen production facility capex, operating costs, utilization, and offtake revenue to calculate project IRR and LCOH.
What is LCOH and how is it calculated?+
LCOH is the levelized cost of hydrogen: total NPV of capex plus opex divided by total hydrogen produced. It measures long-term average production cost per kilogram.
What electricity cost is needed for green hydrogen competitiveness?+
Electrolysis requires $20-40 per MWh electricity for a competitive LCOH. At typical U.S. rates of $40-60 per MWh, hydrogen costs $3-5 per kilogram.
How do I model offtake agreement pricing?+
Typical offtake agreements include a fixed minimum price of $2-4 per kilogram plus escalators tied to natural gas, electricity, or inflation. Model both take-or-pay and usage-based structures.
Who uses hydrogen production models?+
Energy engineers, green hydrogen investors, industrial gas producers, and project financiers use them for project development, investment decisions, and procurement strategy.
Alex Tapio
Founder of Finamodel • Professional Financial Modeller • Ex-Deloitte
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