Project details
Project timeline
CURRENT STATUS:2014
Start of project development
Project finalization
2035
KEY SUCCESS FACTORS
PROJECT DEVELOPMENT PHASE
- Business model/business case development
The most remarkable outcome of HYSouthMarmara will be the creation of a sustainable new green H2 business model which shows “the production, storage and utilization of H2 in all states of matter: gas(H2), liquid(CH3OH/NH3) and solid (NaBH4).
- Technological readiness/technological performance (e.g. availability, efficiency, duration/lifetime)
There is a doubt about the efficiency of Sodium BoroHyride use as one of the H2 storage mathods. But they miss a critical point that this boron chemical is superior to other available storage methods in terms of "levelized cost of storage".
- Regulatory provisions
Not a big deal for our valley project.
- Permitting and authorization procedures
Not a big deal for our valley project.
- Political backing and buy-in
- Funding
The companies in our consortium is ready for the green investments of H2 Valley Project and they are financially strong but the consortium still needs a tailor-made goverment incentive.
- Experienced staff
- Local public acceptance
South Marmara Development Agency has been working on R.Energy and H2 economy for a long time and conducting public awareness activities. As the leading region in renewable installed capacity in Turkey, South Marmara has a high local public acceptance.
- Project's business case
- Stakeholder cooperation
- Risk sharing mechanisms between project partners
- Project's governance model
COMMERCIAL AND FINANCING PHASE
- Applying for public subsidy/grant schemes
- Securing private investors
- Securing public financial support (subsidy/grant)
App. 8 million EUR EU Grant is secured but we still need more financial support to fully realize the H2 Valley Project. Particularly we need an public incentive to close the cost gap between green hydrogen and grey hydrogen/NG.
- Building a financial model
It is not totally structured. Besides EU Grant we need a tailor-made government incentive to build a perfect financial model.
- Preparing documentation for a due diligence process
- Putting a de-risking framework in place
- Securing customer commitments to de-risk the financial model
The customer is ready to pay a little bit higher price for green hydrogen but the price gap between gray and green should be reasonable. So to give a long-term commitments they are waiting for a government incentive.