Saudi Arabia - joining the dots

A series of blog entries exploring Saudi Arabia's role in the oil markets with a brief look at the history of the royal family and politics that dictate and influence the Kingdom's oil policy

Showing posts with label UK. Show all posts
Showing posts with label UK. Show all posts

Friday, 26 April 2024

The Problem with the UK Hydrogen CFD

 The principle of a Contract-for-Difference or CFD is to provide pricing stability (or at least visibility) on the hydrogen being produced and sold. The government is typically the counterparty on CFDs.The producer of the electricity or hydrogen negotiates and agrees a "strike price" with the government under the CFD. When the producer sells hydrogen below this agreed strike price, the government will top it up to the strike price. Conversely...