Demand-side RFP for Independent Entity

Description

DOE is exploring entering into one or multiple agreements with independent, not-for-profit U.S. entities to assist in the de-risking of clean hydrogen through demand certainty or other means. DOE envisions that these measures would accelerate commercialization of clean hydrogen by providing medium-term revenue certainty to projects affiliated with DOE-selected Regional Clean Hydrogen Hubs. Demand-side support measures represent a potential tool to achieve DOE’s authorization to accelerate commercialization of, and demonstrate the production, processing, delivery, storage, and end-use of, clean hydrogen by providing predictability in the commercial market for early deployments. Demand-side support measures have accelerated commercial scale-up of technologies in clean energy and for other critical products and services, both in the United States and abroad. These measures address a basic issue in scaling up clean energy technology—deployment drives cost reductions, but early deployment depends on demonstrated demand, which is hard to secure while costs are still high, and markets are still nascent. Demand-side measures also address a fundamental mismatch in some markets between producers, who need long-term certainty of high-volume demand in order to secure financing to build a project, and buyers, who often prefer to buy on a short-term basis at more modest volumes, especially for products that have yet to be produced at scale and expected to see cost decreases, like clean hydrogen. DOE is interested in selecting one or more independent (i.e., non-government), U.S.-based, not-for-profit entities to support and execute clean hydrogen demand-side support mechanisms. Respondents to this solicitation may represent an existing or to-be-established entity, as long as the proposed entity would be formally established ahead of the Design Phase activities described below. The selected entity or entities would execute demand-side programs and other support measures designed and funded, in part, by DOE to create demand certainty for clean hydrogen projects and facilitate market formation. The selected entity or entities could be a single national entity, several regional entities, or several entities responsible for different phases (design vs. execution). Potential activities for an independent not-for-profit U.S. entity include, but are not limited to: Applying experience in commodity markets, project finance, and commercial contracting to advise DOE on the design of demand-side measures to support projects affiliated with DOE’s Regional Clean Hydrogen Hubs; Executing a DOE-designed and funded demand-side mechanism to support projects affiliated with DOE’s Regional Clean Hydrogen Hubs, including accepting and distributing DOE funds to selected projects; Implementing a competitive process designed by DOE for selection of projects or companies for demand-side support; Executing and managing financial agreements with selected recipients of demand-side support; and Engaging with clean energy developers, investors, Government partners, academic institutions, community groups, labor, non-traditional partners, and other stakeholders to inform and support DOE demand-side activities to support commercial liftoff for clean hydrogen. All submissions must be made through the OCED Funding Opportunity Exchange. Please visit https://oced-exchange.energy.gov/Default.aspx#FoaId3c3d8e7f-1839-45fc-8735-c0caf87408ef for more information and to view the full RFP.

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