Latham Collaborates on New Guidance to Help Standardize Contracting Practices for Green Hydrogen Projects

Latham & Watkins has collaborated with legal experts as well as government, industry, development finance, and civil society representatives, to develop “Green Hydrogen Contracting for People and Planet”, an initiative launched by The Green Hydrogen Organisation (GH2) to support governments, communities, and companies in the creation of standardized contracting practices for renewable energy and green hydrogen projects. 

With green hydrogen expected to supply 25% of the world’s energy by 2050, governments are increasingly setting green hydrogen targets, developing strategies, and implementing policies to ensure they can benefit from the increasing demand for green hydrogen. To date, however, few countries have established comprehensive legal and fiscal frameworks that will govern green hydrogen projects. 

The new initiative, launched at the Green Hydrogen Global Assembly and Exhibition in Barcelona, draws on lessons learned from other sectors and emerging practices in the green hydrogen industry to highlight existing international standards and good practice, and to provide recommendations and model clauses for contracts. 

The initiative covers eight separate briefs identified as important for decision makers in the early stages of policy and project development and contract negotiations, including; policy and regulatory developments; financing of green hydrogen projects; fiscal terms and incentives; community engagement and transparency practices; land acquisition and use; infrastructure access and common use; sustainable development contribution; and dispute resolution.

“Green hydrogen projects will involve complex negotiations, and coordination with many stakeholders on a myriad of legal and regulatory issues,” said JP Sweny, Finance partner in Latham & Watkins’ London office. “This initiative from participants across this nascent sector seeks to provide a set of consistent, globally applicable principles to help ensure green hydrogen projects are developed in an effective, fair and efficient manner.”

Read more about “Green Hydrogen Contracting for People and Planet” and The Green Hydrogen Organisation.