The scheme, aimed at supporting 200,000 tonnes of green hydrogen production per year, will offer two-way contracts for difference to subsidise production costs.

Producers would be offered a strike price through a competitive bidding process, where they would be paid the difference between consumer costs and the strike price. If the hydrogen prices exceed the strike price, producers would pay the difference back to the state.

Hydrogen producers using renewable-powered electrolysis and biogenic sources will be eligible under the measure.

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