Publications
Publications
- September 2024
- HBS Case Collection
Copenhagen Infrastructure Partners: Leading the Energy Transition
By: John Macomber and Maxwell Nii Laryea
Abstract
A leading global infrastructure fund debates whether and when to become engaged in the electrolysis and distribution of hydrogen, as part of the hydrogen economy and the global transtion to a net zero energy world. The proposed billion dollar project consists of wind and solar resources to generate electricity, as well as an electrolyzer component that could use that electricity to convert water to its base gases, hydrogen and oxygen. Obstacles in the program include both the usual risks and uncertainties of large project finance and public private partnerships for infrastructure, a gamble on future market prices for both electricity and hydrogen, and also the technological challenges of isolating, transporting, storing, and converting hydrogen back into useful energy. Considering the current and future capital and operating costs in the levelized cost of hydrogen, should the developers go ahead with the entire project, only build the wind and solar component, or scrap it and wait for technology to advance and more stable market prices to be discovered?
Keywords
Energy; Infrastructure; Energy Generation; Renewable Energy; Project Finance; Energy Industry; Spain
Citation
Macomber, John, and Maxwell Nii Laryea. "Copenhagen Infrastructure Partners: Leading the Energy Transition." Harvard Business School Case 225-012, September 2024.