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Power generation and renewables

Hydrogen producer financial model, built free.

A three-statement Excel model for a hydrogen producer, built from your own figures and checked to balance.

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  • Usually ready within the hour

We use generative AI in parts of our process, so mistakes can occur. Every model should be checked by a person before it is relied on. Read more

The business

Converts renewable or grid electricity (or gas with carbon capture) into hydrogen or ammonia sold under offtake contracts, often supported by production credits.

See the sampleHow the model works

In short

  • 01

    Three linked statements

    Income statement, balance sheet and cash flow, linked in every period.

  • 02

    Valued two ways

    Discounted cash flow and project equity NPV, side by side.

  • 03

    Monthly to annual

    Monthly, quarterly, half-yearly or annual periods, for up to 30 years.

  • 04

    Checked every period

    A Checks sheet shows the balance sheet balances and the cash reconciles.

The sample

The sample, as Excel draws it.

Built by the same system and checks as yours, on illustrative figures: every sheet as Excel draws it, or live.

Annual · 10 years · Low detail
Hydrogen producer sample model.xlsx
The Summary sheet of the sample hydrogen producer model

Illustrative figures: the sample describes no real business. The live preview shows values; your model’s Excel file has every formula.

How it works

How the model works for a hydrogen producer.

  1. How it earns revenue3 formulas
    Hydrogen production and sales · All energy assets
    Electricity costElectricity used by the electrolyserDelivered electricity price
    Hydrogen production and sales · All energy assets
    Electricity used by the electrolyserInstalled capacityDays in periodElectrolyser utilisationShare of the period in operation (after COD)from development and construction
    Energy revenue · All energy assets
    Electricity salesPPA revenueMerchant revenue
  2. What drives its costs2 formulas
    Operating costs · All energy assets
    Operating costsO&M contractAsset managementLand leaseInsuranceGrid (TUOS) and connection chargesCommunity fund
    Fuel, charging energy and carbon costs · All energy assets
    Charging energy costEnergy chargedCharge (off-peak) priceNetwork charge on energy charged
  3. What it invests in3 formulas
    Asset base and depreciation · All energy assets
    Capital expenditureConstruction capexfrom development and constructionSustaining capex
    Asset base and depreciation · All energy assets
    DepreciationOpening net book valueCapital expenditureShare of the period in operation (after COD) (development and construction)from development and constructionshare of the yearRemaining life at period start
    Asset base and depreciation · All energy assets
    Closing net book valueOpening net book valueCapital expenditureDepreciation
  4. How it is funded3 formulas
    Debt
    RepaymentsScheduled repaymentsPrepayments from an equity raise and the cash sweep
    Debt
    Closing balanceOpening balanceDrawdownsRepayments
    Debt
    Interest expenseOpening balanceAll-in interest rateshare of the year
  5. How profit becomes cash3 formulas
    Clean energy tax credits · All energy assets
    Investment tax credit earnedPlaced in service in the periodEligible project costCredit rateBonus adders
    Working capital
    Trade receivablesRevenuefrom statementsDebtor daysDays in period
    Working capital
    InventoryDirect costs (positive)from statementsInventory daysDays in period
What it covers

31 parts, each one tested.

Every part is a tested building block with its own checks: yours is put together from the ones your business needs.

  • CPI forecastConsensus curve with long-run anchor
  • Corporate costsFixed cost base indexed to CPI
  • Working capitalFull working capital
  • Income taxCorporate rate with tax losses
  • DebtAmortising term loan
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • Wholesale electricity price curveAdviser price curveThe wholesale electricity price forecast used by the revenue and cost parts that need it.
  • Decommissioning and restoration provisionsPresent value with accretionProvisions to remove generation assets, abandon wells and restore sites — recognition, unwinding and spend.
  • Energy and utility KPIsGeneration unit metricsThe ratios investors and lenders use to judge energy and utility businesses.
  • Key-metric summaryLast-twelve-month and run-rate metrics
  • Cash flow available for debt service (CFADS)From free cash flow to the firm
  • Debt sizing and sculptingLower of DSCR capacity and maximum gearing
  • Senior project debtSculpted repayment
  • Reserve accounts (DSRA)DSRA built from operating cash flow
  • Cover ratios (DSCR, LLCR, PLCR)Period DSCR with LLCR and PLCR
  • Project and equity returnsProject IRR, equity IRR and NPV
  • Discount rate (WACC)CAPM at target gearing
  • Project timeline and phasesKey dates and durations
  • Tax depreciationTax life equal to book life
  • Construction funding and drawdownPro rata at the target gearing
  • Shareholder loans and the equity splitOrdinary equity only
  • Cash flow waterfall and distribution lock-upStandard cascade with lock-up test
  • Clean energy tax creditsInvestment tax credit on eligible costProduction and investment tax credits earned by an asset, whether used by the owner, sold to a third party or allocated to a tax equity investor.
  • Hydrogen production and salesElectrolyser utilisation and efficiencyHydrogen (or ammonia) output of an electrolyser or reformer and the revenue from selling it, including production credits.
  • Asset registerEnergy asset registerThe facts every other part of the model builds on — capacity, opening book value and remaining life.
  • GenerationStorage cycles and state of healthElectricity sent out (or discharged) by each asset in each period.
  • Energy revenuePPA with merchant tailRevenue from selling electricity (or discharging storage) under contracts and in the wholesale market.
  • Operating costsCost lines with escalationSite operating costs — O&M, asset management, land lease, insurance, grid charges and community payments.
  • Asset base and depreciationStraight-line depreciation over remaining lifeSustaining and replacement capex and depreciation of each asset's property, plant and equipment.
  • Development and constructionTotal capex spread to CODConstruction capex, commercial operation date and ramp-up for new assets, and the development pipeline.
  • Fuel, charging energy and carbon costsCharging or pumping energyVariable cost of the energy an asset consumes — gas, coal, charging or pumping electricity, electrolyser power — and its carbon cost.
Key numbers

The numbers it tracks.

  1. 01hydrogen output (t)
  2. 02electrolyser utilisation
  3. 03LCOH per kg
  4. 04EBITDA
  5. 05project IRR
Used for

What it is used for.

Also used for
  • Scenarios and sensitivities
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The sample is built on illustrative figures and describes no real business. Models are calculations prepared from the information you provide. They are not financial advice and must be independently verified. See our terms.