Financial Model, Hydrogen, Renewable Energy, Wind

Cash Flow Analysis, Cash Flow Projections, Consolidation, Discount Rate, Excel, Financial Analysis, Financial Debt, Financial Feasibility, Financial Model, Financial Modeling, Financial Planning, Financial Projections, Financial Ratios, Financial Statements, Forecast, Income Statement, Investor Cash Flows, Investors, IRR (Internal Rate of Return), NPV (Net Present Value), Profitability Analysis, Sensitivity Analysis, Uses and Sources of Funds

This Green Hydrogen business model template is based on bottom-up assumptions from the hydrogen plant’s daily design capacity, which will drive the hydrogen production, electricity consumption, and electricity needed. These assumptions will show the result of the size of the Wind Farm.

Other assumptions include the project operations timeline for the wind farm and green hydrogen plant, duration of power purchase agreements, electricity sales, uses and sources of funds, and debt financing. These assumptions are then translated into a comprehensive 40-year financial plan that allows the business owner and management to see how the business should perform from a financial perspective over the following years.

The green hydrogen financial plan is presented in various charts and tables to understand the costs of producing green hydrogen from wind energy. Calculations of the relevant financial ratios and metrics (such as green hydrogen profit margin, IRR, and NPV) are also included.

What makes this Green Hydrogen Business Financial Model unique?

This financial model template has the following unique aspects:

• Financial Feasibility Metrics per Plant– The model calculates the financial feasibility metrics (such as IRR, Payback Period, NPV) for the combined operations (Hydrogen and Wind) and for each plant individually
• Levelized Costs of Electricity and Hydrogen: Calculates the Levelized Cost of Hydrogen for the Hydrogen Plant and the Levelized Cost of Electricity for the Wind Farm.
• Advanced Tax Models: Both the Hydrogen Plant and the Wind Plant can potentially benefit from Tax advantages. The model includes an advanced tax model to consider the effect of a variety of possible tax incentives for such plants.
• Detailed Financial Plans with full transparency on all calculations. The spreadsheet is designed in a logical manner, outlining the calculations of revenues and costs in a logical manner, which adds to the transparency and understanding of the model.

Deciding whether to invest or not in producing green hydrogen from wind energy requires a well-prepared and comprehensive financial plan. Developing financial projections can clarify the possible profit margins, the funding required, and the expected returns. This solid and unique financial model template can be the missing piece to bringing green hydrogen to financial success.

Green Hydrogen Financial Model Template Structure

The financial model is structured with instructions and formulas that are simple and easy to follow, which allows users to run simulations by varying the input assumptions. The elements of this financial model template are enumerated below:

Terms contain the cell color codes and the terms and abbreviations used.

Executive Summary and Detailed Summary include charts and graphs to understand your Green Hydrogen Plant and Wind Farm’s financial reports and business plan better and to answer significant questions such as:

• Is green hydrogen profitable?
• How much does it cost to produce green hydrogen from wind energy?
• What should the green hydrogen prices be?
• What is the breakdown of the revenue of the wind farm and green hydrogen plant?
• Which generates a higher profit margin – a green hydrogen plant or wind farm?

These spreadsheets include a 10-year summary of the following:

• Projected Green Hydrogen Production from Wind Energy Financial Statements overview – Income Statement, Balance Sheet, and Cash Flows Statement.
• Levered and Unlevered Free Cash Flows calculating key financial feasibility metrics such as the Internal Rate of Return (IRR), Payback Period, Net Present Value (NPV)
• Uses and Sources of Funds and Debt Financing
• Lifetime Profit Distribution and Cash Flows
• Investor Summary
• Levelized Cost of Electricity (Wind Farm) and Levelized Cost of Hydrogen (Green Hydrogen Plant)
• Revenue Breakdown of Green Hydrogen Plant and Wind Farm
• Wind Farm and Green Hydrogen Plant Capacity Summary

Assumptions that are necessary and applicable in green hydrogen production from wind energy are presented in this worksheet.

• General Settings
  • Currency
  • Project Details – Name, Location
  • Project Timeline – Green Hydrogen Production from Wind Energy Operation Years and Plant Lifetime
  • Net Working Capital
  • Inflation and Price Escalation
  • General Tax Assumptions
• Green Hydrogen Plant Assumptions
  • Green Hydrogen Plant Operating Capacity and Capacity Utilization
  • Hydrogen Plant Production Output
  • Electricity Consumption and Sources
  • Green Hydrogen Price and Other Income Assumptions
  • Duration of Purchase Power Agreements
  • Advanced Tax Assumptions
  • Capital Expenditures, CAPEX Schedule, and Maintenance per year
  • Direct Costs
  • Employee Positions and Expenses
  • Operating Expenses.
• Wind Farm Assumptions
  • Electricity Installed Capacity and Power Production
  • Electricity Sales Allocation
  • Electricity Sales Price Assumptions
  • Duration of Purchase Power Agreements
  • Wind Farm Renewable Energy Certificate
  • Advanced Tax Assumptions
  • Capital Expenditures, CAPEX Schedule, and Maintenance per year
  • Employee Positions and Expenses
  • Operating Expenses
• Uses and Sourced of Funds
  • Debt Financing – Loan Terms, Interest Rate, and Repayment Schedule
  • Cash Reserve and Net Working Capital
• Debt Financing Schedule
  • Repayment Schedule – Calculated or Manual
  • Interest – Cash or Accrued
• Investors
  • Equity Ownership and Investment Percentages
  • Development (Phase 1) and Buy & Hold (Phase 2)
• Dividend Payout Assumptions

Hydrogen Plant and Wind Farm worksheets contain detailed calculations of the 40-year operational, financial forecast planning, and feasibility of the Green Hydrogen Production from the Wind Energy business.

• Financial Statements – Income Statement, Balance Sheet, Cash Flow Statement
• Financial Ratios and Green Hydrogen Plant Economic Analysis
• Unlevered and Levered Free Cash Flow Statement, Funding Required, and Financial Metrics
• Wind Farm’s Electricity Production Allocation and Sales
• Green Hydrogen Plant Electricity input and Hydrogen production sales
• Costs to produce Electricity and Green Hydrogen
• Fixed Assets Schedule – Initial CAPEX, Spending allocation, Maintenance and Depreciation
• Debt Schedule
• Simple and Advanced Tax Model Summary
• Levelized Costs of Electricity and Hydrogen

Advanced Tax Models worksheets present detailed calculations of the State and Federal Income Taxes of the Wind Farm and Green Hydrogen Plant, considering the different tax rates and tax credits.

The Consolidated worksheet contains a comprehensive and consolidated summary of the 40-year forecast for the Wind Farm and Green Hydrogen Plant.

• Financial Statements – Income Statement, Balance Sheet, Cash Flow Statement
• Financial Ratios
• Unlevered and Levered Free Cash Flow Forecast
• Financial Metrics, and
• Divided Policy Schedule

Investors’ Cash Flow is prepared to show the calculations of the Equity Multiple and Investors’ IRR, which helps determine if their funding and equity stake percentages during the Buy & Hold and Development Phases would result in profit on their end.

Sensitivity Analysis determines how variables such as prices, expenses, and inflation affect the IRR of a chosen parameter. Users may select Unlevered or Leveled IRRs of the Wind Farm, Green Hydrogen Plant, Consolidated, and Investors.

Produce your own Green Hydrogen from Wind Energy now!

Produced from wind energy, this Green Hydrogen Plant financial model template contains valuable tools that allow users to analyze the financial plan of starting a green hydrogen business in detail by testing various scenarios and assessing how they affect the project’s viability. The financial model will help business owners answer the question – Is Green Hydrogen profitable?

The financial model template comes pre-filled with a 40-year forecast, which users may modify easily by updating the marked assumptions in blue or light blue.

The current model version 3.5, is available in two Excel versions and a PDF Demo Preview:

• Excel Version – Consists of sample figures in the assumptions
• Excel Null Version – No values in the assumption sheet
• PDF Version – Outlines the details of the model structure

File types:
.xlsx (MS Excel)
.pdf (Adobe Acrobat Reader)