ISA project risk assessment tool

The tool was developed under the ISA–ADB initiative as part of Phase 2 of the project titled ‘Ecosystem Readiness Assessment for Production and Utilisation of Green Hydrogen’.  
This flexible tool enables users to examine and analyse key risks typically associated with green hydrogen projects—such as project development, socio-environmental impact, offtake, and financing risks.  
Specifically, the following risk categories have been incorporated for analysis, with user-provided inputs forming the basis of the assessment.

1. Pre-Construction Risks: Assesses risks prior to the commencement of green hydrogen project construction, including sectoral, permitting, sponsor-related, and financial risks.
2. Construction Risks: Evaluates risks during the construction phase, such as execution-related risks (primarily involving EPC contractors), market volatility, and technology uncertainties.
3. Operational Risks: Analyses risks associated with the operational phase of the green hydrogen plant, including safety concerns, offtaker reliability, and performance-related issues.

Users input project-specific data, and the tool generates an indicative risk rating—High, Medium, or Low—for each risk category. These insights enable stakeholders to:

1. Pinpoint critical risk areas early in the project lifecycle for focused assessment and proactive monitoring
2. Develop targeted mitigation strategies
3. Formulate targeted risk mitigation strategies
4. Gain holistic, granular guidance on green hydrogen project risk profiles
5. Benchmark and compare projects based on risk exposure

Disclaimer:

This tool is currently in draft/beta testing and we appreciate your feedback. This tool is intended to provide indicative output based on information submitted by you, which should be used solely for reference purpose only. The results of this tool are not intended for any commercial usage or reproduction and does not carry any right of publication or disclosure to any other party. Users need to provide assumptions that align with envisaged countries/ projects. A few assumptions have been pre-fixed to facilitate ease of use only. The resulting output and its content do not constitute investment advice, financial advice or any form of recommendation or management decision making. The output provided do not imply any endorsement, assurance, audit or validation by us of any existing or proposed green hydrogen project of any kind or the cost involved therein. These outputs and related content are not binding and should not be relied upon for making any business, investment, or financial decisions of any manner whatsoever. You must exercise your own due diligence and verify the information before making any decisions based on the output. No liability is accepted for its use or for any inaccuracies it may contain. This tool and the resultant output is not a replacement for detailed techno-commercial feasibility and project modelling. 

Acknowledgement

Project Team: (ISA-ADB TA) Dr Mridula Bharadwaj. (ISA) Ramesh Kumar Kuruppath (Chief of Unit - PPIC), S Gautham.     
Technical Reviewers: Ashish Khanna (Director General, ISA), Dr Pradeep Tharakan (Director, Energy Transition, ADB), Tron Andre Svanes (Energy Specialist, ADB).     
The International Solar Alliance extends its gratitude to Emanuele Bianco, Energy Specialist, ADB for his valuable feedback during the course of the project.