Contract for difference (CfD) entered the hydrogen sector as a natural extension of their successful application in the electricity sector. In the UK, low carbon hydrogen CfDs are primarily focused on two key objectives: reducing the costs of hydrogen production and scaling up production capacity. This raises the question of whether these contracts will be as effective as their counterparts in the electricity sector. We argue that Hydrogen CfDs face significant limitations compared to the more established renewable electricity CfDs, particularly in their ability to drive cost reductions and manage risk effectively. First, while renewable electricity projects benefit significantly from fixed-price contracts by reducing capital costs, this impact is less likely for green hydrogen, where operational costs are more dominant. Second, hydrogen CfDs place greater cost risks on producers due to the variability of electricity prices and immature supply chains.