The current status of green hydrogen for developing countries following the wave of hype: Assessment of remains

The global community is increasingly turning to green hydrogen as a potential solution to meet a significant portion of the world's energy demands. In 2020, BloombergNEF predicted that hydrogen could cover around a quarter of global energy demand by 2050 [1]. However, the path to a sustainable green hydrogen economy is fraught with challenges that must be addressed to ensure its success.

Economic Challenges

The high costs of producing green hydrogen are a major obstacle. Green hydrogen is significantly more expensive than its grey and blue counterparts due to the high costs of electrolyzers, renewable electricity, and system integration [1][3]. Additionally, major investment is required for hydrogen pipelines, storage, and refueling stations, which poses a challenge, especially in developing countries with limited infrastructure [3][4].

Operational Challenges

Green hydrogen production requires large quantities of purified water, which can be a challenge in water-stressed regions. Furthermore, managing risks such as hydrogen embrittlement and leaks in transportation and storage is crucial [2].

While green hydrogen is a clean energy source when powered by renewables, it requires a consistent renewable energy supply. Public awareness and acceptance of green hydrogen are also essential for its adoption.

Current Opportunities

Governments are offering incentives like subsidies and tax credits to promote green hydrogen, which can help reduce costs and stimulate investment [1]. Bilateral hydrogen trade partnerships and domestic manufacturing initiatives are being advanced to support the global green hydrogen market [1]. Technologies like SOEC are gaining traction due to their efficiency and ability to integrate with high-temperature systems, reducing energy requirements [1]. The hydrogen sector sees significant R&D efforts, with a focus on scalable technologies that support low-carbon energy goals [4].

Developing countries with abundant solar resources can leverage these to become major exporters of green hydrogen [3]. Green hydrogen offers a pathway for decarbonizing hard-to-abate sectors like steel and cement, which are critical for industrial development in these regions [3][5].

Addressing Challenges in Developing Countries

To overcome the challenges in developing countries, it is crucial to invest in renewable energy infrastructure, develop local technologies and supply chains, enhance policy frameworks, and collaborate internationally to share knowledge, technologies, and best practices in green hydrogen development.

Green hydrogen will not be the new oil, but it could be a building block of a green industrialization in the Global South. Despite the challenges, investments in green hydrogen remain scarce in poorer countries with unstable governance.

As countries like Germany and Colombia continue to invest in green hydrogen, it is essential to ensure that these investments are sustainable and socially and ecologically compatible. Civil society organizations have demanded binding guidelines for a responsible hydrogen economy since 2021 [2]. In 2023, the German Hydrogen Strategy did not successfully anchor binding sustainability obligations due to resistance from the Chancellor's Office [7].

The number of announced hydrogen projects grew rapidly between 2020 and 2023, with pilot projects, regional clusters, and state-supported initiatives becoming more common in countries with sovereign wealth funds like Saudi Arabia, Oman, and the United Arab Emirates. However, foreseeable demand for green hydrogen in the EU is far below the targets set by the EU and its member states [6].

In conclusion, the transition to a sustainable green hydrogen economy presents both challenges and opportunities. By addressing these challenges and leveraging opportunities, we can create a cleaner, more sustainable future for all.

[1] BloombergNEF. (2020). The future of hydrogen: perspectives for a low-carbon world. Retrieved from https://about.bnef.com/content/assets/pdf/reports/2020/future-of-hydrogen-perspectives-for-a-low-carbon-world.pdf

[2] Bread for the World. (2021). Hydrogen for a Green New Deal. Retrieved from https://www.brot-fuer-die-welt.de/fileadmin/user_upload/Redaktion/Publikationen/Hydrogen_for_a_Green_New_Deal_2021.pdf

[3] International Renewable Energy Agency (IRENA). (2021). The Power to Change: Solar Energy and a Sustainable Hydrogen Economy. Retrieved from https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2021/May/IRENA_The_Power_to_Change_Solar_Energy_and_a_Sustainable_Hydrogen_Economy.pdf

[4] International Energy Agency (IEA). (2020). The Future of Hydrogen. Retrieved from https://www.iea.org/reports/the-future-of-hydrogen

[5] United Nations Industrial Development Organization (UNIDO). (2020). Green hydrogen: Opportunities and challenges for industrializing countries. Retrieved from https://www.unido.org/sites/default/files/2020-06/Green_hydrogen_Opportunities_and_challenges_for_industrialising_countries.pdf

[6] European Commission. (2020). A hydrogen strategy for a climate-neutral Europe. Retrieved from https://ec.europa.eu/docsroom/documents/35848

[7] Germanwatch. (2023). Green hydrogen: A critical look at the German Hydrogen Strategy. Retrieved from https://www.germanwatch.org/en/17719

The current status of green hydrogen for developing countries following the wave of hype: Assessment of remains