Global Hydrogen in the South: Assessing Reality Beyond the Excitement for Renewable Energy
In the pursuit of a sustainable future, green hydrogen has emerged as a potential game-changer. According to BloombergNEF, this clean energy source could cover around a quarter of global energy demand by 2050. However, the global rollout of green hydrogen is proceeding more slowly and selectively than expected, particularly in developing countries.
One of the main reasons for the delays is the lack of infrastructure. Green hydrogen production requires complex facilities such as electrolysis plants, pipelines, storage units, and export terminals. Many developing regions lack sufficient infrastructure and integration, making it a significant challenge.
Another hurdle is the reliable supply of renewable energy. Green hydrogen depends on abundant, consistent renewable electricity from sources like solar and wind. Despite good renewable potential, many developing countries face inconsistent or limited renewable power availability, especially in remote areas.
Water availability and management pose another challenge. Electrolysis consumes large volumes of water, and balancing water security with hydrogen production is critical, requiring advanced water treatment or desalination solutions in water-scarce regions.
Coordinating policies, certification schemes, cross-border infrastructure, and financing across countries is also a daunting task. However, regional cooperation is necessary to scale green hydrogen sustainably.
High costs of production, lack of mature markets, and competition with fossil fuels create economic challenges. Attracting investment and developing local demand beyond exports, such as decarbonizing domestic industries, remain hurdles.
Despite these challenges, opportunities abound. Many developing countries, such as those in Central Asia, Africa, and India, have vast solar and wind potential that can be harnessed for green hydrogen production. This could drive economic diversification by fostering new industries, exporting green fuels like ammonia, and replacing fossil fuels in sectors like fertilizer production, steelmaking, and refining.
Joint action can unlock infrastructural synergies, shared certification standards, and financing mechanisms that lower costs and improve market access for developing countries. Creating industrial parks focused on clean energy can attract investment, improve coordination, and support water and energy infrastructure critical for scaling green hydrogen.
Developing countries with abundant renewable resources and strategic locations can become exporters of green hydrogen to carbon-neutral markets like the EU. Global programmes like H2Global, H2Uppp, and the H2-Diplo network aim to stimulate investments, promote technology exports, and enable fair supply chains.
Notable figures have endorsed this shift. Chancellor Scholz announced investments of over four billion euros in the hydrogen market in 2022, and President Biden made "clean" hydrogen a pillar of the Inflation Reduction Act. Even Colombian President Gustavo Petro declared in 2024 that green hydrogen could be the oil of the future.
However, civil society organizations have demanded binding guidelines for a responsible hydrogen economy since 2021. It is crucial that the North changes its policies and enters into reliable partnerships with producing countries based on strict environmental and social standards and a significant increase in value creation.
In conclusion, developing countries must overcome infrastructure, water, energy supply reliability, and economic challenges to responsibly grow green hydrogen economies. Yet, their renewable resource endowments and potential for regional cooperation present substantial opportunities for sustainable development and decarbonization.
- Economic and social policy must address infrastructure development for green hydrogen, as complex facilities like electrolysis plants, pipelines, storage units, and export terminals are required.
- Science and technology play a crucial role in overcoming challenges in supplying renewable energy for green hydrogen production, particularly in remote areas with inconsistent power availability.
- Climate-change solutions can be advanced by investing in renewable-energy resources and green hydrogen, which could cover a quarter of global energy demand by 2050, according to BloombergNEF.
- governments and industries should work together towards a sustainable future by focusing on environmental-science advancements in water management for green hydrogen production, especially in water-scarce regions.
- finance and investment are key to scaling green hydrogen sustainably, as high production costs and lack of mature markets challenge the growth of this clean energy source.
- education-and-self-development programs can help businesses and individuals understand the benefits of green hydrogen and its potential impact on lifestyle choices, particularly in terms of investing in cleaner technologies.
- General news coverage of green hydrogen's potential, along with endorsements from notable figures like Chancellor Scholz, President Biden, and Colombian President Gustavo Petro, can help foster public support for this clean energy source and its role in the global fight against climate-change.
