Colombia Strives to Become Green Hydrogen Producer, but Challenges Remain

Colombia has set ambitious goals to become a significant producer and exporter of green hydrogen by 2030.

However, despite having a roadmap in place, the country faces several challenges in achieving its objectives. This article will explore the goals, technology, potential impact, and challenges surrounding Colombia’s green hydrogen ambitions.

Colombia’s roadmap outlines a target of installing between 1,000 and 3,000 megawatts of electrolysis capacity, which would require an additional 4,000 megawatts of non-conventional renewable energy sources. Currently, the country only has 360 megawatts of solar and wind power. Delays and difficulties with prior consultations, environmental licensing, and administrative procedures pose further obstacles to the timely completion of 80 ongoing renewable energy projects.

To enable the development of green hydrogen, specific regulations tailored to the Colombian context are crucial. The government needs to strike a balance between comprehensive regulations and a market-friendly approach. Financing options are being explored, and a program is being developed by the Ministry of Mines and Energy, the European Union, and the Colombian Hydrogen Association to finance green hydrogen projects. However, challenges related to environmental licensing, particularly for projects using seawater, need to be addressed.

The lack of suitable port infrastructure is another hurdle for Colombia’s green hydrogen ambitions. Establishing adequate port facilities is essential to enable exports to potential markets such as Asia, the European Union, and the United States. Without the necessary infrastructure, Colombia’s potential as an exporter of green hydrogen, which could rival its current coal exports in terms of revenue, cannot be realized.

Colombia faces financial limitations when it comes to offering substantial incentives for the development of green hydrogen. It is important for the government to focus on regulations that cover the entire value chain, ensure competitiveness of renewable energy, and facilitate transmission to consumption centers. While tax incentives for hydrogen production equipment exist, green hydrogen remains more expensive than gray hydrogen. Incentives to boost consumption beyond refining are also crucial.

Colombia has the potential to explore white hydrogen as an alternative to the hydrocarbon industry. The country’s subsoil conditions provide a promising recipe for white hydrogen production. However, before venturing into white hydrogen, it is necessary to focus on optimizing the potential of blue hydrogen, utilizing existing oil and gas pipelines. Offshore hydrogen production and geothermal power generation in the Eastern Plains are additional opportunities to explore.