The International Renewable Energy Agency (IRENA) emphasizes the need to develop sustainable global hydrogen value chains.
While affordable low-carbon hydrogen is crucial for achieving net-zero emissions by 2050, the ability to produce it isn’t uniformly distributed across the globe. This imbalance could lead to a new international market for low-carbon hydrogen, potentially reshaping global energy trade and creating opportunities for developing countries. However, this also raises sustainability concerns.
Complex Value Chains
A new global hydrogen market may introduce intricate international value chains. These chains will require a comprehensive approach to sustainability, particularly for developing countries. IRENA’s report, Shaping Sustainable International Hydrogen Value Chains, highlights that by 2050, about 25% of global hydrogen demand could be traded internationally. Approximately 55% of this hydrogen could be transported through retrofitted natural gas pipelines, while the remaining 45% may be shipped using ammonia as a carrier.
Support for Renewable Hydrogen
Developed nations offer incentives to support renewable hydrogen production, which often extends to foreign markets. IRENA stresses that emerging hydrogen value chains must prioritize economic, environmental, social, and governance sustainability.
Equitable Energy Transition
For a just and equitable energy transition, developing countries must benefit economically and socially from producing and exporting hydrogen. Fostering local industrial development, creating sustainable jobs, and enhancing international competitiveness could achieve this.
Green Transition and Environmental Impact
The development of hydrogen in exporting regions should also drive broader green transitions. It’s important to ensure that the environmental impact of green hydrogen production doesn’t shift burdens onto developing countries. Supporting renewable energy deployments beyond those needed for hydrogen production facilities is recommended to promote a wider energy transition.
