Global Hydrogen in the Southern Regions: Debunking Post-Hype Realities
The green hydrogen economy, with its potential to replace fossil fuels in difficult-to-decarbonize sectors and contribute to energy security and sustainable development, has garnered significant attention as a climate-friendly energy source. However, its implementation, particularly in the Global South, faces unique hurdles.
The Green Hydrogen Advantage
Green hydrogen, produced through electrolysis powered by renewable energy sources, offers a zero-carbon energy solution with water as its only by-product. This makes it an ideal tool to replace fossil fuels in sectors like steel manufacturing, chemicals, and refining, which collectively produce a large share of global CO₂ emissions. For instance, fossil-free steel production emits only water vapor, and green hydrogen-based ammonia could cut emissions by up to 90% in fertilizer production.
However, some applications, such as hydrogen blending in natural gas for building heating, are inefficient and waste renewable electricity compared to direct electrification alternatives like heat pumps.
Geopolitical Implications and Economic Growth
Countries investing in green hydrogen aim to reduce fossil fuel imports, enhancing energy security and geopolitical independence. Export hubs for green hydrogen can reshape global energy trade, with countries like India positioning themselves as leaders in the hydrogen export market, potentially shifting geopolitical dynamics around energy supply.
The development of green hydrogen enables new industries and job creation, supported by skill development programs and investment in testing and infrastructure. Cost reductions are projected as technology matures, potentially reducing the operational cost of this clean hydrogen by up to 40% in industries like steel.
Challenges in the Global South
Despite its potential, the success of the green hydrogen economy depends on overcoming infrastructure, skill, financial, and policy challenges, which are particularly acute in the Global South.
- Infrastructure and Technology: Scaling renewable energy capacity for electrolysis and creating hydrogen storage, transport, and distribution systems require substantial investment and technical capacity, often limited in the Global South.
- Skill Development and Capacity Building: A shortage of trained professionals in the green hydrogen sector restricts rapid adoption; coordinated skill development programs are needed to build local expertise.
- Financial and Policy Barriers: High upfront costs and limited access to financing—especially in fragmented or inefficient environmental governance contexts—hinder projects. Policy fragmentation and lack of coherent regulations slow down green hydrogen adoption in South Asia and other parts of the Global South, necessitating more integrated frameworks and international cooperation.
- Efficiency and Practical Application Issues: Some uses of hydrogen are currently inefficient and may misallocate renewable energy resources, indicating that green hydrogen must be targeted where it is most effective (e.g., industrial feedstocks) rather than across-the-board energy carriers.
Moving Forward
Focused investment in renewable capacity, workforce training, regulatory coherence, and prioritizing high-impact applications of green hydrogen are critical steps for realizing its full potential. Programs like H2Global, H2Uppp, and the H2-Diplo network aim to stimulate investment, promote technology exports, and enable fair supply chains in the hydrogen market.
In conclusion, the green hydrogen economy holds strong promise to deliver on climate goals, serve as a strategic geopolitical asset, and drive economic growth. However, its success depends on overcoming infrastructure, skill, financial, and policy challenges, particularly in the Global South.
- The green hydrogen economy, produced through electrolysis powered by renewable energy, can contribute to climate-change mitigation with its zero-carbon energy solution.
- Green hydrogen, with water as its by-product, can potentially replace fossil fuels in industries like steel manufacturing, chemicals, and refining, thereby reducing CO₂ emissions.
- Geopolitical implications involve reducing fossil fuel imports, enhancing energy security, and reshaping global energy trade, with countries like India positioning themselves as leaders in the hydrogen export market.
- The development of the green hydrogen economy requires overcoming hindrances, particularly in the Global South, such as infrastructure, skill, financial, and policy challenges.
- In the Global South, the construction of renewable energy capacity for electrolysis and hydrogen storage, transport, and distribution systems requires significant investment and technical capacity.
- Collaborative skill development programs are necessary in the green hydrogen sector to build local expertise, as a shortage of trained professionals restricts rapid adoption in the Global South.
- International cooperation is essential to overcome financial and policy barriers, such as limited access to financing and policy fragmentation, which hinder green hydrogen projects in South Asia and other parts of the Global South.
