Colombia Accelerates Green Hydrogen Development with Germany: Opportunities for Export and Economic Growth

2023-06-21 05:08:57

20/06/2023

Colombia continues to accelerate the pace in its intention to develop green hydrogen as a sustainable energy source. The national government and Germany signed a memorandum of understanding to analyze the production of energy and its derivatives with a view to exporting it to the European nation.

The agreement signed in Berlin, and in which the cooperation of the Fraunhofer Society, one of the world leaders in research, is expected, seeks to evaluate the hydrogen transport chains.

For the German government, Colombia has been setting the course for an ambitious hydrogen development that includes several Regional Hydrogen Hubs and the development of the Cartagena Strategic Industrial Area as a potential future large-scale Hydrogen Center, thanks to its excellent wind resources. and solar.

According to the studies presented last December, during a meeting of experts from the two countries, the Caribbean Region of Colombia can become an important industrial area for hydrogen and deliver significant volumes to local and international markets at competitive prices.

“We are grateful for this collaboration, and we are certain that green hydrogen is an opportunity for Colombia to close social and economic gaps,” highlighted the Minister of Mines and Energy, Irene Vélez.

For his part, Germán Umaña, head of the Commerce, Industry and Tourism portfolio, pointed out that “since the beginning of this government we have been proposing the need to redo a policy model for sustainable development, energy transition and we have proposed the reindustrialization process of our economy”.

The official stressed that the signed memorandum seeks the economic transition with models such as green hydrogen and ammonia; agro-industrial development and the transition towards biofertilizers.

It should be remembered that the Fraunhofer Society, established in 1949, is the largest applied research organization in Europe. In Germany alone it comprises 76 institutes and agencies, and has offices in the United States, Brazil, South Africa, Israel, China and India.

“From this collaboration, it is possible to analyze the opportunities that our country has to manufacture the necessary equipment for the production, conditioning and use of hydrogen, accelerating reindustrialization. This represents an important opportunity, since Colombia’s strategic positioning can make it the regional provider of this kind of technology”, explained Mónica Gasca, director of the Colombian Hydrogen Association.

Transportation, the question

The agreements that Colombia has been signing with several countries of the Old Continent to research and develop green hydrogen leave questions on the table such as: if the country has the potential to export hydrogen to other nations, is it profitable taking into account that the transport of energy is so expensive?

Analysts from the renewable energy sector consulted explained that at the time of developing exports, which will be in a few years, the costs to transport energy will be competitive.

For the technicians from the Ministry of Mines and Energy, the implementation of the infrastructure for the production of hydrogen is a process of gradual transformation, and as all its development is consolidated, the structure of the operating costs will decrease, including transportation costs.

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For his part, Gasca, from the Association, stressed that, although the transport of hydrogen is expensive, the export is being considered through ammonia.

“The transport of ammonia is something that the world has been developing for many years and already has low prices, for this reason it does not significantly affect our competitiveness. It is important to highlight that we have to focus on enabling the department of La Guajira for hydrogen production, which will lead us to take advantage of the best renewable resources and produce very competitive green hydrogen”, he explained.

Also with Spain

Weeks before the signing of the memorandum with Germany, the Petro Government signed a similar one with Spain, which aims to join efforts to establish a cooperation framework for mutual benefit in the field of transition and decarbonization of the energy sector.

Thus, both countries will work hand in hand to develop programs for climate change mitigation and adaptation initiatives, energy communities, decentralization and digitization of the electricity sector, energy transition policies, labor and productive reconversion in post-extractive areas, green hydrogen and its derivatives.

Likewise, in strategies against energy poverty, electrical integration, sustainable mobility and smart cities, energy efficiency, sustainable management of strategic raw materials for the transition and other issues that are determined jointly and are framed in the expected objective.

The duration of this alliance will be in principle for three years.

Hydrogen bill advances

The “Hydrogen Economy” Bill was approved in the first debate in the Fifth Committee of the House of Representatives. The initiative presented by Congressman Nicolás Barguil seeks to position and convert the country into a large supplier of hydrogen worldwide.

“In Colombia, hydrogen has a great future since it represents not only an opportunity for economic growth and job creation, but also makes the country one of the main players in the world, in the energy transition process and a international hydrogen producing power”, said the representative.

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