As part of a joint webinar organized by MED-GEM and IRENA, prominent experts in the energy sector came together online on April 29th to discuss the crucial role of industry in the development of green hydrogen. This leading event, initiated by a host of distinguished speakers, including Gurbuz Gonul, Director of International Engagement and Partnerships at the International Renewable Energy Agency (IRENA), Frank Wouters, Director of MED-GEM, and Milou Beerepoot, Project Manager for Regional Programs for the Southern Neighborhood - Energy at the Directorate-General for Neighborhood and Enlargement Negotiations (DG NEAR) of the European Commission. Moderated by Tarig Ahmed, the two-hour debate allowed eminent experts to share their informed perspectives on the potential of green hydrogen and the challenges to overcome for its full realization.

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In his opening remarks, Gurbuz Gonul, Director of National Engagement and Partnerships at IRENA, emphasized the importance of international cooperation in accelerating the energy transition, highlighting the essential role of green hydrogen in this transition. He identified the multidimensional challenges associated with the industrial development of green hydrogen, including financial, regulatory, and logistical obstacles, and underscored the need for concerted policy actions to overcome these challenges. Gurbuz also discussed the potential of the MENA (Middle East and North Africa) region to become a major player in the field of green hydrogen, thanks to its abundant energy resources and growing desire to reduce dependence on fossil fuels. He emphasized the importance of striking a balance between export ambitions and local needs to ensure the success of the regional energy transition.

Frank Wouters, director of the MED-GEM Network, highlighted the crucial importance of green hydrogen in decarbonizing hard-to-electrify sectors. Despite current challenges, including costs, he expressed optimism about the ability to overcome these obstacles through collective action and rapid scaling of technologies.

Milou Beerepoot from the European Commission provided additional insights into the European Union's initiatives on green hydrogen, emphasizing the importance of international cooperation in achieving climate objectives. She shared information about the MED-GEM Network project, aimed at creating a stakeholder network to promote the development of renewable hydrogen in the Mediterranean region. As part of the RePowerEU plan, the EU highlights the importance of renewable hydrogen, especially from the southern Mediterranean region. She also announced that the results of the first call for projects from the European Hydrogen Bank will soon be published, revealing keen interest with 132 submissions from 17 EU countries for domestic renewable hydrogen production. Despite challenges, these results indicate promising progress, with a projected capacity of 8.5 gigawatts of electrolyzers capable of producing 8.8 million tons of renewable hydrogen over 10 years.

In the first session of the webinar, moderated by Frank Wouters, Director of MED-GEM, the spotlight was on the current situation of renewable energies and green hydrogen in the Southern Mediterranean countries (SMCs) and the MENA region.

A detailed overview of the development of green hydrogen in the SMCs, highlighting the crucial role of MED-GEM's Industry Advisory Board in this process. by Dr. Mustapha Taoumi, Key Expert of MED-GEM Network.

The Mediterranean region stands as a strategic crossroads, where economic, geopolitical, and environmental interests converge. During a recent webinar hosted by Mustapha Taoumi and Frank Wouters, several experts examined the challenges and prospects of the energy transition in this region. Here is an overview of the discussions and key recommendations discussed during this event.

The projected increase in energy demand over the next 25 years in the Mediterranean region is a major challenge, exacerbated by factors such as economic development, population growth, and climate change. The effects of climate change, such as rising temperatures, water scarcity, and coastal erosion, are realities the region faces. It is widely recognized that the energy transition is essential to mitigate these effects and ensure a sustainable future.

The transition to renewable energies offers considerable potential in the region, notably due to the abundance of solar and wind resources. However, despite progress made, not all countries are following the same trajectory to accelerate this transition. Mustapha discusses the five "Ds" of the energy transition: Democratization, decarbonization, decentralization, market liberalization, and digitization are all key aspects of this transition. It is also noted that renewable energies have some limitations, particularly in sectors such as industry and transportation, where other solutions, such as green hydrogen, are needed.

Green hydrogen is identified as a crucial complementary solution for decarbonizing hard-to-abate sectors, such as industry and transportation. However, its development requires an integrated approach, combining energy efficiency, storage, and digital solutions. Pilot projects are already underway in Morocco and Egypt, highlighting the region's commitment to this technology.

One of the main challenges is coordinating efforts and avoiding overlaps between different regional and international initiatives. Close collaboration with organizations such as IRENA and the EU is essential to maximize synergies and avoid redundancies. Standardizing regulations and establishing common standards, especially regarding certification, are key elements to facilitate trade and export of green hydrogen to Europe.

A crucial aspect of the energy transition is creating local value and developing a domestic market for renewable energies and green hydrogen. Governments must play a leading role by establishing incentive regulations and mandatory targets to promote the adoption of these technologies. Additionally, the establishment of suitable local infrastructures is essential to support the development of these markets.

In conclusion of this first session, the energy transition in the Mediterranean region presents both significant challenges and opportunities. Effective coordination, close collaboration between regional and international actors, and sustained commitment from governments and the private sector are essential to realize the potential of renewable energies and green hydrogen, while ensuring a sustainable energy future for the region.

The second session of the webinar, moderated by Emanuele Bianco from the IRENA Programs Office, provided informed perspectives on the potential of green hydrogen, with presentations on "Building Sustainable Value Chains for Green Hydrogen and Its Derivatives" by Ann-Kathrin Lipponer, Associate Programme Officer at IRENA, followed by a presentation on "Reassessing Hydrogen Trade" by Abdullah Fahad, Associate Programme Officer at IRENA.

Building Sustainable Value Chains for Green Hydrogen and Its Derivatives by Ann-Kathrin Lipponer, Associate Programme Officer at IRENA.

During the presentation on Building Sustainable Value Chains for Green Hydrogen and Its Derivatives by Ann-Kathrin Lipponer of IRENA, participants delved into the crucial issues of green hydrogen in the global energy transition. Based on IRENA's global energy transition perspectives, Lipponer emphasized the imperative to reduce energy consumption and increase direct use of electricity, primarily from renewable sources.

The essential role of green hydrogen and its derivatives, such as ammonia or methanol, was highlighted, projecting that they will constitute 14% of total final energy consumption by 2050. However, Ann-Kathrin Lipponer emphasized the colossal challenge ahead to achieve this goal, requiring a massive increase in hydrogen electrolyzer capacity.

In her analysis of the potential for green hydrogen trade, she identified regions such as North Africa and Sub-Saharan Africa as major players, emphasizing the need to bridge the gap between supply and demand through robust international trade infrastructure. The need for quality infrastructure and appropriate regulatory frameworks was emphasized to ensure the sustainability and transparency of hydrogen value chains.

The presentation also highlighted the potential for international trade in hydrogen and its derivatives, requiring measures such as reducing tariff and non-tariff barriers, as well as targeted and non-discriminatory environmental incentives. The importance of international cooperation and cross-border dialogue was emphasized, as was the need to build the capacities of developing countries.

In conclusion, Ann-Kathrin Lipponer emphasized that the sustainability of green hydrogen extends beyond greenhouse gas emissions to encompass other environmental and socio-economic impacts. It is crucial to involve local communities in the planning and implementation of green hydrogen projects to ensure tangible benefits for all stakeholders involved.
 

Reassessing Hydrogen Trade by Abdullah Fahad, Associate Programme Officer at IRENA.

In his presentation on Reassessing Hydrogen Trade by Abdullah Fahad of IRENA, participants were guided through the issues and opportunities related to green hydrogen export, with a focus on the perspectives of developing economies.

Abdullah Fahad highlighted the potential benefits for developing economies in green hydrogen export, including balancing the trade balance, facilitating national energy transition, and strengthening international partnerships. He noted that countries like Germany, Japan, and South Korea have shown strong interest in green hydrogen, establishing partnerships with countries in Sub-Saharan Africa, Latin America, and the Middle East to meet their growing needs.

However, he also highlighted obstacles, including high costs associated with green hydrogen production and transportation, as well as risks related to political instability and uncertain regulatory frameworks in developing economies. He emphasized the importance of national hydrogen strategies, noting that more than 50 countries have developed dedicated strategies to promote green hydrogen.

Among the key recommendations, he proposed a structured approach to integrating green hydrogen into national energy policies, focusing on strengthening the domestic market and exploring regional value chain opportunities. He also emphasized the importance of a gradual transition to larger-scale green hydrogen projects, as well as the need to create international partnerships to facilitate trade and technological cooperation.

In debate!

During the Q&A session, the importance of a comprehensive approach was emphasized, involving not only organizations active in the field, such as IRENA and UNIDO, but also collaboration between the public and private sectors. As many projects emerge, it is crucial to bridge the gap between supply and demand, as well as to find solutions to finance these projects.

A key point of discussion was on local markets versus export-focused activities. It is crucial to avoid past mistakes, including ensuring that countries that possess the resources also benefit from these initiatives, rather than seeing benefits exported without real advantages for local economies.

Financing mechanisms, investment opportunities, and subsidy options were also discussed. It was emphasized that access to financing is particularly challenging for developing countries due to perceived uncertainty and high costs. However, mechanisms such as the European Hydrogen Bank offer opportunities, although their concrete impact remains to be determined.

In conclusion, the MED-GEM X IRENA webinar highlighted the importance of a holistic and collaborative approach to seize the opportunities offered by the energy transition towards green hydrogen. However, there are challenges to overcome, especially regarding equitable benefit sharing and fair project financing, which will require concerted action from national and international stakeholders.