NEECA convenes meeting: Plan to export green hydrogen to China, Japan will be discussed

ISLAMABAD: The National Energy Efficiency and Conservation Authority (NEECA) has convened a meeting to discuss ‘National Green Hydrogen Strategy (NGHS)’ aimed at formulating plan to export green hydrogen to China, Japan and South Korea.

In a letter to Secretary Petroleum, Managing Director, NEECA, Dr. Sardar Moazzam stated that given the current primary energy/global level, it has become difficult for Pakistan to manage reliable and cost-effective energy supply. The cost-effective solution to this problem is to harness the maximum potential of Indigenous Renewable Energy (IRE) resources in the country. Hydrogen due to its high energy/content, environmental compatibility, storage and distribution and its ability to address intermittency of RE sources, is an essential energy vector for harnessing RE resources of Pakistan.

He added that Green Hydrogen is largely considered as a vital energy resource to support the global transition to a carbon neutral future. In a net zero world, demand for Green Hydrogen could reach approximately 660 million metric tons in 2050, with a share of up to 22% of the total energy demand of the world. Therefore, Green Hydrogen can be easily construed as the fuel of the future for clean and low carbon development and the Capex cost for production of Green Hydrogen will decrease gradually. Therefore, Pakistan should gear up to avail this upcoming opportunity and shift to Green Hydrogen for Decarbonization of Pakistan’s economy by encouraging the indigenous production of Green Hydrogen through Foreign Direct Investment (FDI) projects for production of Green Hydrogen.

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Pakistan can also become the part of global supply chain for export of Green Hydrogen as three of the largest consumers of Hydrogen, ie, China, Japan and South Korea are situated in the range of bankable distance (6000-10,000 kms) from Pakistan for transportation of green hydrogen. China will be world’s largest hydrogen importer with 13 Million Tons by 2030. Japan will spend $21 billion with the goal of using 3 Million Tons of Hydrogen annually by 2030. Korea’s hydrogen imports are forecast to reach 1.96 Million Tons by 2030. Special Investment Facilitation Council (SIFC) in the 8th meeting of its Executive Committee assigned the responsibility of formulation of national green hydrogen production policy, with lead role, to Petroleum Division and the NEECA,“ Sardar Moazzam added.

In this regard, United Nations Development Program (UNDP), on the request of Ministry of Energy (Petroleum Division), has developed a draft National Green Hydrogen Strategy (NGHS) for Pakistan. Secretary Petroleum Division has nominated the Managing Director, NEECA as focal person for further collaboration in the NGHS.

Managing Director NEECA has convened a meeting between the NEECA, Mineral Wing of Petroleum Division and Inter State Gas Systems (IGGS) on April 17, 2024 to discuss/deliberate on NGHS.

Copyright Business Recorder, 2024