Boston Consulting Group (BCG) talked about the greenhouse gas (GHG) reduction potential of hydrogen.
BCG said that hydrogen could decrease 5 to 6 Gigatons annually through applications in industries such as electricity, chemicals, fuels, steel and iron; this may represent up to 30% less of its emission, La Republica reported.
It is important to remember that green hydrogen in Colombia is a decarbonization alternative for different sectors such as mining and transportation.
The country’s current production is only 140,000 tons, while world production is 70 million tons.
Alvaro Martinez de Bourio, Manager of BCG’s energy practice, said that the company estimates that at US$2 per kilogram of hydrogen, several applications are likely to be economically competitive by 2030.
However, producing a kilogram of hydrogen from hydrocarbons requires between US$1 and US$2, while making it from renewables is worth between US$4 and US$8.
“Hydrogen is produced in small quantities, with high costs. The focus is to increase production, so we need to get to a point where producing hydrogen is the same price as traditional energy,” Erika Thompson, Australian Ambassador to Colombia.
Colombia has great bases such as its water potential (eight times higher than the world average) and wind power.
Cesar Barraza, research professor at the Universidad de la Sabana said that with funding from MinCiencias, they are developing another roadmap for the UPME where hydrogen transition scenarios will be taken into account.
Bottom-Line: Hydrogen is a bet for the long term, but authorities must create the legal bases to encourage the growth of this important resource.