Getting indigenous groups involved in green hydrogen projects from the get-go could be the secret to their success, writes Pamela Machado
As green hydrogen development gathers pace, project developers are treading carefully in an area which has historically been an Achilles heel for international energy projects — engagement with indigenous communities.
Last week saw an alliance of hydrogen groups including the Green Hydrogen Association and Latin American platform H2LAC issue a joint agreement on the responsible deployment of renewable energy-based hydrogen.
The document sets out principles for developers to streamline hydrogen development while "raising the standards of conduct" for firms and governments. These principles include "deep engagement and collaboration" with local communities "from the initial pre-feasibility phase through to operations".
Green hydrogen projects do not present quite the same problems for indigenous communities as coal mines or oil fields, but they do make demands on critical resources such as land and water — and will do so increasingly as the sector scales up. That creates a strong case for early engagement with indigenous communities, to secure support, identify issues for resolution and, in some cases, bring them on board as investment partners.
Australia's Aboriginal Clan Energy Partnership is a recent example of such practice. It is co-owned by climate investment firm Pollination and aboriginal groups Kimberley Land Council, Balanggarra Ventures and MG Corporation, all of which hold a 25pc stake each. The enterprise aims to develop large-scale renewable hydrogen and green ammonia production in East Kimberley, Western Australia. "If we can get this right, this could be a model that could be replicated throughout Australia and around the world," MG Corporation executive chair Lawford Benning says.
Canada's national hydrogen strategy specifies that indigenous groups should be among those who benefit from a move towards large-scale use of hydrogen. One way to ensure this is through co-ownership, project developers say. But this can also benefit developers by helping them "avoid reputational risks", non-profit Indigenous Peoples Rights International executive director Joan Carling says.
"Parts of our industry have become better at stakeholder consultation," Pollination head of projects Rob Grant says. "But there is still very much an element where the developer decides what they want and then sets out to persuade indigenous people to consent, participate or even just not oppose." If environmental assessments or the project consent process are executed poorly or inadequately, they can lead to problems and delays. But when all partners are involved from the start, it helps "create a project that can be executed faster and with lower risk", Grant says. Local groups "know and understand where things should or should not be built". And as a project advances, it becomes easy for communities to support if it is "their project", he says.
Not worth the wait
Developers should not wait until their plans approach gigawatt-scale to think about more active engagement with indigenous groups. Even promoters of smaller hydrogen projects are running into some community resistance, according to the 2023 update of the Renewable Energy and Human Rights Benchmark report, produced by UK-based Business and Human Rights Resource Centre.
The report noted that French developer HDF Energy's 140MW solar-to-hydrogen project in French Guiana is facing opposition from indigenous groups, which say the consent process has not been carried out properly. They do not oppose the project itself, but are against its planned location, which could compromise their hunting and fishing activities, the report says. The project "satisfies planning rules and technical criteria", a HDF spokesperson told Argus.
