Hydrogen vies for the spotlight at Cop

The Ukraine war and continuing energy crisis have given fresh impetus to the drive for a viable global hydrogen economy, writes Stefan Krumpelmann

Hydrogen looks set to play a much more prominent role at next month's Cop 27 climate talks than at previous iterations of the UN gathering, reflecting not only the huge changes in the global energy landscape wrought by Russia's invasion of Ukraine, but also host country Egypt's own ambitions as a clean energy hub.

The focus on hydrogen at Cop conferences has steadily increased in recent years, with 2021's event in Scotland spurring a range of new co-operation agreements, hydrogen roadmaps and project announcements. But the summit in Sharm el-Sheikh on 6-18 November could mark the biggest leap yet, says Jorgo Chatzimarkakis, chief executive of lobby group Hydrogen Europe, because the fallout from the war in Ukraine means many countries — especially in Asia and Europe — urgently need to develop new and ideally low-carbon sources of energy supply.

In Egypt, these countries will have a host that is eager to establish itself as a green energy hub, seeking to capitalise on its ample renewable power generation capacity, proximity to key markets, and the Suez Canal's status as a crucial thoroughfare for global commodity trade. Industry participants expect a flurry of announcements during Cop 27 around specific hydrogen projects in Egypt. The General Authority for the Suez Canal Economic Zone has signed preliminary deals for 15 clean hydrogen and "green fuels" projects — with seven projects potentially worth over $32bn announced in late August alone — and has repeatedly stressed that it would seek to sign final contracts by the time Cop came around.

Further investor interest in Egypt could be generated by the release of the country's long-awaited national hydrogen strategy, which is expected to earmark heavy funding for the sector. The strategy will be published during the first week of Cop, according to a spokesperson for the European Bank for Reconstruction and Development, which has supported Egypt in drawing up the plan.

But project announcements will not be restricted to Egypt. Cop will also see the announcement of an "African European Hydrogen Pact", Chatzimarkakis says, a collaboration focused on developing clean hydrogen projects in Africa.

For Chatzimarkakis, the mission is clear — to make sure that Europe can access low-carbon hydrogen from Egypt as it seeks to advance its decarbonisation strategy and diversify energy supplies away from Russia. But the first offtake agreements for Egyptian projects, which he expects to be announced on the sidelines of Cop, may well be for sales of hydrogen derivatives, such as ammonia, to Asia-Pacific, underlining the global competition for energy resources.

This raises an important question for a Cop summit taking place in Africa, whose people and economies have not been well served by the fossil fuel era. Building a hydrogen economy should focus on African markets first, says Siegfried Huegemann, secretary-general of the African Hydrogen Partnership, an industry association representing companies and organisations from across the region that has stressed that Africa offers ample opportunities to produce renewable hydrogen for domestic consumption.

Although large projects for future exports are bound to grab the headlines at Cop 27, there are other business opportunities focused on domestic markets that are already commercially feasible, according to Huegemann, who notes that fertiliser production or the replacement of diesel-powered generators with hydrogen technology could be early targets.