Colombia has released its $2.5bn national hydrogen strategy, targeting 1GW of green hydrogen production capacity and 50,000t/yr of blue hydrogen production by 2030.

The strategy aims to reduce green hydrogen costs to $1.7/kg by 2030, which would make it competitive with cost projections in the Middle East and Chile. 

The country will also develop a fleet of 1,500-2,000 hydrogen fuel-cell light electric vehicles and 1,000-1,500 heavy vehicles to stimulate domestic demand. A refuelling network of 50-100 stations will be built along the nation’s main traffic corridors. The document also sets a goal for 40pc of the hydrogen consumption of its industrial sector to be green or blue hydrogen rather than grey. 

$1.7/kg – Targeted cost of green hydrogen production by 2030

The $2.5bn of investment is expected to come from the public and private sector.

The strategy envisions blue hydrogen costs remaining consistent at $2.2-2.4/kg throughout the 2021 -2030 period as the falling costs of carbon capture and storage are offset by rises in natural gas prices.

The plans would reduce domestic CO₂ emissions by 2.5-3mn t/yr between 2021 and 2030.

The government says it will support infrastructure and implement certain “market development instruments” without outlining exactly what those might be. “Colombia has the conditions to take advantage of the hydrogen opportunity…thanks to its privileged geographical location and a stable regulatory and political framework, capable of attracting long-term investment,” says the document, released by the Ministry of Mines and Energy. 

Hydro and wind

Green hydrogen production is likely to use hydropower in the south of the country and wind power in the north, where capacity factors can be as high as 60pc.

The strategy envisions three main phases of hydrogen deployment. Between 2021 and 2030, blue hydrogen will be the cheapest option as green hydrogen production is developed. Between 2030 and 2040, green and blue hydrogen production will co-exist. After 2040, blue hydrogen production will stop being cost-competitive and will be phased out.

Colombia has already introduced two laws over the past year aimed at accelerating the deployment of renewables.

The nation’s revised Nationally Determined Contribution to the Paris Agreement aims to reduce greenhouse gases by 51pc by 2030 compared with 2014 levels.

Thirty countries or regions have developed their own hydrogen roadmaps or strategies, with the EU having the most ambitious plans, targeting 6GW of green hydrogen electrolysers by 2024 and 40GW by 2030.

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Author: Tom Young