Central American and Caribbean Countries Analysis of Hydrogen Economy
Published on : Nov-2022
Hydrogen economy involves the use of hydrogen mainly for heat, also for seasonal energy storage, hydrogen vehicles, and long-distance transport of energy since it is a low carbon fuel. Hydrogen is present in abundance on earth which is highly flexible and efficient also known as a powerful clean energy carrier that emits only heat, electricity, and water. The use of hydrogen would eliminate fossil fuels and control the levels of global warming.
The supply of hydrogen is now a major business around the world to industrial users. Demand for hydrogen is continuously increasing since 1975 with 6% of global natural gas and 2% of global coal for hydrogen production.
Source: International Energy Agency
Central American and Caribbean region is proceeding towards developing hydrogen roadmaps, decarbonizing transport, exporting clean electricity while cooperating with several other countries. Varied development projects in the region lead to several opportunities as well as challenges to bring hydrogen to the public efficiently and safely. Climate change in the region makes it vulnerable to projected and observed adverse effects due to its distribution of population and infrastructure, geographic location and dependence on fragile natural resources for livelihoods and economic activities, thus, increasing the need for hydrogen adoption in various industries in the region.
“Hydrogen plays a pivotal role in Chile, accounting for 21% of reductions in the planned emissions. The country has abundant renewable energy capacity to generate 70x the electricity consumed by the country and plans to coordinate with actors along the value chain in order to make the pieces of the green hydrogen puzzle work together in a coordinated way. In order to jumpstart hydrogen’s development in Chile”
- The World Energy Council
Hydrogen consists of high energy and the engine that burns pure hydrogen generates approximately no pollution. Fuel cells operate best on pure hydrogen and is a promising technology as a source of electricity and heat for buildings and source of electric power for electric motors. Energy carrier delivers and moves energy in a functional form to consumers and hydrogen could join electricity as a significant energy carrier. Hydrogen can also be transmitted like electricity to the required locations.
As of 2014, the top 5 countries include Trinidad and Tobago, Dominican Republic, Cuba, Honduras, and Jamaica. Among 11 countries Trinidad and Tobago is the top country by the CO2 emissions from electricity. CO2 emissions from electricity in Trinidad and Tobago was 62.13 %.
Source: Knoema
As of 2014, Costa Rica is the top country among 11 countries with higher levels of CO2 emissions from transportation. CO2 emissions from transportation in Costa Rica accounted for 68.62 %. El Salvador, Haiti, Nicaragua, and Guatemala are among top 5 countries in the region with higher CO2 emissions.
Source: Knoema
Fatpos Global predicts that the hydrogen economy of the Central American and Caribbean Countries is anticipated to register a significant CAGR in the coming decade. Looking at the current business scenario and the future prospects out of such circumstances, the oil and gas sector investments in hydrogen are expected to boost the hydrogen economy and be a significant part of the energy mix in the future. Looking at the current circumstances, the rising CO2 emissions and levels of global warming raise the need for incorporation of use of hydrogen energy in electricity generation, transportation and energy storage.
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