World Bank unveils initiative to help finance clean hydrogen projects in developing countries
The Hydrogen for Development Partnership will also offer technical assistance and help with creating regulations and business models
The World Bank Group announced a new global initiative to help finance the deployment of low-carbon hydrogen in developing countries at COP27 in Egypt yesterday.
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The Hydrogen for Development Partnership (H4D) will “help catalyze financing for hydrogen investments” from both public and private sources over the coming years, said the banking group, which provides loans and grants to low- and middle-income countries.
“The partnership will foster capacity building and regulatory solutions, business models, and technologies toward the roll out of low-carbon hydrogen in developing countries,” said the group in a statement. “Through H4D, developing countries will gain further access to concessional financing and technical assistance to scale up hydrogen projects.”
“Our new hydrogen partnership will enable developing countries to prepare low-carbon hydrogen projects and boost energy security and resilience for their people while lowering emissions.”
The statement explained: “For low- and middle-income countries, low-carbon hydrogen has the potential to generate export revenues, creating a value-added export sector that generates jobs for skilled labor and helps promote food security, since hydrogen can be used to produce ammonia, a key component of fertilizers.
“It can also generate energy capacity to meet local needs, including decarbonizing in-country manufacturing and smelting sectors, and provide energy access to remote populations.”
The main activities of H4D will include “convening international cooperation to increase the knowledge base in low-carbon hydrogen technologies for developing countries” and fostering collaboration with the private sector on clean hydrogen projects, the group said.
“Low-cost, low-carbon hydrogen fuel can become a viable replacement for diesel in transportation.
“Hydrogen also has the potential to provide long-term energy storage options and bolster the reliability of renewable energies with variable outputs, like solar photovoltaics and wind.”
The World Bank Group consists of five organisations: