'Modest progress' | Governments and green hydrogen customers 'must ramp up demand signals': Irena
Social acceptance of renewable H2 is also ‘critical’ to scale-up, says new Irena report
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The intergovernmental body’s report, which was based on the findings of two meetings of key international stakeholders across its membership base last year, noted that progress on incentivising demand for green hydrogen has been “modest”, arguing that policymakers and potential customers need to send stronger “collaborative demand signals” to investors and prospective producers.
“Identifying pre-defined offtakers is crucial,” it said, but the industry also needs more robust demand-side incentives such as those offered by the EU’s Renewable Energy Directive and European Hydrogen Bank.
‘More than just emissions’
In addition, project planners must “account for more than just emissions”, the intergovernmental body warned.
“Environmental, social and governance aspects of green hydrogen production will impact the long-term viability and success of green hydrogen value chains,” the report read.
“Fostering community involvement and thus bolstering social acceptance, is critical in the implementation of new energy technologies,” it explained. “Especially for those that involve large-scale infrastructure development, such as that required to meet future demand for green hydrogen.”
The organisation singled out Panama as an example of best practice in this regard, noting that the central American country had integrated social acceptance into its green hydrogen strategy.
“Recognising the importance of involving local communities, Panama’s strategy ensures that discussions with communities take place before project implementation,” Irena said.
“It prioritises engaging with communities that are likely to be neighbours to green hydrogen facilities. This essential acknowledgement of the importance of dialogue and community involvement might also be extended to international collaboration, with a focus on the involvement of regional organisations and agencies dedicated to green hydrogen.”
As a result, Irena plans to map existing accounting standards, methods and certification schemes in 2024, focusing on green hydrogen-based ammonia, methanol and steel produced by direct-reduced iron.
The organisation also noted the ramp up of government-level strategies over the past year, and called on policymakers to ensure they are updated to keep pace with the rapid evolution of the green hydrogen sector.
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