European Hydrogen Week 2023: UNIDO representative Christophe Yvetot talks to EU Today about Hydrogen, the energy source of the future

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My first question was about the role of UNIDO itself, and how to prioritise hydrogen as the source of energy of the future. I asked why the decision was made to prioritise it now, and how will this be used in future industrial developments. How would this go forward?

He told me, “I think that hydrogen is the current solution, but there will be many other different solutions for decarbonisation that can coexist. First of all, you have sectors that are energy-intensive.

 “For example, steel and cement, glass, or other products that require a significant amount of fossil energy for their production.

 “Moving them towards green hydrogen could be a solution. In this space, a big demand is expected from Europe, the US, and  Asia. Many countries are preparing for this, but of course we still don’t know how it will stabilise or which solution will be the winner.

“”In the opening session of the European Hydrogen Week 2023, European Commission President Ursula von der Leyen and Commission Executive Vice President responsible for the European Green Deal, Maros Sefcovic gave a good sign to the private sector because that is where most of the investment in hydrogen will come from. However, there’s also a need for public investment.

 “The role of UNIDO is somehow different because we are not only focused on the European Union but on the needs of our 172 member states. 

“To support them, we have established ” UNIDO’s Global Programme for Hydrogen in Industry which offers unique opportunities for net-zero industrial development in developing countries with abundant renewable power potential. It can pave the way for job creation, skills upgrading, investment mobilization, energy security, and participation in global hydrogen trade.

“However, developing countries and transition economies currently face several challenges that impede the establishment of a sustainable hydrogen economy because of the absence of a domestic green hydrogen market and the necessary infrastructure, as well as a lack of access to global trade. This prevents countries from taking advantage of the opportunities that hydrogen offers.”

What obstacles would developing economies face in this transition?

“One significant challenge hindering industrialisation in Africa is the high cost and intermittent nature of energy supply, often leading to extended periods without electricity, sometimes lasting four hours or more.

“Increasing investments in renewable energy generation would improve energy access with a reliable and affordable local renewable energy source and would be immensely beneficial in lowering the price of excess renewable energy for hydrogen production.

“In Latin America, the situation is, in some way, different. There, the electricity grid is primarily renewable, with some countries like Costa Rica having almost a 100% renewable electricity system.

“Nevertheless, the main barriers to overcome in the region are the lack of regulatory frameworks, and an enabling environment for the private sector.

“Many countries have identified transportation as the sector to decarbonize via green hydrogen. However, the main obstacle at the moment is the infrastructure investment needed.

“Furthermore, exploring the option of exporting could open up new avenues for generating revenue. In North African countries, such as Morocco, Tunisia, Algeria, or Egypt, desalinisation is also part of the green hydrogen value chain.

“A proven technology that can be powered by renewable energy and provide clean water for agricultural purposes as well as for green hydrogen production. 

“Today, ammonia is mainly used as a mineral fertilizer, but its potential extends far beyond this role. Clean ammonia, manufactured with low-carbon or renewable hydrogen, is a significant step to decarbonize both the agri-food value chain and the maritime shipping sector.”

And here in the EU? 

“On July 22nd, 2023, during the 14th Clean Energy Ministerial (CEM14) Meeting, a historic joint declaration was approved by Australia, Brazil, Canada, Chile, Germany, Japan, Saudi Arabia, South Korea, the Netherlands, the United Arab Emirates, the United Kingdom, United States, Uruguay, and the European Commission on behalf of the European Union.

“These governments have united under the CEM’s flag with one aim: to accelerate international hydrogen trade. The achievement of this notable milestone was highlighted with the introduction of the International Hydrogen Trade Forum (IHTF).

“This forum aims to serve as an exceptional platform for facilitating discussions among a diverse range of governments concerning the emerging international hydrogen market.

“We value cooperation, like the one we have with the European Union for almost 50 years and joint development action in more than 100 countries.

“Also, like the one we recently formalized with Hydrogen Europe. Many of our 172 member countries are enthusiastic about engaging in clean hydrogen production, leveraging their extensive renewable energy capabilities. This needs investments, a technological infusion, and the transfer of knowledge from developed countries to developing countries.

“We want to make sure that market uptake happens in a sustainable way, ensuring prosperity and job creation for producing countries.”

When we’re talking about developing nations subsidising hydrogen extraction in those countries would surely help to wean them off of expensive imported fuel and also, importantly, help then circumvent the politicisation of energy supply. How do you see that?

“For sure, this is what we are looking for : decarbonisation, as it is the key objective of the Paris Agreement.

 “We are not there yet; we need to accelerate. So, what we do is also try to mobilise as much of various countries and the private sector as possible.

 “We have launched within what we call the Clean Energy Ministerial, the ‘Industrial Deep Decarbonization Initiative’, that is focused on the biggest emitters, such as steel, cement, etc.,  and for which we consider that, in the medium to long term, green hydrogen could be a credible alternative to fossil fuels. 

“As you’ve pointed out, this would empower many countries to reduce their reliance on fossil fuel sources.

“Of course, there are many factors that might indicate to the private sector that this is moving. Such an indication could be a major public investment, using public seed funding to leverage private investments.

“The EU has the ambition to produce and import significant quantities (10 million tonnes respectively) of renewable hydrogen by 2030.

“This will inevitably create a trading market between EU and exporter regions such as North/Southern Africa, Middle East and Latin America. Certifications and standards are thus needed to ensure the market to function properly.

“That way, a flexible hydrogen energy market mechanism could be created, for example, for the European Union.

 “Obviously, private sector investors are waiting for a sign of stability in the medium to long term. They cannot invest a lot of funding and develop their capacity if the market is at immature stage, as it is now. 

“The European Hydrogen Bank is precisely an EU instrument to reduce the cost gap in the EU between renewable and fossil hydrogen and bring capital costs down, through pilot auctions for renewable hydrogen production.

“If you went to the European Hydrogen Week 2023 on the opening day, you could see all European industry present. And you could see many different stands exhibiting a vast range and variety of systems and products, like  trucks and vehicles,  and many different parts of this sector, which is an “industry of industries.

“You will find a diverse array of tools and solutions in that space. When it comes to supporting developing nations, we have the capability to offer technical solutions, policies, and business frameworks. At some point, there will be a need for public investments coming from those countries themselves and also from partners or international funding. 

“To prepare developing countries for a just hydrogen transition, it is essential to address identified barriers and prioritize social and environmental considerations. This can be achieved through the guidance, support, and development of market policies, standards, skills, financing instruments, innovation, and effective coordination among key stakeholders.”

One of the takeaways from European Hydrogen Week 2023 was the evidence of just how mature this sector is becoming. So clearly hydrogen is on its way.

“Despite the existing positive and growing momentum on hydrogen uptake, it is also becoming clear that the current growth rate is not strong enough compared to what is required for the net-zero trajectory, at least not by 2030. 

“Many projects are experiencing difficulties  reaching financial closure. Only 23 sizable clean hydrogen projects were operational as of 2022. Nevertheless, there is an optimistic view, and UNIDO is supporting developing countries to be part of the global picture.

“We’re now starting to do it on a more industrial scale.

“It was Lionel Jospin who said France has not been particularly blessed with energy sources, with coal and oil. There’s some coal, but not much. But there’s lots of water and oxygen, of course.

“France is is going for decarbonised hydrogen based on nuclear power.

“This strategic direction gained further momentum when they recently discovered a potential deposit of naturally occurring hydrogen, or white hydrogen, in the Lorraine region.

“There’s a substantial reserve of what some refer to as ‘white or natural hydrogen,’ in contrast to blue, grey, and green varieties. Some researchers suggest that natural hydrogen might be available in all countries.”

One of the advantages of de-industrialization was removing pollution because the old foundries and the coal mines produced so much pollution and this pollution was going into the atmosphere and into the water cycle. Are we now foreseeing a re-industrialisation but with a clean fuel?

“This is exactly what we’re looking for.

” UNIDO is one of the  promoters of the circular economy and clean technologies globally.  

“Today, we have access to green technologies that provide us with effective solutions to combat pollution.

“You might remember that thirty years ago, the main focus of the international community wasn’t on climate change; instead, people were worried about the ozone layer disappearing.

“There were fears that it could endanger humanity, similar to today’s concerns about climate change.  It was a significant concern, much like what we face with climate issues now.

“For this reason, the international community established an international instrument, the Montreal Protocol, with a multilateral fund – the Multilateral Fund for the Montreal Protocol.

“UNIDO has been one of the main implementers of this protocol, and after 20-30 years, the issue is almost solved. By 2040, it is expected that the ozone layer will be completely  intact. It seemed impossible at that time, but we made it happen with clear objectives and access to finance. 

“Who would have imagined that the electric car would be the standard in the future? Now, it’s almost there.” 

Read also: European Hydrogen Week 2023: hydrogen in the energy transition

Mr. Christophe YVETOT is the UNIDO Representative to the European Union, the European Investment Bank, the Organisation of ACP States, Belgium and Luxembourg in Brussels.

An international lawyer, he has over 25 years of experience in international development in various organisations including as representative of UNIDO to the European Union, to Senegal and the Sahel, as policy officer in the office of the Director general in the International Atomic Energy Agency (IAEA) and Chief of Cabinet in the Organisation Internationale de la Francophonie (OIF).

He has contributed to many international conferences, workshops and meetings as moderator and speaker as well as to international reports and publications.

 

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