ISLAMABAD: Petroleum Division (PD) has prepared a concept note to develop a wide roadmap for green hydrogen in the country, to be used as fuel for transportation, power generation and industrial processes.
The energy sector of Pakistan is characterized by a high dependence on imported fossil fuels, which imposes a heavy burden upon the national exchequer, and the country remains confronted with the challenge of maintaining sustainable, affordable, and reliable energy supplies to meet the increasing energy needs.
The country imports a significant portion of its oil and gas requirements, which is subject to volatile international prices, making it difficult to predict the energy costs. This has resulted in high energy costs for consumers, which can be a barrier to the economic growth of the country.
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At the same time, burning large volumes of fossil fuels to meet energy needs makes the energy sector one of the major contributors to emissions of greenhouse gas (GHGs), having a 46.4% share of overall GHG emissions of the country.
Sharing the concept note, with different stakeholders including, M/s GIZ, Federal Ministry of Economic Cooperation and Development, Germany, World Bank, UNDP, Ministry of Climate Change, etc., Secretary Petroleum, in a letter stated that hydrogen is increasingly being recognized as a highly promising energy source and abundant energy carrier with the potential to fundamentally transform the energy sector.
Hydrogen has the potential to play a significant role in enabling the transition for Pakistan to a low-carbon economy by providing a versatile, low/ zero-emission energy carrier that can be used in a range of applications.
Incorporating hydrogen into its energy mix could aid Pakistan in expanding its nature-based solutions, reducing its fossil fuel imports and switching to cleaner/ renewable energy resources, and achieving its targets as stated in the NDC of the country, he added.
Further, Pakistan, being strategically located, i.e., at the crossroads of South Asia, the Middle East, and Central Asia, has the potential to become a major exporter of hydrogen and related technologies.
Keeping in view the country’s current energy needs, developing a long-term hydrogen development strategy for Pakistan would prove beneficial with the goal and target of developing hydrogen to create a more sustainable, resilient, and prosperous energy system.
The development of hydrogen in Pakistan would require significant investment and support from the international community and the role of developing partners becomes very significant which can leverage access to climate financing for Pakistan.
Ministry of Energy (Petroleum Division) has sought support from other Ministries in its endeavour to develop Pakistan as a hydrogen-based economy.
The strategy will identify key sectors where hydrogen can be used an energy source. For instance, hydrogen can be used as fuel for transportation, power generation and industrial processes. The next step is to identify potential venues for hydrogen development, which could include areas where renewable energy sources such as wind and solar are abundant, as well as, areas with the existing infrastructure that could be repurposed for hydrogen production, storage and distribution.
According to the concept paper, once potential venues have been identified, feasibility studies should be conducted to assess the viability of hydrogen development in those areas. This includes assessing the availability of renewable sources, the cost of production and distribution and the potential demand for hydrogen.
Attracting investments is critical to the success of hydrogen development. This includes developing a comprehensive business plan that outlines the potential return on investment for investors, as well as, providing incentives such as tax credits and subsidies to encourage investment.
Petroleum Division has proposed that the government should partner with private companies to develop and implement the hydrogen strategy which includes providing funding for research and development, as well as, providing incentives for private companies to invest in hydrogen-related projects.
Copyright Business Recorder, 2023
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