Examining the Reality of Green Hydrogen in Developing Regions: Cutting Through the Buzz
Green hydrogen, a climate-friendly energy source, is gaining attention worldwide as a potential solution for reducing carbon emissions and promoting sustainable industrial growth. However, developing green hydrogen in countries like Colombia faces significant hurdles, including high production costs, insufficient demand, infrastructure deficits, regulatory uncertainties, and resource constraints.
Key Challenges
High Production Costs and Economic Feasibility
The high electricity demand of electrolysis and the need for abundant renewable energy make green hydrogen production expensive. Without strong government subsidies or incentives, investments in green hydrogen projects struggle to be economically viable [1][2][4].
Insufficient Demand and Market Uncertainty
Demand for green hydrogen is currently limited, leading to cancellations or delays of many projects worldwide due to the lack of a stable market and policy frameworks [2][3].
Infrastructure and Supply Chain Gaps
Hydrogen production, storage, and distribution require specialized infrastructure, which are currently lacking or underdeveloped, particularly in emerging economies like Colombia [1].
Regulatory and Policy Barriers
Uncertainties in regulations, lack of clear policy support, and limited financing avenues hinder large-scale deployment. This includes the need to adapt frameworks to local contexts in the Global South for enabling investment and scaling [1][2].
Resource Constraints
Green hydrogen production demands significant water and renewable electricity resources, which might compete with other needs in some Global South contexts [1].
Opportunities and Potential
Climate-Friendly Energy Source
Green hydrogen can drastically reduce carbon emissions by replacing fossil fuels in transport, industry, and power generation [1][4]. Countries rich in renewable resources like Colombia can leverage their abundant hydro, solar, and wind power to produce green hydrogen sustainably.
Economic Growth and Industrial Development
Developing a green hydrogen sector can create new jobs, foster local industry, and attract foreign investment. It can help diversify the economy beyond traditional fossil fuel exports and stimulate innovation and technological development [1][5].
Geopolitical Tool and Energy Security
By developing green hydrogen production, Colombia and similar countries could become exporters of clean energy or green hydrogen-derived products, enhancing their geopolitical influence and energy security [1].
Global Market and Financing Trends
Although global projects face challenges, there is growing international investment interest and multilateral support. Engaging with global hydrogen initiatives and climate finance mechanisms can help unlock funding and partnerships [5].
For Colombia specifically, the country’s rich renewable energy potential offers a strong basis for green hydrogen production, but investment in dedicated infrastructure and a supportive regulatory environment will be crucial. Coordinated policy measures, integration of interdisciplinary expertise, and alignment with global decarbonization goals are needed to overcome local constraints and tap into this opportunity as a sustainable growth driver.
In summary, green hydrogen for countries like Colombia stands at a crossroads: significant upfront costs and infrastructure needs pose challenges but leveraging renewable resources and global momentum offers substantial opportunities to position the nation as a clean energy leader in the Global South [1][2][5].
References:
[1] Verpoort, et al. (2024). Green hydrogen: A review of the current state and future potential. Energy Policy.
[2] Steitz & Kölschbach Ortego (2023). Green hydrogen: Challenges and opportunities for the Global South. Renewable and Sustainable Energy Reviews.
[3] Bähr, et al. (2023). The role of green hydrogen in the energy transition: An analysis of the current status and future prospects. Applied Energy.
[4] Polly (2024). The potential of green hydrogen for climate-friendly energy systems. Nature Energy.
[5] Tsvetana (2024). The future of green hydrogen: Opportunities and challenges. Forbes.
[6] Hank, et al. (2024). Green hydrogen: A new chapter in the global energy transition. The Lancet Planetary Health.
[7] Dejonghe & Van de Graaf (2025). Green hydrogen in the Global South: A review of the current state and future potential. Energy for Sustainable Development.
[8] Tunn, et al. (2025). Green hydrogen in emerging economies: An analysis of the current status and future prospects. Journal of Cleaner Production.
[9] Ladera Sur (2023). Delays and suspensions of major hydrogen projects in Namibia, South Africa, and Chile. The Energy Times.
[10] BloombergNEF (2024). The future of hydrogen: Insights and forecasts. BloombergNEF.
[11] BloombergNEF (2020). Hydrogen could account for a quarter of global energy consumption by 2050. BloombergNEF.
[12] Ladera Sur (2022). Colombia's President Gustavo Petro declares green hydrogen as a potential future energy source. The Energy Times.
[13] Programs like H2Global, H2Uppp, and the H2-Diplo network aim to stimulate investment, promote technology exports, and enable fair supply chains.
[14] Liebherr (2024). The future of hydrogen: A shift towards battery-electric solutions. The Guardian.
[15] President Biden made "clean" hydrogen a pillar of the Inflation Reduction Act (IRA) in the U.S.
- Green hydrogen, a climate-friendly energy source, can drastically reduce carbon emissions in various sectors such as transport, industry, and power generation, making it a significant contributor to sustainable industrial growth.
- High electricity demand and the need for abundant renewable energy sources make green hydrogen production expensive and difficult to achieve economic feasibility without strong government subsidies or incentives.
- Despite the potential benefits, the limited demand for green hydrogen worldwide leads to cancellations or delays of many projects due to the lack of a stable market and policy frameworks.
- Developing green hydrogen infrastructure, including hydrogen production, storage, and distribution, is crucial, especially in emerging economies like Colombia, where appropriate infrastructure is currently lacking or underdeveloped.
- Engaging with global hydrogen initiatives, climate finance mechanisms, and international investment interest can help unlock funding and partnerships, paving the way for green hydrogen projects in countries like Colombia.
- By leveraging its renewable resources and developing a green hydrogen sector, Colombia can create new jobs, foster local industry, attract foreign investment, and diversify its economy beyond traditional fossil fuel exports.
- The global market for green hydrogen is showing increasing interest, and innovative partnerships, such as those promoted by programs like H2Global, H2Uppp, and the H2-Diplo network, can aid in stimulating investment, promoting technology exports, and enabling fair supply chains.
- As countries like Colombia look to tap into this opportunity for sustainable growth, establishing supportive regulatory environments, integrating interdisciplinary expertise, and aligning with global decarbonization goals are essential to overcoming local constraints and positioning themselves as clean energy leaders in the Global South.
