Hydrogen is unique, compared to other energy storage solutions, because it has
In 2019, as part of the BID Lab project ATN/ME-16972, ‘Path to Decarbonization: Promoting the Hydrogen Economy in Costa Rica,’ the Costa Rican Hydrogen Alliance was established. Initially driven by various private stakeholders interested in fostering the hydrogen ecosystem in Costa Rica as a sustainable energy storage medium for transportation and industrial applications, the Alliance aims to contribute to the country’s efforts towards economic decarbonization.
The primary goal of the Alliance is to become a coordination mechanism for the hydrogen ecosystem, positioning itself as a facilitator of the energy transition and advocating for sector support schemes and the adoption of public policies.
As an organization, the Alliance seeks high-level technical expertise to quantify the impacts and benefits of hydrogen in the country, as well as to develop proposals for regulatory frameworks that facilitate the development of the hydrogen market.
Hydrogen is going to have a major role in replacing fossil fuels worldwide. Hydrogen is unique, compared to other energy storage solutions, because it has a greater storage capacity, longer unit life, is fast-charging, and the only by-product is pure water. AASEA has proven that green hydrogen production in Costa Rica is possible and practical. Expanding the hydrogen economy throughout the region will stimulate job opportunities, reduce dependence on oil imports, and move Costa Rica closer to becoming a carbon-free country.
This process, however, is not exclusive to Costa Rica, the infrastructure we have put in place in Costa Rica can be replicated worldwide, along with the economic and environmental benefits that accompany it.
Our goal at AASEA is to develop and implement clean energy solutions tailored to our customers. We chose hydrogen as our specialization because of its extraordinary power to mass ratios (kW/kg) and its ability to scale up. Those two things give it an advantage over other electric technologies when it comes to heavy duty cargo transportation and larger scale stationary operations, two major contributors to the global carbon-footprint. By focusing our attention on technology that can solve larger scale industry problems, our efforts will aid in the diversification of available green energy solutions, hopefully making the shift to a carbon-free society a little smoother.
The following is some informational one-pagers we have put together regarding hydrogen technology.
Hydrogen Energy Storage Solution
Hydrogen Fuel Cells Overview
Hydrogen and the Costa Rican Economy
AASEA’s Hydrogen Firsts in LATAM
AASEA’s Demonstration Ecosystem
Here are some links to other reputable sources of information and industry partners.
International Partnership for Hydrogen and Fuel Cells in the Economy
International Energy Agency
Fuel Cell and Hydrogen Energy Association
Costa Rica’s Hydrogen Alliance
International Renewable Energy Agency
Disclaimer: This article was written by Constanza Meneses (GIZ) with the support of Natalia Romero (GIZ) and has been slightly adapted for the NAMA Facility website with permission from the “Costa Rica – Green Hydrogen” NAMA Support Project (NSP).
Costa Rica is a pioneer in green hydrogen issues and continues to make successful progress towards its goal of decarbonisation by 2050. After participating in theAmbition Initiative Callof the NAMA Facility, the NSP "Costa Rica – Green Hydrogen" was selected to receive funds for green hydrogen for a decarbonised economy in the country.
The project foresees an investment of EUR 25 million for the production and application of innovative technologies that have the purpose of reducing emissions from greenhouse gases (GHGs) and generating a positive impact in both social and economic areas, as well as for climate protection.
Ad Astra Rocket Company, a company originally dedicated to the development of plasma engines for space aircraft, has a branch in the province of Guanacaste where green hydrogen has been produced and researched since 2011. The company runs a complete value chain of green hydrogen, from its production with renewables and compression, to its storage and application. While the company aims for hydrogen to be used for cars and buses, it is limited to the commercial use of a few vehicles.
From this premise, the NSP proposes the following idea: to replicate what exists on a larger scale, using the knowledge and experience acquired by Ad Astra Rocket Company, which has been enhanced through the Hydrogen Alliance, a Costa Rican think tank that brings together companies primarily from the country’s private sector.
The NSP aims to promote the development of green hydrogen, that is, to use the country’s green electricity (99.9% from renewables in 2021) to produce green H2and to use in various sectors of the economy. The project will begin with domestic applications such as transport, primarily heavy trucks, but with the purpose of eventually implementing hydrogen and its derivatives in railways, maritime transport and aviation. In addition, applications in the metallurgy industry are planned, as well as other sectors in the medium term, such as cement, glass and agriculture.
“Besides promoting H2application in transport, we want to see where hydrogen is already being used in the industrial sector and highlight the importance of its origin, since it is mostly not green H2and that entails two problems: the GHG emissions in other countries are perpetuated and the dependence on imports continues” Claus Kruse (GIZ), interim director of Costa Rica – Green Hydrogen
The project is based on a financing model through national and international banks with credits and subsidies, as well as a package of complementary technical assistance measures to ensure that those who want to produce green hydrogen, buy fuel cell electric vehicle (FCEV) trucks, or adapt their industry to the use of green hydrogen can do so by accessing funds and become early movers.
In the coming months, the NSP will work on the so-called “Detailed Preparation Phase” (DPP), which involves the formulation of the complete project. Thus, although the project concept has been deemed suitable to the goals of the NAMA Facility, a detailed preparation is now expected with a deadline of 10 months to present the project and its implementation strategy to the Donors of the NAMA Facility. Upon final approval, the implementation of the project is foreseen to start by mid/end-2023.
In this context, Costa Rica has a great comparative advantage, since 99.9% of its electricity comes from renewable sources. This is an exceptional case, as it greatly facilitates the current production of hydrogen to be green. Thus, the country is ahead of the others that still have to boost the production of renewable energies to achieve a truly green hydrogen.
However, even though the country’s electricity comes mostly from renewable sources, total GHG emissions are still estimated at 10.9 million tCO2in 2019. The transport sector with medium and heavy trucks, buses and an ever-increasing number of private vehicles is responsible for more than 50% of total emissions. This places even greater importance on the decarbonisation of the transport sector to achieve the country’s objectives.
Overall, Costa Rica has optimal conditions to decarbonise its economy. The main goals of its national policies and its Hydrogen Roadmap is to clearly define the intention for green hydrogen as a leading fuel source for energy and transport sectors. It is considered as an energy vector with the potential to help the decarbonisation of areas that will otherwise continue to depend on fossil fuels or grey hydrogen.
Currently, the country is working on the development of a National Hydrogen Strategy, which will seek to establish strategic lines for the development of a green hydrogen market nationally and internationally in order to attract private investment and generate business opportunities. This strategy will include indicators and targets, as well as the definition of strategic interventions and will be accompanied by an action plan with the identification of critical activities and risk analysis. Thus, if Costa Rican policies continue to move forward with this approach, as they have done in the past, they could lead to the beginning of an energy transition with immense impact.
Learn more about Costa Rica – Green Hydrogen.
The NAMA Facility is a joint initiative of the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), UK’s Department for Business, Energy and Industrial Strategy (BEIS), the Danish Ministry of Climate, Energy and Utilities (KEFM), the Danish Ministry of Foreign Affairs (MFA), the European Union and the Children’s Investment Fund Foundation (CIFF).
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