Tunisia has unveiled an ambitious national strategy aimed at transforming the countryinto a global leader in green hydrogen production. The North African nation, blessed with abundant solar and wind resources, is poised to leverage these assets to produce clean hydrogen, a versatile energy carrier with the potential to decarbonize various industries.
The strategy outlines a comprehensive roadmap which includes massive renewable energy expansion through significant increases primarily from solar and wind power. This expansion is pivotal for fueling the production of green hydrogen.
Part of the plan involves repurposing existing natural gas pipelines for transporting green hydrogen, facilitating direct connections to European markets. This will not only aid domestic production but also pave the way for new export opportunities for Tunisia.
Bridging local needs and global ambitions, the initial focus of Tunisia's strategy will target the production of green ammonia for fertilizers. The intent here is to cater first to local demands before diversifying for export.
International collaboration is also emphasized, with Tunisia actively seeking partnerships to attract foreign investment. Such partnerships are seen as integral to developing the green hydrogen industry effectively.
“This strategy marks a significant milestone in Tunisia’s transition to a sustainable and low-carbon economy,” stated the Tunisian government representative. “By leveraging our abundant renewable resources and strategic location, we can position Tunisia as a key player in the global green hydrogen market.”
Despite the ambitious goals laid out, the strategy is not without its challenges. Water scarcity is one of the most pressing issues for the region, particularly since hydrogen production requires considerable amounts of water. The development and commercialization of efficient and cost-effective electrolysis technologies will be equally important for the success of hydrogen production.
Shifting the focus to the global scale of hydrogen production, recent reports indicate growing momentum behind clean hydrogen projects across various regions. The Hydrogen Council, based in Belgium, released findings showing the number of global clean hydrogen projects has skyrocketed from 228 to 1,572 since 2020. These projects have matured as they transition more effectively from announcements to implementation.
According to the council, investments committed to these projects also rose substantially, growing from approximately $10 billion across 102 projects four years ago to around $75 billion across 434 projects as of 2024. This highlights not just quantity but also the increasing seriousness with which these projects are being pursued.
The global appeal for hydrogen is on the rise, with most advancements noted within the more developed stages of hydrogen project development. Investments past final investment decision (FID), which are considered the point where projects can secure funding and begin construction, jumped 90%, complemented by 30% growth for projects still under the front-end engineering design (FEED) stage.
The industry is witnessing evolution within its geographical composition, with regions rich in renewable resources like Latin America, Australia, and parts of Africa and the Middle East becoming hotspots for hydrogen project announcements. Currently, about 75% of the hydrogen being targeted for development is renewable, showcasing a shift toward sustainable practices.
While Europe remains at the forefront with the largest number of hydrogen projects (617), North America and Latin America are not far behind with significant project values and numbers. Investments announced from these regions are substantial, with Europe leading at $199 billion followed closely by Latin America's $107 billion.
Despite promising growth, signs indicate certain regions, like Africa, may face reduced capital investment due to the phased nature of major projects which may extend beyond 2030. A notable mention includes substantial projects being split over multiple phases, affecting capital flow.
Jaehoon Chang, President and CEO of Hyundai Motor Company and Co-Chair of the Hydrogen Council, expressed optimism about the sector's progress. "We are pleased to see the industry walking the talk at this transitional moment, as evidenced by the latest insights report. Progress must continue to simplify and make hydrogen more accessible and affordable," Chang remarked.
There are economic headwinds challenging this acceleration, including inflation and rising interest rates, alongside geopolitical tensions which could hinder progress. Regulatory uncertainties and costs associated with renewable energy and electrolyzers have led to project delays but the council believes the time for action is upon the energy transition sector.
Ivana Jemelkova, the CEO of the Hydrogen Council, emphasized the urgency: “Hydrogen is happening. It’s time to drive significantly more investment by 2030 to meet our mid-century targets.” This sentiment echoes throughout the renewable energy community, pushing for integration and significant advancements to fulfill global energy demands sustainably.
At its core, Tunisia’s newfound commitment to green hydrogen production reflects not just local aspirations but aligns with the global energy transition narrative. By maximizing its natural resources, Tunisia not only addresses internal energy challenges but also positions itself for potential leadership on the world stage amid the growing hydrogen economy.
