Recommendations
Green hydrogen projects need to be prioritised in hydrogen development.
Green hydrogen offers a unique pathway to a low-carbon economy. Its water intensity
is competitive with that of grey hydrogen, which has a larger carbon footprint. To
promote this technology, policy makers could offer preferential permits, subsidies,
tax incentives or expedited regulatory approval for green hydrogen projects. Setting
up green hydrogen hubs in water-stressed areas would foster knowledge transfer,
infrastructure development and market growth, and also lower costs by achieving
economies of scale.
Water-related impacts and risks need to be carefully evaluated in hydrogen production
development plans, particularly in water-stressed regions where stringent water use
regulations must be established and enforced for the sector.
Seawater and hydrogen:
Policy makers can thus ensure sustainable growth of hydrogen production, preserve
scarce resources and reduce the possibility of production disruptions due to climate risks
or competition with other end-uses. Key steps are to (1) conduct thorough water risk and
impact assessments and (2) establish stringent usage guidelines and robust enforcement
to safeguard the environment.
Retiring fossil-fuel-based hydrogen plants in favour of green hydrogen should be
prioritised in hydrogen development plans, particularly in areas where water is already
scarce.
This transition reduces both carbon emissions and water use, delivering climate and
environmental gains. Policy makers can speed the process by setting clear retirement
deadlines while bolstering support for green hydrogen through funding, incentives and a
supportive regulatory framework
