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