If green hydrogen is going to play a big role in a new global green economy, we need a working international market and the infrastructure to support it : Green hydrogen and its derivatives — including ammonia, methanol, and e-kerosene — are expected to play a key role in the global energy transition, with the use of these fuels expected to account for around 14% of the world’s overall energy consumption by 2050. However, the implementation of an international market for green hydrogen requires significantly scaled-up sustainable value chains, according to a report (pdf) from the World Trade Organization (WTO) and the International Renewable Energy Agency (IRENA).

International trade policy will have a crucial role to play — and, if done right, it could save a lot of money: Scaling up the production of green hydrogen on a global scale can only take place by “matching regions where these commodities are in high demand with regions benefitting from abundant supply,” the report reads. Cross-border trade could help save some USD 3.7 tn in investment costs by mid-century by connecting high-demand areas with regions that can easily and cheaply generate the renewable energy needed to produce green fuels at a low cost.

Policy makers will have to utilize what’s available in their respective tool boxes: The report encourages policy makers to look into the resources and tools available to them in their economies that could help boost the development of an international market for green hydrogen, which include — but aren’t limited to — “trade policies such as standardisation and certification mechanisms, government support and procurement, rebalancing tariffs, and carbon pricing mechanisms.”

The report’s recommendations break down relevant interventions into three buckets, which it refers to as physical, institutional, and social “enablers” that can help support the development of international markets for these specific green commodities.

The physical enablers laid out by the report focus on the infrastructure that is essential for integrating green hydrogen into global economies, including “renewable energy generators, hydrogen production plants and derivative commodity production facilities,” as well as “infrastructures for the storage, transport, distribution and delivery of hydrogen and derivative commodities.”

Remember: Green bunkering is part of this broader picture, with the Suez Canal Economic Zone — the ground zero for many of Egypt’s green hydrogen and ammonia projects — previously saying that it wants to roll out green methanol bunkering services before 2027 after receiving requests to supply ships with green methanol and gas. Blending green hydrogen into our existing natural gas pipeline infrastructure is also an option to exploit as we build out green hydrogen-specific infrastructure.

The report recommends a “holistic” approach to ensuring the availability of resources when planning for infrastructure development — one that takes into account the supply of renewable electricity, water, and carbon. It also calls for the prioritization of distribution infrastructure to “ensure market access for producers,” and emphasizes the need for developing diversified supply chains across related sectors.

Institutional enablers also have a big role to play: Nascent regulatory frameworks will need to be developed further in order to implement a global green hydrogen economy, the report notes. Governments will need to consider a whole range of different policy measures and interventions — including carbon tax credits, emissions trading systems, electrolyser subsidies, investment incentives, the allocation of state-owned lands, and demonstration applications — in order to create the optimal conditions for the growth of domestic and international green hydrogen markets.

On the global scale, developing shared standards is key: Given that the market is in its infancy, there is as of yet no clear alignment on global standards and certification requirements. These are needed to ensure that common definitions of what constitutes “green” hydrogen are being met across international borders.

Developing green hydrogen markets could bring about considerable social benefits: Developing a global market for green hydrogen and its derivatives could lead to significant job growth and overall socioeconomic progress — but will necessitate training local workforces to work in the sector, the report notes.

Emerging markets stand to benefit: The report estimates that further development of the global green hydrogen market could unlock around 22 mn jobs by 2050 — half of which would be in emerging markets and developing countries.

Where Egypt stands: Our significant experience in gray and green hydrogen and ammonia is an optimal starting point for establishing a thriving low-carbon hydrogen economy. The country also has substantial renewable energy capacity, a strategic geographic location in terms of proximity to European countries with high green hydrogen demand, well-developed port infrastructure, and access to global maritime traffic through the Suez Canal.

Looking ahead: Egypt is poised to be a relatively cost-competitive producer in the global green hydrogen and green ammonia markets by 2030 as the costs of electrolyzer systems and financing — as well tariff prices for renewable energy generation — fall. While our green fuel economy still has room to grow, we seem to be well-positioned to take advantage of a global green hydrogen market once it emerges.

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