Costa Rica - Green Hydrogen

Green Hydrogen Production in Costa Rica. Credit: Ad Astra Rocket

Costa Rica aims to reach carbon neutrality by 2050. To meet its decarbonisation goals, the country’s biggest challenge lies in moving away from fossil fuels and their derivatives in key sectors such as industry, transport and agriculture. The high potential for renewable energy in the country – Costa Rica has produced more than 98% of its electricity in the last six years through renewables – implies there is a clear opportunity for green hydrogen production to accelerate Costa Rica’s trajectory towards net-zero in hard-to-abate sectors.

The objective of the NSP is to induce a transformative change towards the application of hydrogen as an energy carrier and chemical input. Importantly, the hydrogen production supported by the NSP will be drawing only from renewable energy sources within Costa Rica. The Technical cooperation (TC) component of the NSP will support the national government in creating enabling conditions for the production and consumption of green hydrogen and in the identification and development of business models for the deployment of hydrogen in different sectors, including the development of pilot projects. Meanwhile, the Financial cooperation (FC) component is expected to include targeted incentive schemes for hydrogen production facilities and off-takers in the industrial and agricultural sectors, combining commercial financing with concessional funds.

The availability of green hydrogen as well as financial instruments and an enabling policy framework will facilitate the use of green hydrogen for various – primarily domestic – applications in industry (metallurgy, cement, glass), and agriculture (sugar, coffee), helping decarbonise Costa Rica’s economy.

Facts
Partner MinistriesMinisterio de Ambiente y Energía (MINAE) / Ministry of Environment and Energy
NAMA Support OrganisationDeutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Implementing PartnersInternational Finance Corporation (IFC), Secretaría de Planificación del Subsector Energía (SEPSE), MINAE, Hidrógeno Verde S.A.
StatusDetailed Preparation Phase
CallAmbition Initiative - Round One

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