PANAMA, Aug 09 (IPS) – In 2021, the Panama Canal welcomed a French experimental ship on a world tour, the Energy Observer, the primary electrical vessel powered by a mixture of renewable energies and a hydrogen manufacturing system based mostly on seawater.
The vessel exemplifies Panama’s aspiration to turn out to be a regional hub for hydrogen, probably the most ample fuel on the planet, however faces the existential determination of whether or not to generate it from renewable power or fossil fuel.
This Central American nation of simply over 4 million individuals is developing, albeit belatedly, the primary section of its roadmap to materialise the National Green Hydrogen and Derivatives Strategy, accepted in 2023.
For Juan Lucero, coordinator of the Ministry of the Setting’s National Climate Transparency Platform, inexperienced hydrogen could be the best choice, given its renewable power, strategic place and the affect of worldwide insurance policies to scale back greenhouse fuel (GHG) emissions in sea transport.
“Panama has pure fuel, and firms are eager about participating on this enterprise, on this case blue hydrogen. If Panama desires to be a hub, then blue is an effective possibility,” he advised IPS.
He confused that “for Panama, it has all the time been a precedence to supply companies, to be an power hub. Now we have custom, expertise, historical past, as a hub for supplying bunker (a petroleum distillate) ships. The concept is to attain that transition.”
The manufacturing of hydrogen, which the fossil gasoline business has been utilizing for many years, has now been reworked right into a colored palette, relying on its origin.
Thus, “gray” comes from fuel and will depend on adapting pipelines to move it.
By comparability, “blue” has the identical origin, however the carbon dioxide (CO2) emanating from it’s captured by vegetation. Manufacturing relies on steam methane reforming, which includes mixing the primary fuel with the second and heating it to acquire a synthesis fuel. Nevertheless, this releases CO2, the principle GHG accountable for world warming.
In the meantime, “inexperienced” hydrogen is obtained by means of electrolysis, separating it from the oxygen in water by the use of an electrical present.
The latter kind joins the vary of unpolluted sources to drive power transition away from fossil fuels and thus develop a low-carbon financial system. In the present day, nonetheless, hydrogen remains to be largely derived from fossil fuels.
In its totally different colors, Panama joins Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Paraguay, Peru and Uruguay in having nationwide hydrogen insurance policies.
Ambition
In 2022, the Panamanian authorities created the Excessive Degree Inexperienced Hydrogen and Inexperienced Hydrogen Technical committees to drive the roadmap in that route.
But it surely has not made progress within the creation of free zones for commerce and storage of inexperienced hydrogen and derivatives; updating rules; and inspiring port actions to make use of electrical autos, set up decentralised photo voltaic methods, introduce power effectivity and generate warmth by means of photo voltaic thermal power.
The inexperienced hydrogen technique accepted in 2023 consists of eight targets and 30 strains of motion, foreseeing the annual manufacturing of 500,000 tonnes of this power and derivatives, to cowl 5% of the transport gasoline provide by 2030.
In 20 years, the estimate rises to the availability of 40% of transport fuels.
However this potential would require 67 gigawatts (Gw) of put in renewable capability, which is a considerable deployment in a rustic whose financial system is extremely depending on the exercise of the inter-oceanic canal between the Pacific and the Atlantic, inaugurated in 1914 and expanded a century later, in a undertaking that doubled its capability and got here into operation in 2016.
In 2023, the Panamanian power combine relied on hydropower, fuel, wind, bunker, photo voltaic and diesel, with an installed capacity of three.47 Gw at the beginning of 2024. Panama currently has at the least 31 photovoltaic vegetation and three wind farms.
Electrical energy era accounted for some 24 million tonnes of CO2 emissions in 2021, with the biggest contributors being power (70%) and agriculture (20%).
However in 2023, the nation declared itself carbon neutral, i.e. its forests seize the air pollution launched into the environment, having a damaging stability in GHG emissions.
The nationwide technique consists of the development of a 160 megawatt (MW) photo voltaic plant and an 18 MW wind energy farm within the centre-south of the nation, in addition to a second 290 MW photovoltaic plant within the northern province of Colón.
On this province, a inexperienced ammonia manufacturing plant is deliberate to provide the long run demand for transport gasoline, with an annual manufacturing of 65,000 tonnes and an funding of US$ 500 million.
The worldwide transport sector considers hydrogen, ammonia and its by-product, methanol, to be viable. The latter, which can also be used to make fertilisers, explosives and different commodities, could be obtained from inexperienced hydrogen.
A requirement of as much as 280,000 tonnes of inexperienced ammonia per yr is projected by 2040, which might require the set up of 4.2 Gw of electrolysis.
Leonardo Beltrán, a non-resident researcher on the non-governmental Institute of the Americas, advised IPS concerning the technique of constructing methods, institutional imaginative and prescient, and brief, medium and long-term targets.
“They’ve taken large steps in a comparatively brief time frame. They have already got the infrastructure, the canal. If that demand is met, it could possibly be a sport changer. In the event you can join the canal to different ports, to america or Europe, they may very nicely have that (inexperienced) hall that might anchor a related demand. That might enhance on-site and in addition regional era,” he mentioned from Mexico Metropolis.
With assist from the Inter-American Improvement Financial institution (IDB) and the United Nations Setting Programme (UNEP), Panama is growing pre-feasibility tasks on the manufacturing of inexperienced hydrogen, its conversion to ammonia and the set up of an ammonia dispatch station as a clear transport gasoline, and on the manufacturing of inexperienced aviation paraffin.
The roadmap discovered to be extra possible the manufacturing of hydrogen in Panama, the import of inexperienced ammonia and the processing of inexperienced transport gasoline.
Additionally, the nation is contemplating manufacturing inexperienced paraffin for aviation, provided that it hosts an air transport hub within the area, though testing is in its infancy and includes a for much longer course of than within the case of transport.
Harmonisation
The hydrogen technique is a operate of Panama’s logistical, power and local weather change wants.
Panama at present has 10 tax-free fossil fuel areas, with storage capability of greater than 30 million barrels (159 litre) equal and one liquefied fossil fuel space, that are tax exempt and could possibly be the mannequin for future hydrogen era areas.
In 2021, the nation shipped 42.79 million tonnes of fuel to more than 44,000 vessels, a determine that may develop by 2030. By comparability, hydrogen passing by means of the canal would whole 81.84 million tonnes in 2030 and 190.96 million in 2050.
In its voluntary local weather contributions underneath the Paris Settlement, Panama pledged to scale back whole emissions from the power sector by at the least 11.5% in 2030, from its 2019 degree, and by 24% in 2050.
In parallel, as of 2021, the Panama Canal, by means of which 6% of world commerce passes, is implementing its personal Sustainable Development and Decarbonisation Strategy.
The autonomous Panama Canal Authority’s plan consists of the introduction of electrical autos, tugboats and boats utilizing different fuels; the alternative of fossil electrical energy with photovoltaics and using hydropower, to turn out to be carbon impartial by 2030, with an funding of some US$8.5 billion over the following 5 years.
The canal reduces some 16 million tonnes of CO2 every year.
Tolls and transport companies are its greatest sources of income, and thus the significance of growing transport fuels based mostly on clear hydrogen.
Within the first 9 months of 2023, 210.73 million lengthy tons (1,016 kilograms) went by means of the interoceanic infrastructure, down from 218.44 million in the identical interval in 2022.
Of the full cargoes, one third are fossil fuels. Container, chemical, fuel and bulk carriers are the principle transports.
Lucero mentioned the nation is searching for investments in renewable power, significantly inexperienced hydrogen.
“This market needs to be developed in an orderly method. Demand needs to be pushed; in any other case, the funding won’t be worthwhile. There are uncertainties, however the line that has been taken is that hydrogen is the long run and we wish to break free from being followers to turn out to be leaders, to grab the second to develop and be ready when the increase arrives,” he confused.
For knowledgeable Beltrán, if the federal government that took workplace on 1 July follows this route, it will ship a robust sign to the sector and thus pull the transport sector towards power transition.
“Changing imports with native product is extra handy, and the way in which could be with the obtainable, renewable useful resource. That might affect native improvement and contribute to the power transition agenda,” he mentioned.
© Inter Press Service (2024) — All Rights ReservedOriginal source: Inter Press Service
