The European Bank for Reconstruction and Development (EBRD) and the Gas Transmission System Operator of Ukraine (GTSOU) signed a first-of-its-kind agreement on July 23 to formalize their low-carbon hydrogen collaboration and build hydrogen supply chains.
In April 2020, the EBRD and GTSOU signed a Memorandum of Understanding that aimed to strengthen the climate for sustainable energy investments in Ukraine and minimize greenhouse gas emissions, particularly fugitive methane emissions, as well as air pollution.
A developing renewable energy industry characterizes the EBRD regions, which is expected to continue providing value to domestic economies and contribute to the green transition. Recent renewable energy electricity prices in several countries have gone below $30/MWh, a threshold at which green hydrogen production becomes competitive with traditional fossil fuels.
The Bank has just initiated research on the possibilities for developing various elements of the hydrogen supply chain in many of the economies in which it invests, including Ukraine.
Hydrogen is one of the most promising energy sources, with the potential to greatly contribute to energy decarbonization and the achievement of long-term development goals. As a result, the task is to develop technologies that will allow hydrogen to be used at a larger scale, as well as to provide the necessary circumstances and infrastructure for its production, transportation, and consumption. All of this takes time, effort, and collaboration from all parties involved.
Natural gas is recognized in Ukraine as a crucial energy source and transition fuel on the route to a carbon-free economy, and it will continue to play an important role during the transition phase. The objective now, as the operator of the gas transmission system, is to prepare their infrastructure for future decarbonized energy markets,” says the company.
Because it has no carbon imprint, “green” hydrogen, which is produced by electrolysis of water using renewable energy, is widely regarded as a promising clean fuel. The European Union announced intentions to produce up to a million tonnes of green hydrogen over the next four years in early July, putting scaling up green hydrogen at the center of Europe’s climate ambition.
The European Bank for Reconstruction and Development (EBRD) has spent almost €15 billion on nearly 500 projects in Ukraine so far. By boosting energy efficiency and security, unlocking agricultural and industrial potential, providing quality infrastructure, and strengthening the financial system, work is focused on aiding the country’s stabilization and anchoring its reforms.