Green Hydrogen Production Will Make Major Contribution to Economy

Green Hydrogen Production Set to Make Significant Economic Contribution SHURA Energy Transformation Center, in collaboration with Bilkent Energy Policy Research Center and German Energy Agency, released "Technical and Economic Assessment of Turkey's Green Hydrogen Production and Export Potential." The report was presented at an online meeting. According to the report, green hydrogen production in Turkey could reach 3.4 million tonnes by 2050, and Turkey could export green hydrogen. Green hydrogen's contribution to the Turkish economy is projected to reach USD 6-8 billion by 2050.

ISTANBUL (AA)

Hannes Seidl, Head of Energy Systems and Energy Services Division at German Energy Agency: - "Turkey has great potential to establish its position in this newly emerging global energy market by producing green hydrogen from renewable energy" According to data cited in the prepared report, with appropriate investment and policies, Turkey can reach annual green hydrogen production of up to 3.4 million tonnes by 2050. It is projected that 1.5 to 1.9 million tonnes of this produced green hydrogen could be exported. The "Technical and Economic Assessment of Turkey's Green Hydrogen Production and Export Potential" report was prepared taking into account only renewable energy use for hydrogen production potential. The report structured two different scenarios for renewable energy supply development and three scenarios for green hydrogen production.

Could Meet 5 to 10 Percent of Energy Demand

It is considered that with green hydrogen, 5 to 10 percent of the total energy demand of the manufacturing, natural gas and transport sectors could be substituted by 2050. According to data calculated in the report, annual domestic demand for 1-2 million tonnes of green hydrogen could emerge. It is stated that half of the domestic demand that will emerge by 2050 will come from the transport sector, one quarter of hydrogen demand from industry, and the remaining portion could be used through blending green hydrogen into the natural gas network. According to the Reference Scenario presented in the report, Turkey's installed capacity of solar, wind and hydroelectric power, which was 44 gigawatts last year, is calculated to increase to 120 gigawatts by 2050. Total annual electricity generation of 290 terawatt-hours from these sources is expected to meet 53 percent of Turkey's electricity demand in that period. Within the scope of the "advanced scenario" where the technical capacity projected for wind and solar energy is utilized, an additional 45 gigawatts of capacity is expected to be created and 124.4 terawatt-hours of additional annual electricity generation could be provided. It is calculated that with this additional capacity, the total generation from renewable energy sources could meet 84 percent of net electricity demand in 2050. If renewable sources are used, annual green hydrogen production could reach 3.4 million tonnes, and the total investment required to enable domestic use and export of hydrogen is calculated to range between USD 85 to 119 billion. Based on these figures, an annual average investment need of USD 3-4 billion emerges for the 2021-2050 period. Considering these data, green hydrogen production is expected to contribute USD 6-8 billion annually to the Turkish economy by 2050.

Turkey Has Significant Potential

Hannes Seidl, Head of Energy Systems and Energy Services Division at German Energy Agency, made comments regarding the report. Noting that many countries will export green hydrogen to reach climate change targets, Seidl stated: "Turkey can capture a share of this market. Turkey has great potential to establish its position in this newly emerging global energy market by producing green hydrogen from renewable energy." Hasan Aksoy, Research Coordinator at SHURA Energy Transformation Center, also made comments. Recalling that Turkey became a party to the Paris Agreement last month, Aksoy said: "There will be a need for more determined climate and energy transformation targets for 2030 and 2053. In achieving these targets, understanding the role of hydrogen is of critical importance. Global net zero emission targets pointing to 2050 focus on green hydrogen as a common solution for decarbonizing the entire energy system."