It's no longer a surprise that over 40 countries worldwide are developing a green hydrogen strategy, with 10 being in the Mediterranean. Global hydrogen demand will increase significantly in the next few years, in particular in those hard-to-abate sectors such as heavy-duty transport and industry.
For that, well-founded national and regional policy frameworks, including setting national hydrogen strategies, identifying energy policy priorities, establishing governance systems and enabling long term effective policies, will be essential to realize the potential for green hydrogen to contribute both to environmental goals and to socioeconomic growth throughout the Mediterranean region.

The three main strategic drivers for adopting hydrogen policies in the Mediterranean include:
1) Economy-wide decarbonization with renewable energy: high renewable production capacity installations and competitive renewable energy production is essential, along with high national adaptation potential to receive renewable gases.
2) Industrial and economic development of the region.
3) Increasing green hydrogen demand with capital expenditure.

Developing a national hydrogen strategy involves stakeholder consultations at several steps of the process, from R&D programs to developing vision documents and roadmaps. The national strategy process should analyze supply and demand, including export opportunities, ensuring close feedback with industry and civil society.

A mix of policy instruments will likely be needed to support clean hydrogen production, infrastructure, and use. Demand-side policies that aim to increase uptake of green hydrogen, include capital grants for more efficient technologies, tax exemptions on hydrogen and derivates, and concessional finance and loan guarantees that provide low-cost finance and cover technology risk. Supply-side policies to reduce the cost of green hydrogen production include capital grants for electrolysis, reducing power costs such as grid fees for electrolyzers, provision of H2 feed-in tariffs, and establishment of H2 certification systems.

Author: Nazih Toubal