EBRD & Ukraine Boost Low Carbon Hydrogen Development
The European Bank for Reconstruction and Development and the Gas Transmission System Operator of Ukraine are joining forces to promote the development and use of hydrogen in Ukraine. The partners have signed an agreement to formalise their cooperation on low-carbon hydrogen and to develop hydrogen supply chains, a first of its kind accord. The EBRD and GTSOU previously signed a Memorandum of Understanding in April 2020 that would provide a general framework to improve the environment for sustainable energy investments in Ukraine and reduce the level of greenhouse gas emissions, in particular methane fugitive emissions, and air pollution.
The EBRD regions are characterised by a growing renewable energy industry, which is expected to continue adding value to the domestic economies and contribute to green transition. In certain countries, recent renewable energy electricity prices have fallen below US$ 30/MWh, a level at which production of green hydrogen starts to become competitive with conventional fossil fuels. The Bank recently launched a study on the potential for developing different segments of the hydrogen supply chain across many of the economies where it invests, including Ukraine.
Green hydrogen, made through the electrolysis of water powered by renewable energy, is widely seen as a promising clean fuel as it has no carbon footprint. In early July, the European Union put scaling up green hydrogen at the centre of Europe’s climate ambition, announcing plans to produce up to a million tonnes of the gas through facilities to be built in the next four years.