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Add to Preferred SourcesThe European Bank for Reconstruction and Development (EBRD) and the Gas Transmission System Operator of Ukraine (GTSOU) are joining forces to promote the development and use of hydrogen in Ukraine.
The partners have signed an agreement to formalize 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 characterized 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.
Harry Boyd-Carpenter, EBRD Managing Director, Green Economy, and Climate Action, said: “I am very pleased that the EBRD and GTSOU are cooperating to support each other’s activities regarding hydrogen. Ukraine relies heavily on fossil fuels across all sectors of its economy and hydrogen can represent a good alternative for decarbonization, and reduce reliance on fossil fuels. Supporting the green transition of our economies is a key priority for the EBRD.”
Sergiy Makogon, CEO of GTSOU, said: “Hydrogen is one of the most promising energy sources, which will contribute significantly to energy decarbonization and achieving sustainable development goals. The challenge, therefore, is to develop technology to scale up hydrogen use, to create the necessary conditions and infrastructure for its production, transportation, and consumption. All this requires time, effort, and cooperation by all stakeholders. We recognize the role of natural gas as one of the key energy sources and transition fuel on the path to a carbon-free economy, which will remain significant for this transition period. As the operator of the gas transmission system, our task is now to prepare our infrastructure for the decarbonized energy markets of the future.”