Challenge Statement

The National Government has identified four main challenges to guarantee the correct development of the low-carbon hydrogen market:

  1. Legal and regulatory enablers: An adequate regulatory and oversight regime allows for fair competition between energy sectors and companies, safeguards the interests of all parties involved, including end-users, investors, operators, and the general public, protects the environment, and aligns with the climate strategies of each of the sectors through Comprehensive Sectorial Climate Change Management Plans.
  2. Market development instruments: Mechanisms and tools aimed at encouraging the transition from conventional solutions based on fossil fuels to clean hydrogen technologies, promoting both the production and consumption of low-carbon hydrogen, including the national system of tradable quotas for CO2 emissions trading.
  3. Infrastructure deployment: Actions aimed at facilitating the effective and coordinated deployment of hydrogen transport and distribution infrastructures, thus solving what is considered one of the main barriers to the use of hydrogen at present. These actions will consider the interaction with the power generation and natural gas transportation infrastructure, as well as the existing fueling stations in Colombia in order to maximize synergies and minimize deployment costs.
  4. Technological and industrial development: Measures aimed at guaranteeing the development of the industry in a sustainable manner and with socio-economic value for the country. These instruments will leverage existing technical and industrial resources, promoting research, technological development, and national innovation.

Solution Statement

The following action lines have been defined to respond to the after mentioned challenges:

1. Regulatory framework:

  • Encourage institutional coordination and assign responsibilities vis-à-vis hydrogen
  • Define the concept of green hydrogen according to the national legal framework
  • Design a system of green hydrogen guarantees or certifications of origin
  • Strengthen Colombia’s standing and international cooperation with respect to hydrogen
  • Develop and update technical hydrogen regulations
  • Establish support mechanisms to enhance hydrogen’s competitiveness
  • Adapt regulation for new applications, such as blending

2. Enable and promote market development:

  • Consolidate the Colombian Hydrogen Association and other hydrogen-related organizations
  • Evaluate the contribution of hydrogen to the economic diversification of coal
  • Design and implement market signals that stimulate hydrogen adoption
  • Establish financing mechanisms for low-carbon hydrogen projects
  • Promote hydrogen production and consumption clusters

3. Support for infrastructure deployment:

  • Study the availability of natural resources to produce green hydrogen in Colombia
  • Analyze the possibility of blending hydrogen into the existing natural gas pipeline network
  • Deploy a network of hydrogen fueling stations in a coordinated manner
  • Plan a coordinated infrastructure deployment with the power generation and gas systems
  • Develop infrastructure for the export of hydrogen and derivatives

4. Encouraging technological development

  • Structure and create regulatory sandboxes
  • Develop knowledge management tools in Colombia’s hydrogen ecosystem
  • Train technical and professional personnel throughout the entire hydrogen value chain
  • Enhance local industrial capacities in hydrogen technologies
  • Mitigate technology risk through pilot projects
  • Monitoring hydrogen production and consumption by type and sector

Energy Compact Description and Indicators

Colombia is a country that has world class renewable energy resources, in La Guajira we have outstanding wind speed (25 GW potential) and solar radiation. Adding to that we recently published our offshore wind roadmap which states that in the Caribbean part of the Colombia’s sea we have 50 GW of potential to develop by 2030.
Thanks to this, Colombia will be a key player in the green hydrogen market, we expect to be exporting this new fuel by 2030.

Since last year when we launched our hydrogen Roadmap, we began to establish a clear regulatory and institutional framework. Also, we have set up a series of tax incentives to promote investments in this energy vector, and to complement this, last march we initiated the +hydrogen strategy which aims to finance prefeasibility and feasibility studies for green and blue hydrogen projects.

Currently we have two green hydrogen pilots in the city of Cartagena. One is dedicated to run some test in the refinery processes to evaluate which is the best way to switch from using grey h2 to using green h2 in the oil industry. The other one is trying out a mix of hydrogen and natural gas in the city of Cartagena.
Cartagena due to its location and resources has the potential to become the regions hydrogen hub, therefore we are advancing a study with the university of Columbia to identify the steps we need to take to promote the use and production of this energy vector in the city and materialize this hub.

  • New RE capacity (in MW)
    • 1,5 and 4 MW of of Non-Conventional Renewable Sources by 2030
  • New electrolyzer capacity (in MW)
    • 1 – 3 GW Electrolysis capacity
  • Investments (in USD/EUR)
    • 2.500-5.500 M USD production and demand projects 2020 and 2030
  • CO2 emissions abated (in metric tons)
    • By 2030 0.7 Mton CO2 will be abated annually
  • Other relevant indicators
    • Between 2.500 y 5.500 millons de dollars in investments

Colombia will become one of the most attractive countries to develop green hydrogen production, first for domestic offtakers, but eventually, for regional and global markets. Our geographic location, economic stability and the quality of the resources are key factors to place Colombia as a benchmark exporter in the region.