On the third anniversary of the Costa Rica government’s National Decarbonization Plan President Carlos Alvarado signed a proposal to produce green hydrogen here in Costa Rica.
With the participation of authorities from the Costa Rican Institute of Electricity (ICE) and representatives of the Australian company Kadelco, a memorandum of understanding was signed that seeks to identify electricity supply conditions for the production of green hydrogen.
Kadelco is an international corporation, headquartered in Australia. It is dedicated to the development of industrial solutions and the construction of large infrastructure projects. Faye Duncan, CEO of Kadelco, told government authorities of the company’s interest in building a green hydrogen plant in the country through a substantial investment.
If the proper conditions are met the value of the investment will be an estimated 2 billion U.S. dollars.
The Government announced that at least three foreign companies – one of them is Kadelco – are interested in building plants for the production of green hydrogen with renewable electricity from the National Electric System.
Kenneth Lobo, director of Planning and Sustainability of the Electricity Management of ICE, pointed out that the Institute will collaborate as a technical entity, with all companies interested in commercially producing this type of hydrogen.
“From the first day of this Administration, this Government has assumed a commitment to the development of clean energy and the production of green hydrogen in the country.
The goal is to use our energy matrix as a competitive advantage to develop a new industry that, without a doubt, will represent a great boost to the Costa Rican economy”, explained President Alvarado.
The CEO of Kadelco, Faye Duncan, asserted that “the National Decarbonization Plan has been a key element in our decision”, as well as other factors, such as the geographical location as a bi-oceanic nation, democratic stability, the presence of 400 foreign companies, the opportunities for post-pandemic economic growth, and the quality and education of Costa Ricans.”
No time line has been announced as to when Kadelco will decide if proper conditions have been met for their proposed investment. It appears that the cooperation of ICE will be critical to the completion of this deal.