The approval of an ambitious €25 million project will allow Costa Rica to invest significantly in the development of green hydrogen as a complementary strategy to decarbonize its economy.
The “Green Hydrogen for a Decarbonized Economy” project is designed to harness this clean energy as a viable alternative for sectors that are challenging to electrify, such as the cement industry and heavy-duty transportation.
The project comprises two primary components: financial assistance and technical assistance. Financial assistance will support the initial investments in green hydrogen projects through concessional loans and subsidies, addressing the high upfront costs associated with this emerging sector. Technical assistance will focus on developing human and institutional capacities, revising the legal and regulatory framework as needed, and creating strategies to generate positive social impacts, including job creation.
“We aim to support the Costa Rican government in implementing the National Green Hydrogen Strategy,” said Claus Kruse, interim project manager for the German Cooperation GIZ.
In the medium term, hydrogen hubs could be established across the country, consolidating not only green hydrogen production but also its application in transportation, industrial projects, and related areas such as technical and professional training, certification, research, and more.
“This is a unique model that offers significant support to Costa Rica. It provides an opportunity to build the capacity of both the private and public sectors, alongside the State’s guidance, to explore a new energy domain. The goal is to equip new generations with the knowledge and tools to combat climate change,” said Costa Rica’s Vice Minister of Energy, Ronny Rodríguez.
In May 2021, the German Development Cooperation GIZ submitted a proposal on behalf of the Costa Rican government to the MAF (formerly NAMA) to compete for funds to develop a green hydrogen project in the country.
In October of the same year, during the United Nations Climate Change Conference in Glasgow (COP26), it was announced that Costa Rica’s proposal had been selected, making it the only one chosen from Latin America and the first of its kind in history. The project officially started on September 1, with the German Development Cooperation GIZ spearheading its implementation.
