Hydrogen Strategy 2025: Recommendations for Pakistan

Pakistan’s energy future faces several significant threats. The country’s over-reliance on fossil fuels has led to resource depletion, while inefficiencies and outdated technologies in the energy sector contribute to substantial wastage. Water scarcity hampers hydroelectric power generation. Additionally, a lack of investment in infrastructure and technology impedes the development of indigenous sustainable energy solutions. Carbon emissions further threaten exports, as international markets like the European Union may ban products produced using fossil fuels. Pakistan’s hydrogen energy strategy, set to be issued in 2025 by the Ministry of Planning and Special Initiatives (MoP&SI), will be crucial to address these challenges.
Many countries are striving to achieve the objective of establishing hydrogen as a prominent, carbon-free energy source. Over 20 countries, including Japan, the European Union (EU) member states, the United Kingdom, the United States, China, Japan, and India, have announced their national hydrogen strategies. The EU aims to decarbonize hard-to-electrify sectors and reduce carbon emissions by 2030-2050, emphasizing public-private partnerships and significant investments in hydrogen infrastructure. Similarly, the UK’s strategy targets a substantial hydrogen economy by 2050, with plans for residential heating and various transport applications. China’s strategy includes shifting from coal-based to renewables-based hydrogen production and expanding hydrogen infrastructure. India’s ambitious National Green Hydrogen Mission targets energy independence by 2047 and carbon neutrality by 2070, with substantial investments and incentives to promote green hydrogen production and usage across multiple sectors with a focus on exporting hydrogen to Europe, especially Germany. These comprehensive strategies reflect a global commitment to advancing hydrogen fuels as a way to combat climate change. Pakistan is set to issue its strategy by 2025.
Currently, hydrogen production in Pakistan is primarily used as a raw material in fertilizers, a reducing agent in refineries, and for cooling generators in power plants. The country’s hydrogen production methods include steam methane reforming, cracking, reforming, and electrolysis. The electrolysis of water for hydrogen production is specific to power plants only. The Pilot projects for hydrogen electrolysis at Ghazi Barotha Dam and Quaid-e-Azam Solar Park are planned for 2026 and 2028, respectively. Oracle Power Company has also initiated a project to produce green hydrogen and ammonia using wind and solar power in Jhimpir.
The current status of hydrogen energy in Pakistan shows promising developments and potential for growth. A pre-feasibility study by NEECA recommends exploring seasonal hydrogen production and storage in salt caverns. The interesting point was that hydrogen generation from solar energy was estimated to be expensive due to tariff structure while the world insists on solar hydrogen production being the cheapest. In a symposium by the Pakistan Academy of Engineering (PAE) on Nuclear Hydrogen, a Representative from Pakistan Atomic Energy Commission nuclear hydrogen option is more feasible in Pakistan. Though there is no project about soon.
Irrespective of Tariff structure, Pakistan has significant opportunities in the realm of green hydrogen energy, particularly due to its abundant solar, and wind potential. The geopolitical shift towards reducing reliance on imported resources in Europe and the US, and advancements in hydrogen technology, creates a favourable environment for Pakistan to harness its renewable energy resources for hydrogen production. Additionally, with the development of fourth-generation nuclear reactors, Pakistan could simultaneously produce hydrogen and power.
However, several challenges need to be addressed to realize this potential. The cost of production, particularly the high cost of PEM electrolysers, is a significant hurdle. Hydrogen storage also poses challenges, with various methods like compressed gas, liquified gas, metal hydrides, and underground storage each having their own costs and logistical issues. Infrastructure development for distribution requires substantial investment and planning. Additionally, ensuring the safety of hydrogen handling and storage necessitates a comprehensive regulatory framework. Finally, the availability of water, its salinity, and its conditioning cost pose a significant challenge to realise Pakistan’s potential for hydrogen production. Despite these challenges, the strategic exploitation of renewable energy sources could position Pakistan as a key player in the global hydrogen economy.
To harness the potential while addressing challenges, I have the following suggestions for MoP&SI’s consideration.
Utilizing Waste and Seawater: Given Pakistan’s expected water scarcity, hydrogen production should focus on the pyrolysis of municipal waste, plastics, and using seawater and wastewater.
Developing Local Manufacturing: Establish a solar panel manufacturing plant by 2032 and an PEM/AEM/ SOEC electrolyser plant by 2040, with potential collaboration with China for a 1000 MT/year dust-resistant solar panel production facility and polysilicon production using local resources. Invest in developing local technologies for hydrogen production from water, waste, and biomass to promote a knowledge-based economy and job creation.
Private Sector Engagement: Encourage public-private partnerships to fund and bring expertise to the hydrogen industry.
Investing in a Hydrogen Centre: Create an engineering design and R&D centre focused on cost-effective hydrogen production, storage, and transportation, and study the compatibility of existing infrastructure like natural gas pipelines. Use effective Monitoring and evaluation Learning mechanisms for the improvement of service.
Substituting Imported Fuels: Focus on replacing methane with hydrogen in fertilizer production and developing hydrogen and coal-based power generation.
International Collaboration and Funding: Leverage Pakistan’s relationship with China under CPEC for mutually beneficial hydrogen projects and explore using nuclear energy for hydrogen production.
Exporting Hydrogen: Position Pakistan as a hydrogen exporter to Europe, negotiating investments in local manufacturing and renewable technologies in exchange for reliable and cost-effective hydrogen supplies. Consider collaboration with Germany for high-efficiency solar panels and human resource development.