On 19 January 2023, the Ministry of Energy and Natural Resources of the Republic of Türkiye (“MENR”) has published the Hydrogen Technologies Strategy and Roadmap of Türkiye (“Roadmap”) with the aim of creating a carbon-neutral economy model by using hydrogen.17 The Roadmap, which has been prepared by taking into account the developments in the hydrogen sector both in Türkiye and the world, provides a valuable vision and policy recommendations for the advancement of hydrogen technologies in Türkiye. In this article, we have reviewed the development of hydrogen technologies, the current situation and prospects of hydrogen in the world and in Türkiye, and the targets for increasing its domestic use and exports.
Hydrogen Technologies from Past to Present
Hydrogen energy, which is the chemical energy released by the decomposition of hydrogen into its components, is a secondary energy source produced by the conversion of primary energy sources such as natural gas, solar and wind. Depending on the type of primary energy source from which it is produced, it is given different names such as gray hydrogen and green hydrogen. Since hydrogen is one of the most widely available elements on earth and is highly efficient, it attracts considerable attention. Looking at their common history, hydrogen and energy go back a long way. The discovery of the production of hydrogen by water electrolysis, and in 1839, the generation of electricity from hydrogen by means of fuel cells marks the first steps of such common history. Hydrogen was used as a fuel for the first internal combustion engines and was also used in balloons and zeppelins. Thereafter, hydrogen has been an integral part of the energy industry since the mid-20th century, when its use in petroleum refining became widespread in hydro-treating and hydro-cracking areas.
Today, hydrogen technologies are used in different sectors such as production, storage and distribution. In terms of production technologies, the production of green hydrogen by water electrolysis using electricity generated from renewable energy resources such as solar and wind has made hydrogen a suitable energy source for countries’ emission reduction targets, and this has led to the need for countries to formulate national hydrogen policies and determine strategies. When it comes to storage and distribution technologies, technological advances in hydrogen’s long-term storage and safe transportation in pipelines enable the increased use of hydrogen in these sectors.
Current Status of Hydrogen in the World and in Türkiye
Significant developments are taking place in the world to establish a regulatory framework for hydrogen. For instance, the Infrastructure Investment and Jobs Act20 which came into force in 2021 in the United States, allocates a budget to the government for the research and development studies on the hydrogen infrastructure. In addition, this Act provides for the development of at least four clean hydrogen centers, provided that clean hydrogen production from renewable energy is documented/certified. Furthermore, in Germany, the amendment to the Energy Industry Act (Energiewirtschaftsesetz), which entered into force on 26 July 2021, introduced crucial changes on the unbundling of hydrogen pipelines from natural gas pipelines. With this amendment, hydrogen blended into the natural gas network and produced by electrolysis is included in the definition of gas, while pure hydrogen is defined as an energy source separate from gas.
The targets declared by the European Union to increase the share of green hydrogen in energy consumption also led Türkiye, one of the largest trading partners of the European Union, to keep pace with such targets. The Bozcaada Hydrogen Island Project, which was launched in 2011 as a pilot project in partnership with MENR and the United Nations Industrial Development Organization International Hydrogen Energy Technologies Center, was one of the first steps in Türkiye’s hydrogen journey. However, this pilot project, which planned to supply electricity to the district governorship and health center buildings in Bozcaada through a 50 kW electrolyzer, could not be completed.
The first step towards creating a regulatory framework for the hydrogen use in Türkiye was taken in 2007. The Energy Efficiency Law stipulates that the procedures and principles for encouraging the use of hydrogen will be determined by a regulation to be adopted by MENR. Under the Regulation on Procedures and Principles for the Increase of Energy Efficiency in Transportation, which was published 12 years after the Energy Efficiency Law, hydrogen is listed among alternative fuels that can be used partially or completely instead of petroleum fuels in transportation, that increase the environmental sustainability of the transportation sector, that reduce emissions or have the potential to do so, and it is also regulated that alternative fuel vehicles are to be used in priority in freight and public transportation.
In 2020, during the “Energy Search Meetings: Hydrogen” Workshop organized by MENR, it was underlined that hydrogen is the “energy carrier of the future” and the target benefits to be enjoyed from hydrogen were stated as follows:
The Workshop also touched upon the necessity to use storage technologies to balance the electricity generated from renewable energy sources, and it was stated that mixing 2-6% hydrogen into natural gas distribution lines is one of the ways to do this, which means 1-3 billion m3H2 to be delivered to the system in Türkiye’s scale.
In 2021, GAZBİR-GAZMER Clean Energy Technology Center was opened for the research and development of technologies with regard to hydrogen injection into the natural gas lines. For the first time in Türkiye, a combustion test of a mixture composed of hydrogen and natural gas in certain ratios was successfully performed in this Center. On the other hand, tests to get the entire natural gas network ready to burn hydrogen mixtures are still in progress.
In March this year, an agreement was signed for launching the “South Marmara Hydrogen Shore Platform Project”, which aims to establish Türkiye’s first and largest domestic green hydrogen plant. With this Project, which is intended to be the most important initiative in the industrial sector to attain the 2053 net zero target, South Marmara Region is expected to be specialized in hydrogen technologies.
In Türkiye, there is no regulation yet for the creation of a hydrogen ecosystem. Recognizing such deficiency, the Roadmap devised by MENR notes that an individual hydrogen market law could be adopted for the formation of a hydrogen ecosystem; or alternatively, that relevant provisions may be incorporated into the Natural Gas Market Law 27, the Electricity Market Law28 or the Law on the Utilization of Renewable Energy Sources for the Purposes of Generating Electrical Energy29 that can serve as the basis for the creation of the regulatory framework for hydrogen.
Hydrogen Targets of Türkiye
Under the Roadmap, Türkiye’s strategic priority is to meet its own needs by producing green hydrogen from domestic sources and to increase the foreign currency inflow to Türkiye by exporting the surplus. The Roadmap also sets out targets to reduce the cost of green hydrogen production below USD 2.4/kgH2 by 2035 and USD 1.2/kgH2 by 2053, and to increase the installed capacity of electrolyzers to 2 GW by 2030, 5 GW by 2035 and 70 GW by 2053. The policies determined in line with these objectives are as follows:
The Medium Term Program for 2023-2025 also sets out policies and measures to develop an investment ecosystem that contributes to emission reduction, such as green hydrogen and energy storage, and to continue to support green technology R&D projects, particularly in the agriculture, industry, transport, and energy sectors, to create the infrastructure for a green transition.
It is also worthwhile to mention that in the National Energy Plan which is published on 19 January 2023, the share of hydrogen in the gas mixture is set at 3.5% for 2035. In the first phase, hydrogen energy is envisioned to be used for on-site consumption and to meet industrial demands. The National Energy Plan also highlights that the electrolyzer capacity will reach 5.0 GW by 2035.
Conclusion
The role of hydrogen is critical for Türkiye to achieve its 2053 net zero target, and it is therefore of great importance to encourage technological developments by establishing the relevant regulatory framework creating a favorable ecosystem for the development of the green hydrogen market in Türkiye. To this end, it is crucial to ensure cooperative interaction among all players who will implement the regulations, develop and/or fund the development of technologies, and bear the responsibility for storage and distribution of hydrogen. In this regard, Türkiye has set ambitious targets and policies in its Roadmap. Implementation of these policies is expected to enhance new investments in Türkiye’s green hydrogen market.
COUNSEL
Müşavvir Enerji / Elektrik Petrol ve Doğal Gaz Madencilik Taşımacılık ve Lojistik Kamu Özel İşbirlikleri ve İmtiyazlar İnşaat ve Altyapı Finansal Hizmetler Projeler ve Proje Finansmanı Bankacılık ve Finans Şirketler ve Ticaret Hukuku Sermaye Piyasası Hukuku Kamu İhale Hukuku Gayrimenkul Hukuku
ASSOCIATE
Avukat Tüketim Ürünleri Enerji / Elektrik Madencilik Savunma Şirketler ve Ticaret Hukuku Birleşme ve Devralmalar Dava ve Uyuşmazlık Çözümleri
INTERN LAWYER
Stajyer Avukat
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