| Work Detail |
The climate crisis threatens water management and the water crisis in Montevideo, the capital of Uruguay, in 2023 illustrates the damage that new industrial projects can cause if they are not thoroughly evaluated. As green hydrogen projects gain international relevance, it is vital that they are properly planned.
Climate change causes regional variations in rainfall, which can cause flooding and water shortages. Water management is increasingly important to ensure a reliable supply of drinking water and food production amid a changing climate.
A recent example of water mismanagement occurred in Montevideo (Uruguay), where a state of emergency was declared due to extreme water shortages in the capital. The state of emergency allowed infrastructure to be expanded in protected areas without carrying out social or environmental impact assessments. The lack of information raised questions about the impact on the population, the permanent nature of infrastructure, the security of water supply and compensation for lost livelihoods.
The decision process in this emergency exemplified the role that water crises can play in a climate-changing world, and should galvanize global efforts to reconsider water management plans. How will water resources evolve? How should we assess the current and future availability of water for industrial-scale demand? What impact will coupling energy and water demand through green hydrogen production have, and how can we get off to a good start in developing such projects?
Green hydrogen
With the Uruguayan crisis as an example, water use should be reevaluated, improved and planned with greater foresight. This includes the development of industrial estates, which will add additional water needs to those already existing for drinking water supply and agriculture. Green hydrogen could play a central role in the energy transition, as it could replace fossil fuels to decarbonize the industrial and transport sectors. In addition to renewable electricity, the production of green hydrogen also requires water. At a minimum, the production of one kilogram of hydrogen requires between 18 and 30 liters of water, depending on the quality of the water.
Uruguay is a nation with great green hydrogen potential and an energy cooperation agreement has already been signed between the European Union and the South American State . Two hydrogen projects, led by German companies Enertrag and Linde, are already in the planning process. Additionally, the H2U project, led by Uruguayan state oil refinery ANCAP, has identified the potential to generate 200,000 tonnes of green hydrogen per year for export, powered by offshore wind farms. Realizing that potential would result in an estimated water demand comparable to that of a Google data center, which was recently publicly challenged, as it would require the same amount of water as consumed by 55,000 people.
This highlights that new projects must not exacerbate existing water shortages. The economic development of project sites, including industries that could be attracted by hydrogen infrastructure, must be taken into account when estimating future water demand. It is imperative to require new industries to achieve a high degree of efficiency in water recycling. Total water demand should then be compared to groundwater recharge rates, taking into account climate change.
Social impact
Water scarcity has great humanitarian repercussions and it is important to take them into account in decision-making processes. Structural concerns can also accompany international projects. Historically, large-scale extractive industries supplying international markets have not redistributed benefits to local populations, while land-intensive facilities can lead to loss of ownership by communities and “grabbing.” of lands.” Joint benefit models that promise to fund community infrastructure such as schools and hospitals may lead to greater dependence on the new industries that fund them. Nations that import the products created by those industries avoid the risks of resource extraction and depletion in their own backyard, externalizing existing tensions.
These concerns are likely to also hold true for green hydrogen plants, which could certainly exacerbate water shortages. Many nations with green hydrogen potential suffer, or have suffered, from unjust power structures rooted in colonialism and it is crucial not to reinforce such situations. Green hydrogen projects should benefit both importing and exporting countries. This should not be limited to economic benefits, but should also take into account the sustainable development needs and objectives of producing countries, for example in the field of energy.
To ensure the sustainable development of projects, potential green hydrogen exporting and importing countries should be responsible for building capacity, experience, knowledge and awareness on the aforementioned aspects. Co-developed legislation for the production, transport and trade of green hydrogen should also meet the needs of all stakeholders. Taking social, environmental and cultural aspects into account may take longer than current top-down approaches to infrastructure planning, but would lead to greater acceptance and support for sustainable projects.
Given the potential for international water-intensive projects, including green hydrogen plants, to increase water scarcity, policymakers and project developers should take the following measures:
Consider the effects of climate change in environmental impact assessments (EIAs): Independent EIAs, including those relating to water use, should be mandatory for green hydrogen projects and should be considered in combination with other water users. Projects that can be expected to lead to a reduction in the climate or environmental resilience of a region should be excluded from state or international funding.
Ensure sustainable, participatory delivery of projects: Impact assessments must include local voices and the regulatory process must empower civil society to participate in decision-making. This can ensure that social aspects and opinions are fully taken into account, rather than just empty words to avoid public opposition.
Prioritize water management and the use of hydrogen for local populations and essential industries: Although Uruguay includes in its Constitution the right to access to water, other countries must follow its example. Local water use and hydrogen application must be prioritized over export targets.
Promote research interaction with green hydrogen partner countries: Although the European Union is the largest donor of research funds globally, middle-income countries receive few resources. With a green hydrogen partnership with Uruguay on the horizon, it is important to support bilateral research. Joint research between exporting and importing countries is key to shaping the sustainable application of green hydrogen partnerships. |
