The Petroleum Division (PD) has created a concept note to create a broad pathway for green hydrogen in the country, which will be used as?fuel for transportation, power generation, and industrial activities.
Pakistan’s energy sector is characterised by a high reliance on imported fossil fuels, which places a heavy burden on the national exchequer, and the country faces the challenge to provide sustainable, economical, and reliable energy supplies to meet the country’s increasing energy needs.
The country imports a major amount of its oil and gas needs, which are vulnerable to variable worldwide pricing, making energy expenditures difficult to estimate. As a result, customers face high energy expenses, which could hinder the country’s economic growth.
Meanwhile, burning huge amounts of fossil fuels to fulfil the energy demand makes the energy sector one of the biggest contributors to greenhouse gas (GHG) emissions, accounting for 46.4% of total country GHG emissions.
Sharing the concept note with various stakeholders such as M/s GIZ, Germany’s Federal Ministry of Economic Cooperation and Development, UNDP, the World Bank, the Ministry of Climate Change, and others, Secretary Petroleum stated in a letter that hydrogen is increasingly being recognized as a highly viable energy source and ample power carrier with the ability to fundamentally alter the energy sector.
Thus by providing a versatile, low/zero-emission energy carrier that can be employed in a variety of applications, hydrogen has the potential to play a substantial role in supporting Pakistan’s transition to a low-carbon economy.
Secretary Petroleum added that incorporating hydrogen into Pakistan’s energy mix might benefit the government in extending its natural-based solutions, lowering its fossil fuel imports, and shifting to cleaner/renewable energy resources, as well as meeting its targets outlined in the country’s NDC.
Furthermore, Pakistan has the potential to become a significant exporter of hydrogen and related technologies due to its strategic location at the crossroads of South Asia, the Middle East, and Central Asia.