Innovation

Frankfurt, November 14, 2023 - UNIDO, the United Nations Industrial Development Organization, and VDMA today signed a joint declaration of intent in Frankfurt. Together, the two organizations aim to promote inclusive and sustainable industrial development in developing, emerging and transition economies in the future. The declaration was signed at the conference "From Production to Application: THE #P2X CONFERENCE." The partnership aims to promote efficient equipment, technology and investment development in the target countries. Likewise, it foresees joining hands in capacity building for industrial development and diversification there. The focus areas are green hydrogen, agribusiness, the textile and clothing industry, the circular economy, and water and wastewater treatment.  With its 3,600 members, the VDMA is Germany and Europe's largest network organization for mechanical and plant engineering. The association represents this unique and diverse industry's common economic, technical and scientific interests. 

A HYDROGEN ECONOMY: OPPORTUNITIES FOR DEVELOPING COUNTRIESProduced from renewable energy sources, green hydrogen (GH2), also known as renewable hydrogen, is the fuel of the future. It is clean, storable and portable, and can be blended into existing energy networks and integrated with current infrastructure. Green hydrogen and low-carbon hydrogen[1] are key to decarbonization of hard-to-abate industries such as steel production, cement, chemicals and heavy transport, which together account for 30 per cent of global CO2 emissions. In short, hydrogen can help countries around the world achieve their climate goals.

Photo: IHECSince its inception on 7 July 2021, and with the support of the Government of China and the United Nations Industrial Development Organization (UNIDO), the International Hydrogen Energy Centre (IHEC) has been promoting the development of hydrogen energy, including through the world's largest demonstration project – jointly led by IHEC and Beijing Sinohytec – of hydrogen fuel cell commercial vehicles during the 2022 Beijing Winter Olympics as more than 850 hydrogen fuel cell buses were used to transport athletes and officials with 9 green hydrogen refueling stations built in Zhangjiakou, Hebei Province. In total, the buses operated over 3.2 million kilometers and consumed around 200 tons of green hydrogen, which saved an estimated 2,000 tons of carbon.Another IHEC flagship programme, which was developed with the Shuimu Mingtuo Group and Hualu, is the establishment of the International Hydrogen Energy Metallurgy and Chemical Demonstration Zone, which is the world's first comprehensive demonstration project on green hydrogen production and its applications for the metallurgical and chemicals industries. The zone’s construction in Baotou, Inner Mongolia, is planned to start at the end of 2022 and should start its official operations in 2025.The feasibility study report was completed in close cooperation with ThyssenKrupp Technology (Shanghai), the General Electric Power Planning and Design Institute, and Aerospace Changzheng Chemical Engineering. The research and engineering design of the green ammonia is under development in close cooperation with Rhine Technology (Shanghai), TUV (Germany) and Hualu Engineering Technology.The demonstration zone is intended to promote the formation of a green and low-carbon chemical industry chain and achieve comprehensive carbon neutrality in the metallurgical and chemical industries. The annual capacity of green hydrogen is expected to be 300,000 tons derived from building the country’s largest 5-million-kilowatt wind power generation and 1.5 million kilowatt photovoltaic power. China’s first set of 2×550,000 tons of direct reduced iron will be built using green hydrogen as a reducing agent. At the same time, using green hydrogen and air-captured nitrogen as raw materials, the project will produce an annual production capacity of 1.2 million tons of green ammonia synthesis. For more information, please contact:LIU HengSenior Technical Advisor, Department of Energy,  UNIDOEmail

Green hydrogen is a key element in any decarbonization strategy. All major and emerging economies are investing heavily in green hydrogen, as well as in international energy partnerships to secure long-term imports. This creates new opportunities for industrial development, particularly in countries that are well-endowed with renewable power sources. If these countries create the appropriate framework conditions, they can develop promising new industrial clusters by investing in renewable power projects and electrolysers first to then gradually attract energy-intensive steel or base chemicals investments, in addition to manifold downstream industries that use green steel or chemical feedstocks. Proactive strategies are therefore indispensable to fully reap these new opportunities for industrial development.