Costa Rica

Green Hydrogen Vision

Costa Rica's green hydrogen vision revolves around leveraging its nearly 100% renewable energy matrix to become a leader in green hydrogen production and innovation. The country aims to integrate green hydrogen into hard-to-electrify sectors such as heavy transportation and industry, contributing significantly to its goal of achieving net-zero emissions by 2050. By establishing itself as a regional hub for green hydrogen technology and knowledge, Costa Rica seeks to reduce greenhouse gas emissions, enhance energy independence, and stimulate economic growth through sustainable energy solutions. 

National Strategy

Costa Rica's National Green Hydrogen Strategy (NGHS) officially published in December 2022 by the Ministry of Environment and Energy (MINAE), outlines its vision to leverage renewable energy resources for green hydrogen production, aiming for net-zero emissions by 2050. The NGHS positions green hydrogen as a pivotal element in Costa Rica's decarbonisation efforts, mainly targeting challenging sectors to electrify, such as heavy-duty transportation and industry.  The strategy emphasises utilising the nation's renewable energy matrix, which is nearly 100% renewable, to produce green hydrogen competitively. It also aims to establish Costa Rica as a regional hub for green hydrogen knowledge and technology.   

Capacity Targets

Costa Rica's 2023 Green Hydrogen Strategy aims for a potential production capacity of up to six million tonnes per year and an installed electrolysis capacity of 150 and 500 megawatts by 2030, marking their target for green hydrogen production capacity within the country. The NGHS highlights the potential to produce green hydrogen using renewable energy surpluses.

Production costs are estimated between $2 and $4 per kilogram. The strategy suggests that dedicated renewable energy projects could reduce costs to between $2 and $3 per kilogram by 2030. Additionally, establishing hydrogen hubs nationwide is envisioned to consolidate production and application efforts.   

Impact Targets

The primary impact target of the NGHS is to contribute significantly to Costa Rica's goal of achieving net-zero emissions by 2050. By integrating green hydrogen into sectors like transportation and industry, the strategy aims to reduce greenhouse gas emissions, enhance energy independence, and stimulate economic growth by developing new technologies and job creation.   

Policy Spotlight and Financing

1. In September 2024, Costa Rica approved a €25 million project, "Green Hydrogen for a Decarbonized Economy," designed to support the NGHS.  This project includes financial assistance in the form of concessional loans and subsidies to offset high initial investment costs and technical assistance for capacity building and regulatory framework development.  The German Development Cooperation GIZ is leading the implementation of this project. Costa Rica's NGHS reflects a comprehensive approach to integrating green hydrogen into its energy landscape, leveraging existing renewable resources to meet long-term decarbonisation goals. 
2. The Costa Rican Electricity Institute (ICE) and the Australian firm Kadelco have entered into a Memorandum of Understanding (MoU) to assess the conditions for the electricity supply necessary for producing green hydrogen in Costa Rica. This initiative can potentially make up to 50,000 tons of green hydrogen annually. Additionally, it will create frameworks for exchanging technical information related to quality, power, availability, carbon content, and seasonal variations of the electricity supply, fostering collaboration in Costa Rica. 

Government Green Hydrogen Lead

Ministry of Environment and Energy (MINAE)