Sri Lanka

Green Hydrogen Vision

Sri Lanka’s green hydrogen vision is an ambitious and forward-thinking initiative to transform the country into a regional hub for renewable energy production and export while addressing its energy security and environmental challenges. With abundant renewable energy resources, including over 40 GW of offshore wind potential and significant solar capacity, Sri Lanka envisions utilising green hydrogen as a cornerstone for transitioning to a low-carbon economy. The roadmap focuses on leveraging green hydrogen to decarbonise hard-to-abate sectors such as transportation, industry, and agriculture, while addressing energy storage challenges and grid stability. By 2048, Sri Lanka plans to scale up its electrolyser capacity to 30 GW, enabling it to produce green hydrogen and its derivatives like ammonia and methanol for domestic use and export. This strategy supports the country's ambition to achieve carbon neutrality by 2050.  

It capitalises on its strategic location near major shipping lanes, positioning it as a key supplier of green fuels to global markets in the Middle East, Africa, and Asia. The roadmap emphasises building a robust hydrogen ecosystem through infrastructure development, regulatory frameworks, and international collaboration while fostering local innovation, job creation, and economic growth. By integrating green hydrogen into sectors such as heavy transportation, industrial heating, and clean cooking, Sri Lanka aims to replace imported fossil fuels with sustainable alternatives, reducing greenhouse gas emissions and enhancing energy independence. Through public-private partnerships, targeted investments, and a strong focus on research and capacity building, Sri Lanka aspires to lead the global energy transition and showcase the potential of green hydrogen as a catalyst for sustainable development and economic resilience. 

National Strategy

Sri Lanka's 2023 National Hydrogen Roadmap outlines a strategic vision to leverage its vast renewable energy resources, including offshore wind and solar, to establish a green hydrogen economy. The roadmap emphasises the dual objectives of achieving energy security and becoming a regional hub for green hydrogen and ammonia exports. With abundant renewable energy potential exceeding domestic demand, Sri Lanka plans to utilise green hydrogen to decarbonise key sectors such as transport, manufacturing, and agriculture, while addressing energy storage challenges and transitioning to a low-carbon economy. The roadmap includes phased implementation, targeting infrastructure development, regulatory frameworks, and international collaboration to create a sustainable hydrogen ecosystem. 

Capacity and Capacity targets

Offshore Wind Energy: 

• 40 GW potential over 20-30 years, with excess energy for export as green ammonia. 

Green Hydrogen Production: 

• The initial focus would be on 2 GW electrolyser capacity by 2028. 
• Scale up to 10 GW by 2035 and 30 GW by 2048. 

Export Goals: 

• Focus on green ammonia and hydrogen exports, leveraging proximity to shipping lanes and demand from the Middle East, Africa, and Asia. 

Impact Targets

Decarbonisation: 

• Replace fossil fuels in transportation, industrial processes, and agriculture. 
• Use green hydrogen to address grid instability and enhance renewable energy integration. 

Sectoral Goals: 

• Hydrogen-powered transportation: Transition 10% of heavy-duty fleets by Phase 2 (2028-2035). 
• Industrial heat: Substitute 10% of industrial furnace energy with hydrogen by 2035. 

Economic Growth: 

• Create 4,000 jobs in the hydrogen value chain by 2030. 
• Generate $10 billion in export revenue from hydrogen and ammonia by 2040. 

Policy Spotlight

1. The Sri Lanka Ports Authority (SLPA) is leading a significant project aimed at utilising solar energy to produce green hydrogen at the Port of Colombo as part of its Green Energy Initiative Programme. This ambitious initiative supports global green energy objectives and establishes the port as a pioneer in the use of alternative fuels. During the Colombo International Maritime & Logistics Conference 2024, SLPA Managing Director Eng. Ganaka Hemachandra underscored the critical need to decrease greenhouse gas emissions in port operations, observing that the port accounts for 25% of Colombo’s total energy consumption—approximately 50 MW. 
    

2. In 2023, billionaire Gautam Adani announced plans to establish a green hydrogen plant in Sri Lanka. His conglomerate is already working on a container terminal and a 500 MW wind project in the country. Adani held discussions with visiting Sri Lankan President Ranil Wickremesinghe about these ongoing projects and the proposed venture. 

Financing

Investment Targets: 

• $500 million for offshore energy infrastructure by 2030. 
• $1 billion for domestic hydrogen production and technologies. 
• $10 billion in offshore wind and hydrogen production facilities. 

Incentives and Partnerships: 

• Tax credits, grants, and subsidies to attract private investments. 
• Collaborations with international organizations and countries for technology transfer and market access. 

Public-Private Partnerships: 

• Foster innovation through shared funding and development of pilot projects. 

1. Sri Lanka’s roadmap sets a bold course for achieving energy independence, driving economic growth, and contributing to global decarbonisation efforts by developing a green hydrogen economy. 
2. Sri Lanka has signed a 20-year contract with Adani Green Energy Ltd, part of the Adani Group headed by billionaire Gautam Adani, to establish two wind power plants in the Northern province. This agreement is designed to enhance the country's renewable energy infrastructure. It includes the development of wind power stations in Mannar and Pooneryn, with a combined anticipated capacity of 484 megawatts. This project was approved last February and signifies a substantial investment of $442 million from Adani. 

Government green hydrogen lead 

Ministry of Power and Energy