The Petroleum Division has prepared a concept note to introduce green hydrogen in Pakistan to replace imported fossil fuels that cost billions in foreign reserves and contribute to global greenhouse emissions.

According to Business Recorder, the Secretary Petroleum sent the concept paper to M/s GIZ, the Federal Ministry of Economic Cooperation and Development, Germany, the World Bank, UNDP, and the Ministry of Climate Change in a letter.

The letter noted the global acceptance of hydrogen as a sustainable energy source and its potential to help Pakistan save foreign reserves and meet its climate change NDCs.

The letter states that the international community must invest heavily in R&D to produce hydrogen in Pakistan due to climate financing.

To create the strategy, PD requested input from all key ministries. It will need identifying major economic sectors suited for hydrogen consumption, acceptable venues, feasibility studies to assess hydrogen as an energy source across various sectors, the cost of production and delivery, and hydrogen demand.

The ministry has also recommended public-private partnerships for research and development through incentivizing private parties.

Pakistan imported $21.4 billion in fossil fuels for transportation and electricity generation last year, about 66% of its foreign reserves. Pakistan, one of the most susceptible nations to climate change, emits nearly 70% of its greenhouse gases from the energy sector.

Hydrogen is one of the most creative and environmentally friendly energy sources, contributing 2.5 percent to global energy consumption. The technology can solve various difficulties in Pakistan, however there are several obstacles.