Costa Rica Explores Green Hydrogen Opportunities In Hard-To-Decarbonise Sectors With Backing From The Mitigation Action Facility

Costa Rica has begun evaluating the feasibility of applying green hydrogen in key sectors such as industry, agriculture, and heavy-duty transport. This effort is part of the Costa Rica Green Hydrogen project, which is supported by the Mitigation Action Facility. With an electricity grid powered almost entirely by renewable energy, the country is in a strong position to explore green hydrogen as a crucial step toward achieving carbon neutrality.

Deputy Minister of Energy Ronny Rodríguez explained that Costa Rica’s renewable energy resources create an ideal environment to test green hydrogen in practical business cases that can inform national policy. One area of particular interest is the production of green ammonia in the Huetar Norte region, a rural area facing economic challenges. Establishing a hydrogen hub in this region could stimulate local economic growth while advancing Costa Rica’s clean energy goals.

Ronny Rodríguez, Deputy Minister of Energy of Costa Rica, stated, “This is a unique model; it means Costa Rica has tremendous support and represents an opportunity to build capacity in the private and public sectors, along with State leadership, to explore a new energy source. We need to reduce the accumulation of carbon in the atmosphere, and this is one of the energy vectors with the greatest potential for the future. The idea is to generate knowledge for new generations and give them another tool to mitigate the effects of climate change.”

The initiative goes beyond the production and commercialization of hydrogen. Plans include creating a dedicated training institute to provide hands-on education and capacity development in hydrogen technologies. Additionally, an ISO certification institute for hydrogen is envisioned to address current certification gaps and to support the development of a hydrogen-based economy.

Costa Rica has a long history with hydrogen innovation, having begun experimentation more than ten years ago. It was once the first and only country in Latin America to produce and use green hydrogen in the transport sector. Although leadership in the field has since shifted to other nations such as Chile and Colombia, the new project aims to strengthen Costa Rica’s decarbonization strategy and help the country regain its position as a regional leader in green hydrogen.

The project is being implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, which is currently working to establish a partnership with the United Nations Industrial Development Organization (UNIDO). This collaboration is expected to further advance hydrogen applications in Costa Rica’s industrial sector and accelerate the country’s transition to a low-carbon economy.