Green Hydrogen Valley for Caribbean

A Green Hydrogen Valley is to be developed on the island of Aruba by Acciona Energia and the state-owned energy entities.

The proposed Green Hydrogen Valley, believed to be a first in the Caribbean islands, will comprise a green hydrogen plant powered by a self-consumption renewable energy generator.

The electricity generated will be used to produce green hydrogen and the excess will be used internally on the island to reduce the use of imported fossil fuels and to support its decarbonisation and the drive towards a renewable-powered future.

The project will utilise land currently owned by the state-owned refinery, Refineria di Aruba, while the electricity utility Elmar will manage the energy distribution and transmission across the network.

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Acciona Energía has indicated in a statement that it will work with the energy entities to develop, construct and operate the hydrogen ecosystem, as well as to explore supplementary uses for the green hydrogen, including export opportunities.

The Aruba government considers the Green Hydrogen Valley as a new development for the entire refinery area and it has some degree of urgency, with the use of heavy fuel to be phased out for energy generation by September 2025.

A recent report from the Inter-American Development Bank indicates that the Caribbean, with its priority to enhance its energy security with resilient and low-carbon technologies, offers opportunities for the development of a hydrogen economy.

Driving factors could include the need for most of the countries to reduce their high reliance on fossil fuels and the abundant and untapped renewable energy potential.

Nevertheless, the overall demand in the region is likely to be relatively small, with the main use likely to be for ammonia production, as is proposed with the Kenesjay Green initiated NewGen development in Trinidad and Tobago, but other potential local opportunities suggested include powering hydrogen ferries.

Other hydrogen projects in the region are at various stages of development in Barbados and Martinique by HDF Energy, which also is the majority owner of the NewGen project, and by Kenesjay Green in Dominica.

HDF Energy also has the CEOG hydrogen valley project underway in French Guyana.

A hydrogen valley, of which more than 80 are in development around the world, is broadly defined as being large in scale with a two-digit multi-million euro investment, providing high-value chain coverage, having a geographically defined scope and supplying more than one sector of application.