The importance of hydrogen in driving industrial clusters’ development has been underlined by a dedicated forum at Davos and expansion of a World Economic Forum (WEF) initiative.
First launched at COP26 in 2021, and developed in collaboration with Accenture and EPRI, the Transitioning Industrial Cluster initiative now comprises 33 clusters in 16 countries. The 13 new members are:
- Kerala Green Hydrogen Valley (India): This zone in Kerala is central to India’s decarbonisation efforts by scaling hydrogen-powered transport.
- Cartagena Industrial Cluster (Colombia): Connected to the largest port-based industrial zone, this industrial cluster is uniquely positioned to become a strategic hub for the production, storage, distribution, shipping and use of clean hydrogen and low-carbon fuels.
- Gopalpur Industrial Park (India): Strategically located, the industrial park provides an exemplary ecosystem to attract investments from sectors leveraging new technology, including green energy.
- Hunter Region (Australia): The Hunter region is a hub of innovation and industry diversification, fostering collaboration across sectors to support growth in the emerging energy economy. The Hunter region showcases new technologies and advances low-carbon strategies to drive sustainable economic development.
- Jubail Industrial City (Saudi Arabia): Since outlining a plan in 1975 for an industrial city, the Jubail cluster has developed holistically, allowing synergies between co-located industries to minimise their carbon footprint.
- Kakinada Cluster (India): Coordinated by AM Green, this port-anchored hub in Andhra Pradesh works to provide industrial decarbonisation solutions, including green ammonia, hydrogen and sustainable aviation fuel.
- Mundra Cluster (India): Located in Gujarat, the Mundra Cluster integrates green power initiatives with infrastructure to support large-scale industrial projects.
- Mumbai Green Hydrogen Cluster (India): This industrial hub in Maharashtra is accelerating the green hydrogen economy, linking industries with sustainable energy sources.
- Port of Açu Low Carbon Hub (Brazil): Leveraging Brazil’s competitive advantage in renewable energy and biofuels, as well as the port’s infrastructure, the cluster aims to deliver comprehensive decarbonisation solutions for a range of hard-to-abate sectors.
- Port of Rotterdam (Netherlands): As Europe’s largest port and logistics hub and a leader in green hydrogen corridors, this industrial area is connecting renewable energy production to industries across Europe.
- Saraburi Sandbox (Thailand): Located in Saraburi Province, this model for a low-carbon city focuses on advancing clean energy solutions and circularity, reducing emissions from the heavy-emitting cement sector, and creating nature-positive ecosystems.
- The Solent Cluster (UK): Aiming to become a leading centre for low-carbon investment, The Solent Cluster will grow the regional economy, protect skilled jobs, and create new employment opportunities for low carbon energy technologies and industries.
The 33 signatories together represent potential carbon dioxide-equivalent emissions reductions of 832 million tonnes – approximately the annual emissions of Saudi Arabia.
Roberto Bocca, Head of the Centre for Energy and Materials, World Economic Forum, said, “Connecting industrial clusters across geographies and industries will accelerate the energy transition and foster a more resilient and sustainable global economy.”
Stephanie Jamison, Global Resources Industry Practice Lead and Global Sustainability Services Lead at Accenture, said these industrial leaders are adopting digital technology to accelerate the deployment and optimisation of Net Zero infrastructure.
“The shortest path to technology deployment is the one paved through collaborative innovation,” added Neva Espinoza, EPRI Senior Vice-President of Energy Supply and Low-Carbon Resources. “The addition of 13 industrial clusters to this global initiative reflects the vital importance of bringing all stakeholders together to deploy the advanced energy technologies, low-carbon fuels and supporting infrastructure at the foundation of net-zero economies.”
The Forum’s report, Unleashing the Full Potential of Industrial Clusters: Infrastructure Solutions for Clean Energies, outlines solutions for clusters in the wider energy value chain. Case studies include Zero Carbon Humber and HyNet North West cluster.
Uniting supply and demand
Speaking at the ‘Industrial clusters as energy pioneers’ panel in Davos, Jacques Vandermeiren, CEO, Port of Antwerp-Bruges, said ports are at the crossroads of the energy transition and leaders in change. “We have the supply coming in, and we have the offtakers, and own the infrastructure and storage capacity, liquefaction and terminals,” he said.
While Rotterdam is a commercial rival, he said when it comes to the transition, “there is no competition”, as both ports can serve as a conduit for molecules and electrons to the wider hinterland.
Permitting and capital remain key issues to overcome, he added, and bridging the green premium.
Orlando Cabrales Segovia, CEO, Frontera Energy, outlined developments at Cartagena port. “We have the potential to become a hub for producing, storing and shipping green hydrogen and green ammonia,” he said. “We are making hydrogen pilots in the country, small scale, and we are engaging with different stakeholders. The challenge is not only to build a clean fuels infrastructure but also a clean power one too. The advantage of Colombia is it already has a clean energy matrix.”
Sara Aagesen Munoz, Deputy Prime Minister for Ecological Transition and Demography of Spain (pictured), said it is seeing sharp growth in green hydrogen and renewable energies. “Five years ago, green hydrogen was something for research, for academia. Then in 2020 we launched a call for interest and received 28 (applications); six months later we launched a new one and received 500.”
She added financial incentives and tenders have continued to fuel project interest. “But we need more money as we have lots of projects,” she said. “Clusters in green hydrogen are really important as we match the supply with the demand side.”
Rosan Perkasa Roeslani, Minister of Investment and Downstream Industry, Ministry of Investment of Indonesia, said it has identified 3,700 GW of renewables potential. “So far less than 1% has been installed,” he said. “We need to work with foreign parties to accelerate our goals and become Net Zero. We are still using fossil fuel based energy, up to 60%, and we are one of the biggest producers of coal – which is still one of the most competitive in terms of pricing.”
A question from the floor asked how clean energy infrastructure can be developed before demand materialises.
“Governments need to give clear signals to investors,” said Munoz. “We need massive investments now, with urgency, and those partnership between public and private companies, with clear objectives on both sides.”
Vandermeiren was familiar with the ‘chicken and the egg’ scenario but said you need to develop a long-term vision, otherwise major investments will not happen. “That’s why five years ago we acquired a pipeline company, along with a drone and digital company – it says we have to look differently at the potential of the port. We are patient investors, if it takes 40 or 50 years, we can live with it.”
