Costa Rica is advancing plans for a green hydrogen industry to boost its carbon-neutral goals, with the first hydrogen plant set to begin operations in 2024. This initiative is driven by the country’s need to decarbonize sectors like transportation, agriculture, and power generation.
Green Hydrogen: A Clean Energy Solution for Costa Rica
Costa Rica plans to develop a green hydrogen industry to help achieve its carbon neutrality goals. The country is set to begin operations at its first hydrogen plant in 2024. This move is part of a broader effort to decarbonize key sectors such as transportation, agriculture, and power generation.
Green hydrogen is produced by using renewable energy to split water into hydrogen and oxygen. This process results in a clean fuel that can be used in various applications, from powering vehicles to generating electricity. Costa Rica’s abundant renewable energy resources, particularly in regions like Guanacaste, make it an ideal candidate for developing a green hydrogen industry. Guanacaste has also seen significant developments in solar energy, such as the new 86 MW solar park detailed by PVKnowhow, further solidifying the region’s commitment to renewable energy.
The Role of ICE and RECOPE in Costa Rica Green Hydrogen Development
Costa Rica’s government is taking steps to ensure the successful development of its green hydrogen industry. Two state-owned companies, the Costa Rican Electricity Institute (ICE) and the Refinadora Costarricense de Petrรณleo (RECOPE), will play significant roles in this effort.
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ICE is responsible for most of the country’s electricity generation and will work on incorporating green hydrogen into the energy mix. RECOPE, which deals with fuel distribution, will focus on developing hydrogen infrastructure and applications, particularly in the transportation sector.
Both companies are drafting a national strategy for hydrogen development. This strategy will outline the steps needed to create a competitive and sustainable hydrogen market. It will also address the regulatory framework needed to support the industry’s growth.
Green Hydrogen Plant: A Milestone for Costa Rica
The first green hydrogen plant in Costa Rica is set to begin operations in 2024. This plant will be located in the province of Guanacaste, an area known for its renewable energy potential. The plant will produce hydrogen using electricity generated from wind and solar power. This aligns with Costa Rica’s broader push for solar energy, as discussed in PVKnowhow’s analysis of Costa Rica solar energy challenges and opportunities.
The plant is expected to produce around 1,000 kilograms of hydrogen per day. This hydrogen will be used primarily in the transportation sector, helping to reduce emissions from vehicles and contributing to the country’s carbon-neutral goals.
Costa Rica’s energy minister, Juan Manuel Quesada, highlighted the importance of the plant in a recent interview with BNamericas. He emphasized that the plant is a key step in the country’s transition to a low-carbon economy.
“The construction of this plant is a milestone for Costa Rica,” Quesada said. “It will allow us to take advantage of our renewable resources to produce green hydrogen, which is essential for decarbonizing our economy.”
Expanding Green Hydrogen Applications in Costa Rica
While the initial focus of Costa Rica’s green hydrogen industry will be on transportation, there are plans to expand its use to other sectors. One of the main areas of interest is agriculture, where hydrogen can be used to power machinery and equipment.
ICE and RECOPE are also exploring the use of hydrogen in power generation. Hydrogen can be used as a backup fuel for power plants, providing a clean alternative to fossil fuels. This could help Costa Rica further reduce its carbon emissions and improve the stability of its energy supply.
Additionally, there are plans to export green hydrogen to other countries. Costa Rica’s abundant renewable energy resources give it a competitive advantage in the global hydrogen market. By exporting hydrogen, the country could generate additional revenue and strengthen its position as a leader in renewable energy.
Challenges and Opportunities for Costa Rica Green Hydrogen
Despite the potential benefits, there are challenges to developing a green hydrogen industry in Costa Rica. One of the main challenges is the high cost of production. Producing hydrogen from renewable energy is still more expensive than using fossil fuels.
However, as technology improves and the cost of renewable energy continues to fall, the price of green hydrogen is expected to decrease. Costa Rica’s government is also working on policies to support the industry’s growth and make it more competitive. As PVKnowhow has reported, Costa Rica solar energy adoption faces several challenges that the government is actively trying to overcome.
Another challenge is the need for infrastructure to support hydrogen production, storage, and distribution. This includes pipelines, refueling stations, and storage facilities. ICE and RECOPE are working on plans to develop this infrastructure, but it will take time and investment.



