Mitigation Action Facility Donors have approved funding to support the implementation of an ambitious project in Costa Rica.
Costa Rica has a sufficient supply of water, and its electricity production is more than 98% renewable. These conditions make Costa Rica a suitable location for producing green hydrogen. The project “Green hydrogen for a decarbonised economy in Costa Rica” aims to leverage this potential to produce green hydrogen and reduce emissions in hard-to-abate sectors, such as steel and cement production, and in the heavy-vehicle transport sector.
The project will attract financial backing from national and international banks to support economically viable green hydrogen initiatives in Costa Rica, thereby showcasing their technical, financial, and environmental sustainability. Additionally, it will encourage both private and public decision-makers to champion the production and utilisation of green hydrogen through enhanced coordination, planning, and capacity development.
As the result, a green hydrogen production facility and an ammonia production plant will be constructed, and a fleet of 45 FCEV trucks will be assembled. Cooperation with research centers and training facilities will cultivate a skilled workforce. Policy changes, including a green hydrogen roadmap, and further upscaling will significantly contribute to Costa Rica’s climate mitigation efforts and the transformation of its economy towards carbon neutrality.
Following the approval for a Detailed Preparation Phase (DPP), during which projects work to further elaborate the proposed project outline, a comprehensive Project Proposal was submitted to the Mitigation Action Facility. Based on an in-depth assessment of the Proposal, Donors then approved the project to enter the Implementation Phase 1.
The Mitigation Action Facility’s support for this project illustrates the Board’s continued commitment to ambitious climate action.