An Economic Assessment of Hydrogen Energy Production in Norway and the Context of UN SDG

United Nation’s Sustainable Development Goals (SDGs) target is to develop a society which is not only economically prosperous but also socially inclusive, environmentally sustainable and well governed. The global attempt to... [ view full abstract ]

United Nation’s Sustainable Development Goals (SDGs) target is to develop a society which is not only economically prosperous but also socially inclusive, environmentally sustainable and well governed. The global attempt to protect the environment against economic growth, global warming and recent oil crisis which increased the demand for more secure energy, is a great incentive to shift to renewable energies. One of the problems associated with renewable energies is intermittency. Renewable energy-based hydrogen systems appear to be an interesting solution. Hydrogen energy is a secondary energy carrier that can be produced from different types of resources, both renewables such as hydro, solar, wind, geothermal energies and biomass, as well as non-renewables like natural gas, coal, nuclear energy and from municipal waste. Norway is rich in natural resources and has a great potential in producing renewable energies. The main intention is to become a low or even zero emission society. Therefore, hydrogen energy is expected to become an important part of the energy system and play a significant role in transition to green fuels in the near future. In order to have a better understanding of the best usage of the hydrogen energy, socioeconomic analyses are carried out in this paper. Both qualitative and quantitative data collection methods are being used. The cost benefit analysis of hydrogen energy production in Norway which is presented in this paper is useful to figure out how Norway can create competitive advantage by adding hydrogen energy to their energy system. This quantitative approach is used to identify all the negative impacts (costs) and positive impacts (benefits) related to each option under consideration required for a cost benefit analysis. Qualitative approach is used for literature reviews and interviews. Results provide knowledge about the issues related to environmental, social and economic sustainability of hydrogen energy and its future perspectives. Therefore, this research can help policy-makers make better decisions for utilizing green sources of energies. Findings demonstrate that hydrogen can be an economically feasible product. It is concluded that Norway not only gains economic benefit from hydrogen energy production but also reduces negative environmental externalities.

Keywords: Hydrogen Energy, Sustainability, Green Energy Resources