Unlocking Ukraine’s Hydrogen Opportunity: A Roadmap
About this report
Ukraine’s energy sector has been severely affected by the Russian Federation’s full-scale invasion. The power sector went from having a large capacity surplus before the war to a power deficit in 2024 due to Russia’s attacks. This has focused attention on energy security and restoring the reliability of supply. Hydrogen demand from conventional applications in refining and ammonia has also plunged, falling 80%, with most of these assets in southern Ukraine, where the frontline and occupied areas are located. Overall economic damage from the war has been extensive, with reconstruction costs previously estimated by the World Bank at more than USD 0.5 trillion – three times Ukraine’s GDP.
Reconstruction offers an opportunity to build back better. In the energy system, this means strengthening energy security and reducing GHG emissions. The use of low-emissions hydrogen in industrial applications can provide the dual benefit of lowering GHG emissions and supporting the development of an export-oriented industrial base that can help to restore the fiscal balance. This is a long-term opportunity that will not happen overnight, but efforts need to start today to progressively build the experience required to enable such an industry in the future.
The report identifies the actions required across four pillars (physical assets, regulation, financing and cross-cutting areas) and three time horizons (covering from 2 to 20 years), in order to provide a roadmap to enable the renewable hydrogen opportunity.