Sri Lanka's Green Hydrogen Strategy: Import vs. Local Production
Sri Lanka is evaluating whether to import Chinese green ammonia or produce its own green hydrogen, with implications for energy security and local industry. The decision hinges on costs and long-term strategic benefits of local production versus short-term savings from imports.
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Sri Lanka's Board of Investment (BOI) has called for proposals from global companies to generate green hydrogen, focusing on Trincomalee for bunkering locations. The analysis indicates that importing Chinese green ammonia could be cheaper than local production due to lower electricity costs in China and existing shipping technologies.
However, local production may yield long-term benefits, including job creation and technology transfer, especially if Sri Lanka develops its offshore wind and solar resources. A detailed cost comparison is necessary, factoring in the landed cost of ammonia, cracking expenses, and local renewable energy costs, to inform the best approach for the country's energy and industrial strategy.
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