Transitioning to sustainable economic resilience through renewable energy and green hydrogen: The case of Iraq

Abstract

The study investigates the potential of transitioning Iraq, a nation significantly dependent on fossil fuels, toward a green hydrogen-based energy system as a pathway to achieving sustainable economic resilience. As of 2022, Iraqi energy supply is over 90 % reliant on hydrocarbons, which also account for 95 % of the country foreign exchange earnings. The global energy landscape is rapidly shifting towards cleaner alternatives, and the volatility of oil prices has made it imperative for the country to diversify its energy sources. Green hydrogen, produced through water electrolysis powered by renewable energy sources such as solar and wind, offers a promising alternative given country vast renewable energy potential. The analysis indicates that, with strategic investments in green hydrogen infrastructure, the country could reduce its hydrocarbon dependency by 30 % by the year 2030. This transition could not only address pressing environmental challenges but also contribute to the economic stability of the country. However, the shift to green hydrogen is not without significant challenges, including water scarcity, technological limitations, and the necessity for a robust regulatory framework. The findings underscore the importance of international partnerships and supportive policies in facilitating this energy transition. Adopting renewable energy and green hydrogen technologies, the country has the potential to become a leader in sustainable energy within the region. This shift would not only drive economic growth and energy security but also contribute to global efforts towards environmental sustainability, positioning country favorably in a future low-carbon economy.