Mongolia is characterized by its abundant renewable energy resources, high solar power potential and optimal wind conditions, but faces the challenge of developing low-carbon measures for carbon-intensive sectors such as heat supply, electricity, and transportation. Future efforts will depend on how broadly the country can integrate clean energy sources while reducing use of coal, and the adoption of innovative technologies. Hydrogen, with its high energy density under certain conditions, is an energy carrier that is suitable for storage applications such as batteries. Currently, green hydrogen is not explicitly integrated into Mongolia's domestic energy or climate policy framework. In order to deploy it more broadly, several issues such as production costs and infrastructure development still need to be addressed. It is necessary to secure sufficient renewable energy for hydrogen production, and to select and install appropriate electrolyzers based on both the amount of hydrogen demand and the amount of electricity generated from renewable energy sources. The cost of electrolysis equipment to be installed is also a concern. Regarding transportation of green hydrogen, if the hydrogen production and demand areas are far apart, it is necessary to consider whether to liquefy the hydrogen or to convert it into other carrier compound such as ammonia or MCH4. For utilization, it is necessary to consider the appropriate technical method for cogeneration of heat and power by green hydrogen (or conversion to fuel cells, etc.), taking into account the off-taker demand and the above considerations for production and transportation.
A feasibility study will be undertaken to assess green hydrogen production possibilities using electricity from renewable energy farms already in operation in Mongolia, to be transferred and used for hydrogen fueled gas turbine for cogeneration of heat and power supply. An additional study will be conducted to identify the necessary permits and funding possibilities. The following activities will be implemented: 1) Survey on green hydrogen production. Investigation of the amount of renewable energy that can be utilized, comparison of electrolyzers, and study on water resources and adaptation measures. 2) Survey on green hydrogen transportation. Investigation and selection of the optimal method of transportation and storage facilities. 3) Survey on green hydrogen utilization. Investigation of energy demand by the off-takers (hydrogen customers), study of heat and power supply system using green hydrogen.
If Mongolia's high renewable energy potential can be utilized to produce green hydrogen, GHG and air pollutant emissions from coal combustion can be completely eliminated within the target area. Production of green hydrogen using excess renewable energy will function as a storage battery, contributing to resolve the instability in the power system in Mongolia caused by the massive introduction of renewable energies since 2013. Enhancing energy storage capacity will also increase the amount of renewable energy that can be connected to the Mongolian power grid. If combined heat and power generation technology using green hydrogen can be deployed in Ulaanbaatar, up to 1.64 million people could benefit. The technical assistance will contribute to Mongolia's NDC, which targets a GHG reduction of 22.7% by 2030 compared to 2010 levels, and which calls for increasing domestic solar power generation to 145 MW by 2030, wind power to 354 MW, and the share of renewable energy to 30%.