Renewable Hydrogen in Türkiye’s Decarbonization Path: Priority Application Areas and Policy Recommendations

Executive Summary

Following its commitment to the Paris Climate Agreement in 2021, Türkiye has pledged to transition to a net-zero emissions economy by 2053, necessitating a radical transformation across energy-intensive sectors such as industry, buildings, and transportation. While direct electrification and energy efficiency are core components of this transition, they offer limited solutions for long-distance transport and industrial processes requiring high-grade heat. Consequently, renewable (green) hydrogen is crucial for decarbonizing these ""hard-to-abate"" sectors. To build a sustainable hydrogen ecosystem, Türkiye has established a roadmap aiming for 5 GW of electrolyser capacity by 2035, emphasizing the need to prioritize hydrogen deployment in sectors that yield the highest immediate value. Globally, support mechanisms like the U.S. Inflation Reduction Act (IRA) and the EU Hydrogen Bank are bridging the cost gap between green and fossil-based hydrogen through tax breaks and production subsidies. Despite these international advances, high production costs, along with infrastructure and financing hurdles, currently slow investment momentum in Türkiye. This study by the SHURA Energy Transition Center identifies the priority sectors for hydrogen usage in Türkiye through detailed cost-benefit analyses. It aims to guide the formation of a local hydrogen market and ecosystem by providing actionable policy recommendations to achieve the 2053 decarbonization targets.

Introduction 

Türkiye became a party to the Paris Climate Agreement in November 2021 and subsequently committed to transition to a net-zero emissions economy by 2053. With this development, Türkiye has taken its place in the fight against global climate change and has begun developing new actions and policies in the axis of increasing renewable energy, energy efficiency, and electrification applications, which are considered to be the main components of the energy transition. In the context of the energy transition and in parallel with the decarbonization of the electricity sector, a radical transformation is also required in energy-intense end-use sectors (e.g. buildings, industry, and transportation). Direct electrification and energy efficiency applications come to the fore in the decarbonization of sectors that are heavily dependent on fossil fuels, especially industry, buildings, and transportation. However, with existing technologies, direct electrification offers limited application areas in long-distance transportation and for the industrial sector, where high process heat is needed. Therefore, new technologies such as renewable (green) hydrogen are needed to ensure the decarbonization of these sectors.