Environmental risk assessment of alkaline electrolyser’s global value chain actors

Title (eng)
Environmental risk assessment of alkaline electrolyser’s global value chain actors
Author
Elissa Mitsuko Tokusato
Description (eng)
This study provides a global overview of the biodiversity and water-related risks associated with key actors in the Global Value Chain (GVC) of alkaline electrolysers (ALK), one of the most mature pieces of equipment for advancing green hydrogen production. While there is a concentration of raw material extraction (necessary for ALK green hydrogen production) in the Global South, the ALK green hydrogen sector is concentrated in the Global North. The inequitable access is plain and essential to enabling the just energy transition. Using a GVC perspective, the study complements existing life cycle assessments (LCA) by identifying broader environmental risks such as increased water footprint and reputational concerns. It presents risks across the GVC stages—ranging from nickel and zircon mining to ALK projects and nickel recycling—including water quality, pollution, and historical conflicts over water resources. Specific environmental impacts like water scarcity, biodiversity loss and deforestation, vary by stage and could be tackled as such. Actors in the Global South, mostly nickel producers, who are the first tier of the GVC, are the most exposed to acute climate risks such as tropical cyclones, landslides, flooding, and drought, which urgently drive the need for climate adaptation measures. Recommendations include improved transparency (especially in the first GVC stages), community engagement, and enhanced water management which is tailored to regional needs. These strategies can support businesses in meeting new sustainability reporting standards and adapting to evolving value chains. Despite data gaps and inconsistencies in risk assessment tools (particularly indigenous and local community lands and water scarcity indicators), this study calls for a broader and inclusive approach to the green hydrogen economy.
Keywords (eng)
Green hydrogenAlkaline electrolyserGlobal value chainNature-related risks
Type (eng)
Language
[eng]
Date created
2024