Countries with limited potential for renewables could save up to 20% of costs for green steel and up to 40% for green chemicals from green hydrogen if they relocated their energy-intensive production and would import from countries where renewable energy is cheaper, finds a new study by the Potsdam Institute for Climate Impact Research (PIK).
This ‘renewables pull’ would create strong incentives for businesses to invest in low-emission production facilities in these renewable-rich countries. Renewable-scarce countries could put all focus on down-stream production and refinement as the smart way to secure industrial competitiveness.
