CBAM Mitigation Through Green Hydrogen Is It Actually a Cos…

CBAM Mitigation Through Green Hydrogen Is It Actually a Cost Saving for Trinidad & Tobago? – (Groups 5 and 6)

Can green (or low-carbon) hydrogen meaningfully reduce CBAM exposure for Trinidad & Tobago exports, and does that reduction outweigh the cost of producing green hydrogen?

Students must quantify and compare two export pathways:

1. Conventional pathway (baseline): fossil-based hydrogen embedded in ammonia / fertiliser exports (or other CBAM-relevant exports).
2. Mitigation pathway: green or carbon-neutral hydrogen substitution via an approach consistent with NewGen-style production (electrolysis powered by renewables and/or waste heat electricity).

Structure

• CBAM timeline: transitional reporting and definitive regime start.
• Covered sectors relevant to T&T (fertilisers/hydrogen).

T&T Export Exposure Map

• Identify which T&T exports are CBAM-exposed (focus on fertilisers/ammonia value chain if appropriate).
• Explain Point Lisas relevance and the hydrogen/ammonia link.

Baseline Emissions & CBAM Liability Model

Students must:

• Define embedded emissions approach and boundaries
• Build a simple CBAM cost model:

Mitigation Scenario: Green Hydrogen Substitution Economics

Students must estimate:

• Cost of hydrogen via electrolysis (use electricity cost assumptions + electrolyser efficiency range + capacity factor; cite sources).
• Incremental cost per tonne of product (e.g., ammonia) when switching part/all hydrogen input to green H2.
• Expected emissions reduction and thus CBAM liability reduction.
• Electrolysis + renewables + waste heat electricity concept
• benefits can be referenced, but the grade depends on their own calculations.

Net Result: Is It a Cost Saving?

Must show:

• Break-even analysis: At what carbon price/ capacity factor does green H2 become net-positive?
• Sensitivity analysis (at least 3 variables):
• EU carbon price proxy (/tCO2e)
• Electricity price ($/MWh)
• Electrolyser efficiency (kWh/kgH2) and/or capacity factor
• Export volume / product emissions intensity

Strategic Interpretation for T&T

• If green H2 is not net-saving under most cases: what does that imply? (e.g., CBAM as a risk-management cost rather than pure savings)
• If it is net-saving in some cases: what are the enabling conditions? (renewables scale, policy, certification of origin, etc.)

Recommendations

• 35 quantified recommendations, e.g.:
• minimum renewable MW required,
• target electricity price thresholds,
• certification priorities,
• phased approach (partial substitution first).

References

• Must include CBAM primary sources and technical/economic data sources

Marking Rubric

Criteria

Weight

Quantitative evaluation & calculations

25%

Strategic interpretation of results

15%

Application to T&T industrial context

10%

Citation, referencing & data credibility

30%

Slide quality & visual communication

10%

Oral delivery & defence

10%

Total

100%