Budget 2023 and Renewables – George Mangion, Senior Partner, PKF Malta

Now that we are seeing the end of the pandemic tunnel, Malta is facing a new obstacle to growth, as oil and gas prices plus imported inflation are again at a high peak. This is another obstacle for a fast recovery and balancing our national deficit.

GEORGE MANGION, SENIOR PARTNER, PKF MALTA

As regards renewables, this topic has garnered more importance to achieve a de-carbonisation status. A lower investment in oil exploration had a spillover effect on the production of natural gas, which is often a by-product of drilling for crude. Added to that is a dearth of liquefied natural gas terminals for shipping gas from places where it remains relatively easy to access.

This has pushed the price for LNG to record highs. Look to Germany, and we augur its national hydrogen policy, which highlights the potential and the opportunities of green hydrogen. The core mission is to replace fossil fuels particularly gaseous and liquid energy sources, which are an integral part of Germany´s energy supply.

Our 2023 budget may help if it attracts foreign investors to set up infrastructure in the exclusive economic zone (particularly Hurd’s bank) installing sophisticated production facilities. Green hydrogen is created by using electricity to split water into hydrogen and oxygen through a process known as electrolysis. The hydrogen is collected and used, primarily in industry, electricity generation, while oxygen is released as a by-product.

This is captured for use by others. The good news is if the Transport Minister is successful to convert fleets and visiting cruise liners replacing internal combustion engines by a technology called a hydrogen fuel cell that uses hydrogen as its power source.

Powering these vehicles with renewable hydrogen makes them truly zero-carbon. There are many reasons that speak for hydrogen: such as meeting climate targets for 2030, and greenhouse gas neutrality targets for 2050. n

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