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GREEN HYDROGEN
AFRICA WARMS UP TO GREEN HYDROGEN AS A CRITICAL DRIVER OF CLEAN ENERGY TRANSITION
Today, 600 million people in Africa do not have access to electricity and 900 million lack access to clean cooking facilities, according to a report from the International Energy Agency (IEA). The situation is expected to worsen further as Africa’s overall population exceeds the 2 billion in 2040. Based on current policies and plans, IEA projects that Africa will need to produce 60% more energy than it does today to adequately meet the need of the future generations. As the continent prepares itself for one of largest process of urbanisation the world has ever seen, clean energy transition is an opportunity for many African countries to providing affordable, reliable, sustainable and modern energy for all its citizens.
When it comes to clean energy sources, Africa’s energy potential is second to none. According to statistics provided by the African Development Bank in 2017, Africa’s untapped renewable energy potential is estimated at 350 GW for hydroelectric energy, 110 GW for wind energy, 15 GW for geothermal energy and 1,000 GW for solar. Green hydrogen, produced by splitting water into hydrogen and oxygen using renewable electricity, is emerging as one of the leading options for storing energy from renewables. West Africa alone has generating potential of up to 165,000 terawatt-hours (Twh) of green hydrogen per year, according to estimates from the German federal research ministry. This is an immense potential given that current estimates show that primary energy demand in sub-Saharan Africa would reach nearly 14,000TWh by 2050 and the global consumption would rise to 300,000TWh. African countries have started warming up to this technology given its potential to equitably distribute renewable energy and even harness
By Alphonce Okoth
more for export. From Northern Cape in South Africa to Rabat in Morocco, green hydrogen projects are springing up and may potentially change the course of Africa’s clean energy transition.
Southern Africa stands out in the continent as the leading adopter of green hydrogen technology. South Africa, the regions largest economy, already has plans to produce about 500 kilotons of hydrogen annually by 2030. The rainbow nation has several unique advantages that make it uniquely placed to lead the charge towards green hydrogen in the continent. The country has deep expertise in the Fischer-Tropsch process (which is used in the production of power fuels), an abundance of renewable energy sources, and is the world's largest producer of Platinum Group Metals (PGMs), one of the key ingredients in the production of green hydrogen. The emergence of hydrogen technologies could allow the government to reverse the raw exports of PGMs by creating a more integrated domestic value chain. In fact, the Platinum Valley Initiative (PVI) is one of the four catalytic projects identified in the strategy document to kick-start the country’s hydrogen economy.
A recent report by the National Business Initiative says that South Africa, leveraging its comparative advantage, could produce green hydrogen for US$1.60 per kg by 2030, one of the lowest costs worldwide. This could help the country reach its goal of doubling its current share of global hydrogen production by 2050— from 2 to 4 percent. Green hydrogen can also help South Africa decarbonize. Once it is stored, the hydrogen can be used in different applications such as fuel for cars, refining petroleum, treating metals, producing fertilizer, and processing foods. As the world’s 14th-largest emitter of greenhouse gases, adoption of green hydrogen is of necessity and could help the country reach a net-zero economy by 2050.
Namibia, also as endowed as South Africa in terms of renewable energy resources and PGMs, is also developing its first hydrogen megaproject, set to produce roughly 300,000 tons of green hydrogen per year. Located near Tsau Khaeb National Park, the site represents one of the most resource-rich locations globally for co-located onshore wind and solar resources. Hyphen Hydrogen Energy has been selected as the preferred bidder for the project and will complete its construction in phases. The first phase will produce 2GW of renewable electricity by 2026, to be used for green hydrogen production and carries an estimated cost of US$4.4 billion. Further expansion is expected to take place in the next few years, expanding renewable generation capacity to 5GW and creating 3GW of electrolyser capacity at a total estimated cost of US$9.4 billion. Given that Namibia’s Budget was US$12 billion in 2020, such an investment is steep, but Namibia is confident that it can attract the necessary funding to set the ball rolling. The country has already received expressions of interest from Germany which has already pledged €40 million towards the project. Belgium and the Netherlands have also expressed interest in the project.
Angola, Namibia’s northern border, is also making concrete steps to exploit its considerable potential to produce green hydrogen. Angolan state-owned oil and gas company, Sonangol signed a preliminary agreement in 2021 with German engineering companies, Conjuncta GmbH and Gauff GmbH & Co Engineering Kg, for the implementation of a factory to produce green hydrogen. The proposed plant is expected
to produce around 280,000 tons of green ammonia for export starting in 2024.
NORTH AFRICA, THE NEXT GREEN HYDROGEN GROWTH FRONTIER
North Africa’ immense renewable energy sources make it an attractive hub for investments in green energy. IRENA’s renewable energy roadmap for Africa 2030 indicates a feasible expansion capacity of 70 GW of wind and 50 GW of concentrated solar power and PV in North Africa. The region’s proximity to Europe, which is looking to import 10 million tons of renewable hydrogen annually to replace fossil fuels in several industries and vehicles, makes investments in green hydrogen even more attractive.
In the race to become Africa’s green hydrogen hubs, two countries- Morocco and Egypt, stand out for their ambitious renewable energy targets and concrete steps to enhance the hydrogen revolution. Morocco ranks among the top five countries with the potential to produce competitive green hydrogen alongside the United States, Saudi Arabia, Australia and Chile. The country has adopted a green hydrogen roadmap to accelerate the national transition to green hydrogen. According to the report, Morocco’s national demand for the green hydrogen and its derivatives is expected to reach 4TWh in 2030 and require 2GW in renewable energy sources — half of the kingdom’s already installed capacity.
Projects currently underway in Morocco include Green H2 cluster, a 5 hectares R&D pilot platform dedicated to studying the potential of green ammonia in Morocco. Launched in 2021, the project is being led by the solar and new energy research institute (IRESEN) and the University Mohamed VI of Benguerir. More recently, Moroccan phosphates and fertilizer producer OCP Group signed a partnership agreement with Shell Energy and Mohammed VI Polytechnic University (UM6P) to develop another pilot project assessing the feasibility of its own large-scale integrated production facility of green hydrogen and low-carbon ammonia.
Egypt’s pipeline for green hydrogen projects stands at 11.62GW, equivalent to over 1.57 million tons of green hydrogen, ranking the country in the top three green hydrogen pipelines globally, after Australia and on par with Mauritania. The North African country has some favourable factors including geographic location, natural gas infrastructure, liquefaction facilities, bunkering market, and marine ports, as well as its high solar and wind potential that make it attractive to investors in green energy. Egypt has, so far, has signed several partnerships deals with Independent Power Producers and Memorandum of Understanding with foreign investors to boost its green hydrogen production capacities. French utility EDF and ZeroWaste signed an MoU with Egypt's Suez Canal Economic Zone to produce 350,000 tons of green fuel annually in the Ain Sokhna region for ships, vessels, and tankers crossing the Suez Canal. The US$3 billion project will produce 140,000 tons of green ammonia in phase 1 using close to 25,000 tons of green hydrogen from desalinated seawater and renewable energy as feedstock. Capacity will then gradually increase to 350,000 tons of green ammonia production per year.
AMEA Power, a subsidiary of Al Nowais Group, also inked an MoU with the Suez Canal Economic Zone to produce 390,000 tons of green ammonia per year in Ain Sokhna for IN NUMBERS
350GW
ESTIMATED UNTAPPED RENEWABLE ENERGY POTENTIAL FROM HYDROELECTRIC ENERGY IN AFRICA
The beautiful thing with africa is when a business opportunity dries up, another one springs up next to it.
export purposes. In addition, Norway’s Scatec announced plans to develop a US$5 billion green hydrogen and ammonia facility, which will also be in the Suez zone. Scatec’s project will be capable of producing 1 million tons of green ammonia annually and could potentially expand to 3 million tons. The green ammonia will mainly be exported to European and Asian markets, where demand for clean ammonia is increasing rapidly.
Other projects in the country come from the Danish shipping company Maersk, Masdar, Demi, and Fortisky Future. In total, Egypt’s estimated investments in green hydrogen projects through 2030 total US$41.5 billion dollars, with an expected investment volume of US$81.6 billion dollars beyond that, according to official source cited by Energy News. Almost 80 percent of the announced green hydrogen projects in Egypt are planned for the Suez zone, a global logistics hub that connect Europe, Africa, and Asia through the Arabian Gulf and is responsible for 20 percent of the international container trade and 10 percent of the seaborne trade.
Not to be left behind, Algeria is also exploring its own potential for green hydrogen. Sonatrach, Algeria’s national oil company recently signed an MoU with Italian energy major, Eni, which will see the companies collaborate on a green hydrogen pilot project aimed at decarbonizing operations. The proposed project will be located in Bir Rebaa North (BRN) in the Algerian desert and will support operations at the BRN gas plant – operated by the joint venture company, Sonatrach-Eni GSE.
REST OF AFRICA PLAYS CATCHUP
The enthusiasm for green energy is however not reverberating across the entire continent. Countries in the east, central, and west of Africa have been rather slow in adopting green hydrogen. Mauritania, a country in the north western part of Africa is shining the light in this region with its US$3 billion green hydrogen project. Dubbed "Project Nour", the project spearheaded by London-listed Chariot Energy Group will have an installed capacity of 10 GW and could become one of the world’s largest green hydrogen projects by 2030. Even before completion, the project has already inked a deal with the Dutch Port of Rotterdam for the import of an estimated 600,000 tons of green hydrogen.
Kenya, recognizing the potential of green hydrogen, joined South Africa, Egypt, Morocco, Namibia, and Mauritania in founding the Africa Green Hydrogen Alliance. The alliance targets to accelerate the transition from fossil fuels overreliance and shift to new energy technologies that open up access to clean, affordable energy supplies to all. Nigeria has also woken up to the reality of a green hydrogen future and recently partnered with Germany to set up a hydrogen office in the country’s capital Abuja. The office will expand the activities of the German-Nigerian energy partnership, create a platform where decision-makers, experts and companies from both countries can network, and to offer expert advice on the opportunities and challenges posed by the hydrogen economy.
A WORLD’S ENERGY POWERHOUSE
Green hydrogen has the potential to transform Africa from an energy deficient continent into a world energy powerhouse. Many African countries can produce green hydrogen precisely because of natural and readily available solar and wind energy potential. Another advantage that Africa possesses is the availability of large tracks of non-arable land that can be used for large scale renewable energy projects. As West Africa drags its feet despite its immense potential, countries like Morocco, Egypt, and South Africa are making tremendous steps towards a green hydrogen future. The billions of investments that have so far been committed to projects particularly in Egypt, Namibia and Mauritania show the viability of hydrogen as a source of green energy. More such investments are expected to flow into these countries and others that make sound renewable energy policies as economies, particularly those in Europe seek alternative sources of green energy. Slowly Green hydrogen is emerging as a major energy industry in Africa and its full exploitation could provide Africans with new access to cleaner energy sources, employment opportunities, public health benefits due to cleaner air, GDP creation and export revenues outside Africa CBA
DIGITAL TECH
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