Africa contributed for 11% of the 163 GW of green hydrogen projects announced globally in the last year, accounting for more than half of the total production capacity of 243 GW disclosed since 2015.
Due to its geographical advantages in creating renewable energy, which is a significant cost driver for green hydrogen and a supporter of economic growth, Africa has a lot of promise for green hydrogen production.
All hydrogen initiatives announced in Africa have had a European investment partner, which was not unexpected given the projects’ lack of money.
Africa has a lot of promise for green hydrogen production since it has some of the greatest solar and wind energy resources in the world. However, because of the high initial costs of hydrogen production, Africa will most likely need to invest in renewable energy projects.
In Africa, there is a Green Hydrogen Path
33 African countries have joined the 2015 Paris Climate Agreement, which aims to keep global warming to less than 2 degrees Celsius this century.
The signatories agreed to adopt a set of clean energy and energy efficiency objectives (NDCs) to decrease emissions as part of the accord.
According to ESI Africa, the power production sector is the most frequent source to CO2 emissions in most countries, with the bulk of NDCs in Africa focusing on emissions reduction.
Green and blue hydrogen, in particular, are set for greater growth in Africa. Hydrogen from water electrolysis is the ideal answer to this emissions problem.
The establishment of a green hydrogen economy in Africa has gotten a lot of interest since the Paris climate accord was expected, because to the continent’s high renewable energy potential and investment from wealthier nations seeking for methods to decarbonize their businesses.
Green hydrogen is the most effective way to reduce carbon dioxide emissions in hard-to-reduce industries including building, steel manufacture, centralized energy systems, and transportation.
As methane becomes economically feasible and pipeline infrastructure is improved to handle hydrogen mixes, natural gas will serve as the foundation for hydrogen integration.
The significance of Africa’s geographical position
In 2020, the European Union unveiled its hydrogen policy, proposing a conversion to green hydrogen by 2050, dependent on reliable African supply.
Due to the quantity of land, easy access to water supplies, and port infrastructure, Africa is predicted to become the preferred site for a green hydrogen economy, allowing Africa to position itself as a major hydrogen export center.
According to the EAI Africa website, the Development Finance Corporation (DFI) is expected to become the principal backer of green hydrogen projects in Africa due to its objective for green investments.
ECAs are also projected to become key financial contributors to green hydrogen projects and alternative financing structures like green bonds and green infrastructure funds.
Africa’s Top Green Hydrogen Projects
Because of the many large-scale hydrogen projects planned in 2022, green hydrogen has great aspirations for revolutionizing energy patterns and the economy in North and South Africa, according to the South African Energy Capital Power platform.
Egypt’s green hydrogen plant
Egypt is pioneering the expedited building of the world’s largest green hydrogen project, thanks to plentiful solar and wind energy and its closeness to European markets.
The project is planned to be finished before the COP 27 climate meeting in Sharm El-Sheikh, Arab Republic of Egypt, in November of this year.
Green hydrogen will be used as a feedstock in the present ammonia factory in the Ain Sukhna region of the Gulf of Suez, which will generate green ammonia.
Scatec of Norway, Fertiglobe of the United Arab Emirates, Orascom of Egypt, and Egypt’s sovereign fund are among the project developers.
The plant will include a massive electrolyzer from the US business “Plug Power” with a capacity of 100 megawatts, allowing for the yearly production of 90,000 tons of green ammonia.
South Africa’s Hydrogen Valley Project
South Africa has world-class solar and wind energy resources, as well as availability to the platinum group metals utilized in the electrolyzer, making it a great candidate for cost-effective hydrogen production and worldwide export.
In October 2021, in collaboration with South African firms Anglo American Platinum, Energy SA, and Bambi Energy, the South African government took the initiative to unlock and invest in this potential by undertaking a feasibility study for the establishment of the Hydrogen Valley.
The research found three axes and nine possible hydrogen projects in the transportation, manufacturing, and construction sectors, all of which have the potential to spread hydrogen-fueled solutions and stimulate new economic activity.
The projected “Hydrogen Valley” project in South Africa will run from the country’s coal and platinum-group mineral mining center at Mokopane in Limpopo Province, via the industrial and commercial corridor to Johannesburg, and finally to Durban.
Mauritania’s Noor project
The Mauritanian government awarded the British business Chariot exclusive development rights, and the country signed a memorandum of understanding to create the Noor project, a 10-megawatt green hydrogen power plant covering 14,400 square kilometers of land and sea.
With offshore wind speeds of more than 10 meters per second and some of the greatest levels of sun brightness in the world, Mauritania, which is rich in solar and wind energy, is positioned to be one of the cheapest providers of green hydrogen on the African continent.
Last May, Australia’s CW Global signed a Memorandum of Understanding in the country’s northern desert to develop a 30-GW Green Solar Aman hydrogen, wind, and solar facility, signaling substantial foreign investor interest in the country’s hydrogen potential.
Namibia’s SCDI Hydrogen Project
Namibia is working on its first hydrogen megaproject, which will create about 300,000 tons of green hydrogen per year.
The location, which is near Tsor Khaib National Park, is one of the most resource-rich in terms of onshore wind and solar resources in the world.
The project’s chosen contractor is Haven Hydrogen Energy, and it will be constructed in phases, with the first producing 2 gigawatts of renewable power by 2026 for green hydrogen generation at a cost of $4.4 billion.
In the next years, more growth is projected, bringing the total renewable generation capacity to 5 GW and creating 3 GW of electrolyzer capacity for a total cost of $9.4 billion.
According to the EEE Africa website, Namibia has taken a political decision to make the nation a center for green hydrogen production and delivery to Europe and the rest of the globe, and the Namibian Ports Authority (Namport) signed a memorandum of understanding with the Port of Rotterdam.
While the Netherlands is well on its way to deploying green hydrogen energy, the Port of Rotterdam anticipates 20 million tons of hydrogen to travel through its industrial complex each year by 2050.
The Moroccan project “Hifu Ammonia”
Morocco’s Ministry of Energy, Mines, and Environment inaugurated the “Hifu Ammonia Morocco” project in Rabat last July, making it the country’s largest green hydrogen and ammonia initiative disclosed to date.
The investment project is valued at about 850 million dollars. The project’s development will be completed in phases, with the first phase beginning in 2022.
The facility will create 183,000 tons of green ammonia and dispose of 280,000 tons of carbon dioxide yearly once it is fully operational.
Consolidated Contractors Group and Fusion Fuel Green are the project’s developers, while Vitol has signed a Memorandum of Understanding to oversee the site’s green ammonia procurement.
Morocco is investigating local hydrogen generation in an effort to minimize gray ammonia imports for phosphate production while also allowing the regional sales to Europe and other nearby markets.
Africa needs more hydrogen projects
Tunisia and Germany signed an agreement in 2020 to promote the Tunisian-German Green Hydrogen Alliance, according to ESI Africa’s study on DLA Piper’s research on the future of Tunisia’s energy sector.
Tunisia receives a 31 million euro grant from Germany to create a hydrogen production pilot unit, conduct studies, build capacity, and establish an institutional and regulatory framework, among other things, as part of this deal.
Italian investors, on the other hand, who have a long history in Tunisia’s oil business, have shown interest in creating green hydrogen.
Expectations
In terms of green hydrogen demand, the mining and transportation industries, which include heavy transportation, aviation, and marine fuels, are among the most promising.
Bridget Fan, a hydrogen research and emerging technologies specialist at Wood Mackenzie, a worldwide research organization, agreed. Dorsten: Green hydrogen will witness considerable cost reductions over the next ten years.
She stated that Africa will be completely equipped for hydrogen production and affordable renewable energy and that because hydrogen is a competitive market, it will create greater opportunities for integration with diverse industries and purposes.
