Africa has the potential to become a renewable energy exporter. From Egypt to South Africa, German corporations are developing projects.
The location in Namibia where one of the world’s largest hydrogen projects will be developed was formerly a no-go zone for diamond mining in the desert. It is rather arid there, and it seldom rains. If anything grows here, not far from Lüderitz’s port city, it’s scant shrubs that can only live because of the fog that builds over the chilly Atlantic at night and creeps inward. However, in the post-fossil era, there are two resources in southwest Africa that are becoming increasingly important: a lot of sun and a lot of wind.
It was a huge win for “Made in Germany” green H2 technology. The government in Windhoek gave the contract to the “Hyphen” consortium, which includes industry pioneer Enertrag from Dauerthal in Brandenburg and infrastructure developer Nicholas Holdings, at the end of last year to create the massive energy park that would produce green hydrogen from 2026.
Wind turbines and solar fields will be installed there, with a total capacity of five gigawatts of green electricity, equivalent to the capacity of five nuclear power reactors when fully operational. In addition, a hydrogen-producing electrolysis plant and a saltwater desalination plant are needed to deliver the requisite amounts of H2O in the arid zone. Then, using the hydrogen produced there, a plant to manufacture more transportable derivatives such as e-fuels or ammonia. In addition, a new loading terminal at Lüderitz will be built to ship gaseous or liquid items. The goal is to produce 300,000 tons of green hydrogen per year for the regional and worldwide markets.
The project involves a total investment of $9.4 billion USD. These are dimensions that have only been known previously via Chinese economic dealings with Africa. “The German economy’s prior investment portfolio in Africa totaled twelve to thirteen billion dollars,” says Stefan Liebing, Chairman of the German-African Business Association.
If the Namibia initiative creates a precedent, it might provide the groundwork for new forms of collaboration between Europe and Africa. More H2 projects are being planned by German corporations with nations including Egypt, Morocco, Mauritania, and South Africa. It is a business opportunity, particularly for many nations that have previously lagged behind in the global economy.
“This has the potential to make Africa wealthy,” says Liebing, an entrepreneur who is set to finish a hydrogen project in Angola with his business. That may become a “green Opec,” but only if North and South work together to build it, rather than relying on the oil model.
Since hydrogen was identified as a vital ingredient for the energy revolution in the industry, as well as for applications in transportation and aviation, a worldwide race for the best starting positions has erupted. Now that Russia’s ruler Putin has invaded Ukraine, switching to “green” gas is even more vital. Alternatives to fossil fuels are required as soon as feasible.
Africa’s cheaper hydrogen is a renewable energy source
Germany has also been attempting for some time to tap into low-cost H2 sources outside of the country. Because one thing is certain: the amount of hydrogen necessary will be so big that it will be difficult to manufacture using only household green power. The new federal government’s growth plans for wind and solar systems are already ambitious, but they would have to be greatly boosted to fully fulfill the H2 demand in addition to typical energy usage. Many experts believe that this is unlikely due to a shortage of room. Offshore wind power has the potential to be viable in the long run, at best. Electricity, on the other hand, is still rather costly in this area.
Green power may be produced extremely cheaply in numerous locations throughout the world where the sun shines frequently and/or there is a lot of wind. Northwest Africa, with Morocco as a pioneer, the Arabian Peninsula, Australia, Chile – and West Africa are all mentioned by experts. Last year, the Federal Ministry of Research evaluated the potential. As a result, up to 165,000 terawatt-hours of green hydrogen might be generated yearly in West Africa alone. According to the government, this equates to 110 times the amount Germany would most likely need to import in 2050.
Another point to consider is the price. Hydrogen can be generated for EUR 2.50 per kilogram there, however, calculations suggest that in 2050, hydrogen produced in Germany would still cost roughly EUR 3.80.
Naturally, these hydrogen dreams for the neighboring continent are eerily similar to the hoopla surrounding the “Desertec” desert power project. This should be utilized in North Africa to create energy and transferred to Europe through long-distance lines. Desertec was effectively buried in 2014, thanks mostly to German firms and banks. Expert on Africa Liebing feels that the blunders made in the past may be avoided this time. He claims that transferring hydrogen derivatives through tankers is less difficult than carrying energy via long-distance pipelines across the Sahara and the Mediterranean. “In addition, at the time, energy exports were overemphasized. This time, it must also include meeting the requirements of the local population and economy. For all parties, it’s a win-win situation.”
Lüderitz should also profit from renewable energy
This is taken into consideration in Namibia’s hyphen project, which is likely one of the reasons for the consortium’s contract award. The region’s electricity grid, as well as Lüderitz’s public water supply, to be enhanced. The proposed saltwater desalination plant would be sized such that it can not only produce H2 but also fulfill the whole yearly need of about 1.1 million cubic meters for families and businesses in the 12,500-person town, according to the blueprints. The Germans also claimed that 15,000 construction jobs would be produced, followed by 3,000 permanent jobs.
The fact that the H2 project will be located in a Namibian national park (dubbed “Tsau-Khaeb,” or “restricted region”) is not considered a concern by the consortium. In the previously restricted region for diamond mining, an area of 400,000 hectares is being investigated, which is almost one-and-a-half times the size of Saarland. According to Enertrag spokesperson Matthias Philippi, there are “clearly defined zones that allow or prohibit the usage of renewable energies.” Independent environmental studies are produced by the firm in accordance with World Bank guidelines. He assures that ecologically vulnerable areas will be off-limits.
