Rabah Arezki, the director of research at the French National Center for Scientific Research (CNRS), warns that the focus on hydrogen could potentially divert attention from pressing domestic social issues, particularly those linked to the migration crisis.
Hydrogen has emerged as a frontrunner in the race for clean energy solutions. North African countries, blessed with abundant sunlight and vast deserts, are well-suited for green hydrogen production through renewable energy sources like solar power. This has sparked interest in harnessing hydrogen as an export commodity, particularly to energy-hungry Europe.
However, Arezki raises concerns about the distribution of benefits from hydrogen production. He suggests that if hydrogen becomes economically viable, exports to Europe may primarily benefit elites within North African nations. This could lead to challenges such as exchange rate fluctuations, potentially destabilizing local economies.
Additionally, there is a risk of reinforcing a social contract reminiscent of oil-exporting nations in the region. In such arrangements, citizens may receive subsidies while elites profit from hydrogen production, exacerbating social disparities.
Economic Challenges During the Energy Transition
North Africa’s embrace of hydrogen comes with its set of economic challenges, particularly during the energy transition. Arezki highlights the higher capital costs associated with transitioning to a hydrogen-based energy economy. These costs may strain the economies of Southern Mediterranean countries, making it imperative to strike a balance between energy ambitions and social welfare.
On a related note, the European Commission is actively supporting renewable hydrogen production within the European Economic Area (EEA). Through its pilot auction funded by the Innovation Fund under the EU Hydrogen Bank, the commission aims to allocate up to €800 million to renewable hydrogen producers. This support will be provided as a fixed premium per kilogram of renewable hydrogen produced over a decade.
This initiative not only aligns with Europe’s commitment to clean energy but also provides opportunities for collaboration with neighboring North African countries, potentially addressing some of the concerns raised by Arezki.
Green Hydrogen Projects in Newfoundland and Labrador
Meanwhile, in Canada’s Newfoundland and Labrador province, several companies are gaining traction with their green hydrogen projects. EverWind NL, Exploits Valley Renewable Energy, Toqlukuti’k Wind, and Hydrogen, and World Energy GH2 have received authorization to proceed with their wind-to-hydrogen initiatives. The region’s abundant onshore wind resources position it as a promising hub for green hydrogen production.
DNV Approval for Liquid Hydrogen Storage
In the pursuit of hydrogen innovation, DNV has granted Approval in Principle (AiP) to CB&I for its liquid hydrogen (LH2) cargo containment system design. This development is significant as it confirms the safety standards compliance of LH2 storage. The scalable design, capable of accommodating up to 40,000 m3 per tank, holds the potential to revolutionize hydrogen storage technology.
Acciona Energía’s Green Hydrogen Vision in Aruba
Lastly, Acciona Energía is setting the stage for a green hydrogen revolution in the Caribbean nation of Aruba. Through a comprehensive agreement, the company plans to develop a green hydrogen valley powered by renewable electricity. The excess hydrogen production will be utilized on the island, presenting a promising model for sustainable energy utilization in remote regions.
The pursuit of hydrogen as a clean energy solution holds immense promise, but it also carries responsibilities. North Africa’s ambitions in the hydrogen sector must be carefully balanced with domestic social priorities to ensure that the benefits are shared equitably. The European Commission’s support, green hydrogen projects in Canada, and innovative storage solutions globally signal that the world is committed to making hydrogen a key player in the clean energy transition.
