The vision of North Africa emerging as a prominent green hydrogen exporter by 2050 to meet Europe’s surging demand is no longer a distant dream. A recent report from accounting consultancy Deloitte has projected an industry that is poised to reshape the global energy map while contributing to a colossal $1.4 trillion-a-year market by 2050.
The concept of green hydrogen, produced by splitting hydrogen molecules from water using renewable electricity, has garnered immense attention for its potential to revolutionize the energy sector. The report by Deloitte heralds this transformation, asserting that green hydrogen is set to wield its influence on a global scale by 2030.
Presently, a mere fraction of the world’s hydrogen production qualifies as green, amounting to less than one percent. However, the convergence of climate imperatives and strategic investments has triggered an unprecedented surge in the green hydrogen sector.
The Hydrogen Council, a prominent lobbying group, sheds light on the staggering magnitude of the green hydrogen phenomenon. It lists over a thousand hydrogen projects in various stages of development worldwide. The potential trajectory of this sector is substantial, as projects slated for initiation before 2030 are estimated to necessitate a staggering investment of $320 billion.
Deloitte’s report paints a vivid picture of the envisioned green hydrogen export landscape by 2050. The likely frontrunners include North Africa ($110 billion per year), North America ($63 billion), Australia ($39 billion), and the Middle East ($20 billion). While these predictions provide insight, it’s important to recognize that they are influenced by various factors, including investment interests.
Despite the involvement of management consultancies, like Deloitte, and their potential financial allegiances, the imperative to meet climate goals and generous incentives for clean energy are driving the surge in demand for green hydrogen. This extends to sectors like long-haul aviation and shipping, where alternatives to conventional fossil fuels are urgently sought.
Northern Africa’s potential in the green hydrogen arena is notably highlighted. The region’s abundance of solar and wind resources positions it as a major contender. Countries like Morocco and Egypt are gradually embracing the hydrogen revolution, aligning with the European Union and the United States in this transformative journey. Morocco’s untapped wind and solar energy potential, coupled with Egypt’s existing natural gas pipeline, set the stage for their pivotal roles.
Saudi Arabia’s sun-soaked expanses have not gone unnoticed in this unfolding narrative. With the capacity to produce a staggering 39 million tonnes of low-cost green hydrogen by 2050, Saudi Arabia could diversify its economy away from petroleum dependency. Such a shift would align with the nation’s pursuit of economic resilience and sustainability.
The Deloitte report forecasts the eventual culmination of investments by 2040 for carbon capture and storage solutions, often termed “blue” hydrogen, predominantly by oil-rich Gulf States, the United States, Norway, and Canada. This indicates a clear path of evolution within the sector, aligning with the global imperative to reduce carbon emissions.
The trajectory outlined by Deloitte’s report cements North Africa’s role as a potential powerhouse in the green hydrogen revolution. This transformative shift promises to transcend energy landscapes, reshape economies, and offer a clean energy alternative that holds the potential to steer the world towards a more sustainable future.
