The study shows that green hydrogen is economically viable at €2 / kg and can expedite low-carbon economic growth across the continent and reduce emissions by 40%, replacing approximately 500 million tonnes of carbon dioxide a year.
The analysis emphasised that green hydrogen produced in Africa is:
- economically viable
- more cost-effective than traditional fossil fuel energy sources, and can accommodate domestic energy demand while enabling the export of green hydrogen to global markets.
The Africa’s Extraordinary Green Hydrogen Potential report outlined how the production and transmission of green hydrogen can lead to a €1 trillion (USD$1.06-trillion) investment, yielding more than one-third of Africa’s current energy consumption, as well as:
- boosting gross domestic product
- improving clean water supply, and
- empowering communities.
The analysis suggests that large-scale green hydrogen investment can accelerate decarbonisation by enabling large-scale African energy consumers, such as fertiliser and steel producers, to utilise green hydrogen.
Ambroise Fayolle, vice president of the European Investment Bank, says, “Africa has the best renewable energy in the world and scaling up production of green hydrogen can transform access to low-cost electricity and clean water. Unlocking Africa’s green hydrogen potential will require close cooperation between public, private and financial partners.”
The new study depicts the first detailed research of the feasible development of green hydrogen across Africa and incorporates an analysis of investment opportunities prioritising four hubs:
- Mauritania
- Morocco
- Southern Africa, and
- Egypt.
The study also includes a roadmap of technical, economic, environmental and financial solutions to unlock industrial expansion.
The study suggests the following roadmap for green hydrogen commercialisation across Africa by 2035:
- Activate national planning, regulation, and incentive schemes to mobilise private sector investment and innovation to establish and integrate domestic value chains with global markets.
- Pilot projects are required to demonstrate successful green hydrogen generation, storage, distribution and application at both demonstration and commercial scales.
- Market-based partnerships are required to enable mass-scale domestic and global off-take and demand for green hydrogen and increase cooperation to design, finance, build and operate green hydrogen production, storage, and distribution infrastructure.
“As the global energy and climate crises unfold, mass-scale competitive green hydrogen is ready to provide energy security, affordability and decarbonisation,” says Thierry Lepercq, president of HyDeal.
Lepercq concludes, “Integrated hydrogen hubs bringing together upstream, midstream and upstream players on the basis of long-term off-take contracts are building powerful business models.”
