Green Hydrogen Revolution in Africa: A Path Towards Sustainable Energy Production
Key Ideas
  • The shift to green hydrogen production is essential to meet net-zero goals and decarbonize hard-to-abate sectors like steel production.
  • Africa has the potential to become a major player in green hydrogen production, with over 70 potential supply regions identified and several countries developing strategies focused on export.
  • Geospatial modeling is being used to optimize green hydrogen production locations in Africa, taking into account factors like financing scenarios, interest rates, and specific country risks.
  • Planned green hydrogen projects in Africa show promising growth, with various projects at different stages of development and capacities ranging from 3.5 MW to 7 GW.
In 2022, the majority of hydrogen production was still reliant on fossil fuels, known as 'grey' hydrogen. However, the need to achieve net-zero emissions and decarbonize various industrial sectors has led to a push towards 'green' hydrogen, produced using renewable energy sources. This transition is crucial to meet increasing global demand for hydrogen, particularly in hard-to-abate sectors like steel production. Although green hydrogen currently makes up a small percentage of global production, efforts are being made to reduce costs and increase competitiveness. The European Union is actively supporting the creation of green hydrogen export markets, with a focus on importing green hydrogen to support decarbonization efforts. Africa, with its abundant renewable energy resources, is emerging as a key player in green hydrogen production. Several African countries are developing strategies for green hydrogen export, with numerous projects planned across the continent. Geospatial modeling techniques are being utilized to optimize production locations and calculate costs, taking into account country-specific risks and financing scenarios. These efforts aim to ensure that green hydrogen projects in Africa are economically viable and contribute to sustainable development. The planned green hydrogen projects in Africa show promising growth, with various projects at different stages of development and capacities ranging from small-scale to giga-scale. This signifies a step towards a more sustainable and environmentally friendly energy landscape in Africa.
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