THE INCREDIBLE POTENTIAL OF GREEN AFRICAN HYDROGEN

(Article published in L’Automobile magazine, August 2023)

By Anne Bourgoin

Combining massive energy demand with carbon neutrality is Africa’s greatest ongoing challenge. To help transform the continent’s energy sector, the European Investment Bank, the International Solar Alliance and the African Union have conducted a promising study on the potential of green hydrogen in Africa.

And for the first time, Africa is rubbing shoulders with the world’s major players! Indeed, billions of dollars will be invested over the next few years in the development of green hydrogen. It’s no coincidence, then, that an analysis has been commissioned to underpin the subject and guide future decisions. The report, entitled Africa’s Extraordinary Potential in Green Hydrogen, reveals that this energy resource is economically viable if its production cost remains below two euros per kilo, and that it can stimulate economic growth across the continent while reducing CO₂ emissions by 40%.

Renewable Energy Sources and Green Hydrogen

African countries’ interest in this fuel is a no-brainer considering their production potential and socio-economic needs. They all have access to renewable energy sources: solar, wind, geothermal, etc. Many also have the raw materials essential for electrolysis, which separates water into hydrogen and oxygen.

One of the advantages of green hydrogen is that its production doesn’t generate carbon dioxide or other greenhouse gases (GHGs). The other key point is the possibility of transporting and storing any hydrogen surplus, which can be used as a back-up energy source to supplement renewable energies that cannot be produced at all times of the day and night, thus providing a regular and sufficient supply of electricity at all times.

“Solar photovoltaic technology provides us with the cheapest electricity. It will cost less than EUR 2 per kilogram in several African countries by 2030, well below the current assumption of EUR 5, in stark contrast to the USD 60 to USD 70 paid for a barrel of oil,” emphasized Ajay Mathur, Managing Director of the International Solar Alliance. “Thanks to this low-cost electricity and lower electrolyzer costs, the next step consists in providing a clean fuel, cheaper than all current fossil ones. This will enable us to decarbonize the power sector and most of the areas where it is difficult to reduce emissions, such as fertilizers, steel manufacturing and refineries.”

Three Key Factors

According to the analysis carried out by international consultancy CVA, three factors are essential to achieving the production of 50 million tonnes of green hydrogen by 2035 in Africa:

• Programs must be put in place to mobilize investment;
• Pilot projects are needed to demonstrate successful production, storage, distribution and use;
• Partnerships must be created to generate demand on a national and international scale, to strengthen the cooperation that will enable infrastructure to be built and operated.

Transforming Africa

Investing in green hydrogen could reduce carbon dioxide emissions in Africa by 40%, avoiding the release of 500 million tons of CO2 per year, according to the study. The continent could supply 25 million tons of green hydrogen to global energy markets, equivalent to 15% of the gas currently used in the European Union. It could thus become a global centre for green hydrogen, while reaping its benefits locally. Green hydrogen could profoundly transform Africa.