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New study confirms Africa’s extraordinary green H2 potential
European Investment Bank, International Solar Alliance and the African Union unveil study into Africa’s green H2 potential, with the support of the Government of Mauritania, HyDeal and UCLG Africa. Analysis highlights benefits of harnessing solar power to create green H2 in four African hubs: Mauritania, Morocco, southern Africa and Egypt.
Green H2 is economically viable at €2/kg and can accelerate low-carbon economic growth across continent and reduce emissions by 40%. Africa can secure access to clean and sustainable energy on the continent and become a global energy player through green H2 exports.
Harnessing Africa’s solar energy to produce 50 MMtpy of green H2 by 2035 can help secure global energy supply, create jobs, decarbonize heavy industry, enhance global competitiveness and transform access to clean water and sustainable energy. The analysis has been commissioned by the European Investment Bank, the International Solar Alliance and the African Union, with the support of the Government of Mauritania, HyDeal and UCLG Africa,
The “Africa’s Extraordinary Green H2 Potential” report represents the first detailed research of the feasible development of green H2 across the continent. The new stufy combines analysis of investment opportunities focusing on three hubs: Mauritania - Morocco, southern Africa and Egypt with a roadmap of technical, economic, environmental and financial solutions to unlock commercial development.
“Africa’s has the best solar energy in the world and transforming solar power into green H2 can strengthen energy security, cut emissions and pollution and decarbonize industry and transport. The European Investment Bank is working with partners across Africa and around the world to harness its renewable energy potential to produce low-cost green H2 at scale. The Africa’s Extraordinary Green H2 Potential report shows concrete opportunities to transform access to green energy and clean water across the continent and beyond.” said Abdessalam Ould Mohamed Salah, Minister of Energy of the Republic of Mauritania,
“Africa has the best renewable energy in the world and scaling up production of green H2 can transform access to low-cost electricity and clean water. Unlocking Africa’s green H2 potential will require close cooperation between public, private and financial partners. The new “Africa’s Extraordinary Green H2 Potential” study outlines what can be achieved and what needs to be done. The European Investment Bank is pleased to work with African and international partners to enable large scale green H2 to become a reality,” said Ambroise Fayolle, Vice President of the European Investment Bank.
“Solar photovoltaic technology has provided us with the cheapest electricity. It will cost below €2 per kg in several African countries by 2030, much lower than the current mass assumption of €5 and a stark contrast to the $60-70 paid for an oil barrel. Thanks to this low-cost electricity and decreasing electrolyzer costs, the next step is providing access to a clean fuel, cheaper than all the current fossil fuels. It will enable us to decarbonize the power sector and most hard-to-abate sectors - fertilisers, steel manufacturing, and refineries,” said Dr Ajay Mathur, Director General, International Solar Alliance.
“As the global energy and climate crises unfold, mass-scale competitive green H2 is ready to provide energy security, affordability and decarbonization. Integrated H2 hubs bringing together upstream, midstream and upstream players on the basis of long-term off-take contracts are building powerful business models. Pioneering African countries such as Mauritania are showing the way, proving that Africa can help the world with green H2, ensuring for itself a future of industrial development, fast and clean growth for all,” said Thierry Lepercq, President of HyDeal.
The study was previewed at the Mauritania Pavilion at COP 27 in Sharm el Sheikh by Abdessalam Ould Mohamed Salah, Minister of Energy of the Republic of Mauritania, Ambroise Fayolle, Vice President of the European Investment Bank, Dr Ajay Mathur, Director General, International Solar Alliance, Jean-Pierre Elong Mbassi, Secretary General of UCLG Africa and Hakima el Haité former Minister of Environment of Morocco and Thierry Lepercq, President of HyDeal. Government leaders, ministers, international finance, business partners and civil society from across Africa attended the unveiling event.
The report was formally handed over to partners on December 20th.
Scaling up green H2 production to transform access to low-cost energy
The comprehensive analysis carried out in recent weeks by international consultancy CVA suggests that large scale green H2 investment can accelerate decarbonization by enabling large scale African energy users, such as fertilizer and steel producers, to use green H2. The research is enhanced by CVA’s unique strategic partnership with energy partners across Africa, Europe and around the world.
The study highlights that solar powers green H2 is economically viable and can be produced at less than €2 per kilogram, cheaper than traditional fossil fuel energy, and cater both for local energy demand and allow green H2 to be exported to global markets. This is equivalent to energy costs of USD 60 a barrel.
Roadmap for green H2 commercialization across Africa
The research suggests three requirements to enable 50 MMt of green H2 to be produced in Africa by 2035:
- National planning, regulation and incentive schemes need to mobilize private sector investment.
- Pilot projects need to show successful green H2 generation, storage, distribution and use at both demonstration and commercial scale.
- Market-based partnerships are needed to enable mass-scale domestic and international off-take and demand for green H2, and increase cooperation to design, finance, build and operate green H2 production, storage and distribution infrastructure.
- 1-T green H2 investment can deliver the equivalent of more than one third of Africa’s current energy consumption, boost GDP, improve clean water supply and empower communities.
The new study outlines how production and transmission of green H2 can lead to a €1-T investment yielding 7 exajoules of energy (versus a consumption in Africa of 19.9 exajoules in 2021) and a correlative massive increase in GDP, creating hundreds of thousands of permanent and skilled jobs across Africa.
Large scale green H2 investment will transform supply of clean water in areas regularly impacted by drought and chronic water shortages and will help empower communities.
Decarbonizing Africa’s heavy industry
The new analysis estimates that green H2 investment could reduce carbon emissions in Africa by 40%, replacing 500 MMtpy of CO2.
Enabling Africa to be a global green H2 powerhouse
According to the study large scale green H2 generation will enable Africa to supply 25 MMt of green H2 to global energy markets, equivalent to 15% of current gas used in the European Union. The new analysis will be followed by in-depth research of local green H2 investment potential, regulatory requirements and changing demand in the coming months.
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