Green hydrogen holds immense potential

Africa is gearing up for the transformation of its energy sector as it embraces the potential of green hydrogen production to power its future. The vast continent, with its abundant renewable resources and growing energy demands, is now eyeing green hydrogen as a key driver of sustainable development, economic growth, and energy security.According to Frost & Sullivan energy consultant Patrick Prestele, the immense potential of green hydrogen cannot be overestimated. “It holds significant opportunity for the continent to become a major player in the global green hydrogen economy.”It is estimated Africa has the potential to generate over 1 000 gigawatts of renewable energy, which could in turn produce vast amounts of cost-competitive green hydrogen for various offtake markets and industries. “Countries like Morocco, South Africa, Egypt and Namibia have already launched initiatives and pilot plant projects to develop large-scale hydrogen production facilities due to the favourable renewable energy generation potential,” said Prestele. “Early estimates indicate the continent could produce as much as 5 000 megatons of hydrogen per year at less than $2 per kilogram. The strategic geographical location of the continent further ideally positions it as a hub for hydrogen exports to global markets.”South Africa has developed a hydrogen roadmap that envisions substantial investment in green hydrogen projects, while Morocco has already made progress in harnessing its vast solar resources, setting up pilot projects and laying the groundwork for future green hydrogen exports to Europe. Egypt, with its burgeoning renewable energy sector, is exploring the use of green hydrogen in various industries, including transportation and electricity generation, and is actively working towards becoming a key player in the green hydrogen market. Another country with growing interest in the potential of hydrogen is Nigeria, one of the major oil and gas producers on the continent. It is looking at ways to diversify its energy sector and harness its extensive renewable energy potential, including vast solar resources in the northern region, to produce green hydrogen and reduce carbon emissions.The benefits of developing the hydrogen sector on the continent are well documented. Green hydrogen production can stimulate economic growth through job creation and the establishment of new industries in regions with abundant renewable energy resources. It can also deliver energy security, reducing the reliance on fossil fuels while reducing emissions. There’s particular excitement in the export opportunities it offers. African nations can capitalise on their green hydrogen by exporting it to regions with high demand, such as Europe and Asia.Prestele, however, warns that Africa must be careful to not just become a battery to the developed world but rather find ways to benefit from the local value addition and industrialisation potential of green hydrogen.“Countries must strike a balance between hydrogen exports and developing local industries such as green fertiliser and ammonia,” he said. While the potential of green hydrogen in Africa is immense, several challenges will have to be addressed, including infrastructure development. Collaboration between governments, international organisations, and the private sector will be essential to unlock Africa's green hydrogen potential fully.Prestele says by leveraging its abundant renewable resources and fostering innovation, the continent can become a key player in the global green hydrogen market, offering a clean and sustainable energy solution that benefits both the continent and the world.