EIB study highlights Africa’s green hydrogen potential

A new study has said that harnessing Africa’s solar energy to produce 50 million tonnes of green hydrogen per year by 2035 can help secure global energy supply, create jobs, decarbonise heavy industry, and transform access to clean water and sustainable energy.

Commissioned by the European Investment Bank (EIB), the International Solar Alliance, and the Africa Union, supported by the Government of Mauritania, HyDeal, and UCLG Africa, the report concluded that green hydrogen is economically viable at €2/kg ($2.13/kg) and can accelerate low-carbon economic growth across the continent and reduce emissions by 40%.

The Africa’s Extraordinary Green Hydrogen Potential  report, carried out by CVA outlined how the production and transmission of green hydrogen can lead to a €1 trillion ($1.06 trillion) investment, yielding more than one third of Africa’s Current energy consumption, boost gross domestic product (GDP), improve clean water supply, and empower communities.

It has estimated that green hydrogen investments could reduce carbon emissions on the continent by 40%, replacing approximately 500 million tonnes of carbon dioxide a year.

The analysis highlighted that green hydrogen produced on the continent is economically viable, cheaper than traditional fossil fuel energy, and can cater for both local energy demand and allow green hydrogen to be exported to global markets.

Commenting on the report, Ambroise Fayolle, Vice-President of the European Investment Bank, said, “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.”

Dr. Ajay Mathur, Director General of the International Solar Alliance, added, “Solar photovoltaic technology has provided us with the cheapest electricity. It [green hydrogen] 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.”

The research has suggested three requirements to enable the production of the 50 million tonnes of green hydrogen in Africa by 2035:

National planning, regulation, and incentive schemes need to mobilise private sector investment.

Pilot projects need to show successful green hydrogen 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 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,” said Thierry Lepercq, President of HyDeal. “Integrated hydrogen hubs bringing together upstream, midstream and upstream players on the basis of long-term off-take contracts are building powerful business models.”