Africa's Green Hydrogen Potential: A Trillion Euro Opportunity
Key Ideas
  • Africa could produce €1 trillion worth of green hydrogen annually by 2035, fostering local industry and enabling fuel export.
  • The fuel, produced through water-splitting with renewable energy, could cost less than two euros per kilogram by 2030.
  • Key production hubs identified include Egypt, Morocco, Mauritania, Namibia, and South Africa, with potential for other nations to join.
  • Apart from export, the green hydrogen could be instrumental in local production of items like green steel and fertilizer.
A study supported by the European Investment Bank suggests that Africa has the capacity to generate €1 trillion ($1.06 trillion) worth of green hydrogen annually by 2035. This production potential can facilitate the export of hydrogen and promote local industries on the continent. By leveraging Africa's abundant solar energy resources, countries like Egypt, Morocco, Mauritania, Namibia, and South Africa are expected to become key hubs for green hydrogen production. The fuel, created by splitting water using renewable energy sources, is forecasted to cost less than two euros per kilogram by 2030. The rising demand for clean-burning alternatives to fossil fuels, along with Europe's initiative to reduce reliance on Russian natural gas, are driving the increasing interest in green hydrogen. Researchers project that Egypt could emerge as the largest producer, followed by the Southern African hub, while Morocco and Mauritania could jointly account for a significant production share. Additionally, countries like Algeria, Nigeria, and Mozambique also hold promise for commencing green hydrogen production. Not only could this fuel help meet Europe's gas requirements, but it could also be utilized locally for the production of green steel and fertilizer.
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