Africa's Growing Role in the Global Green Hydrogen Market
Key Ideas
  • Africa is showcasing its potential as a future global hub for green hydrogen production, with major projects in Morocco, Mauritania, Djibouti, Namibia, and South Africa.
  • The continent could capture a significant share of the global green hydrogen market, attracting investment and creating millions of job-years by 2050.
  • Despite challenges like transport limitations and limited demand, Africa's abundance of renewable resources positions it well to grow its green hydrogen exports and boost export revenues.
  • Global efforts are being made to incentivize both supply and demand of green hydrogen, with interventions from governments and market measures in countries like the US, Japan, and South Korea.
Several regional projects in Africa are highlighting the continent's potential as a key player in the global green hydrogen market. Major projects in countries like Morocco, Mauritania, Djibouti, Namibia, and South Africa are set to capture a significant share of the market. The 'green halo' effect is attracting global capital to invest in green hydrogen initiatives, although competition for these funds is fierce. While there's optimism about green hydrogen's role in the energy transition, the current market is primarily dominated by 'grey' hydrogen produced from fossil fuels. The shift to green hydrogen, produced from renewable sources, presents a broader solution for achieving net zero emissions, although feasible use cases for it are currently limited. Despite the potential, challenges such as transport limitations and limited demand hinder the sector's growth. However, Africa's vast renewable resources position it favorably for increasing its green hydrogen exports and reaping significant economic rewards. Efforts are being made globally to incentivize both the supply and demand sides of the green hydrogen equation, with interventions like the US's Inflation Reduction Act and market measures in Japan and South Korea. The article emphasizes the importance of overcoming challenges, such as the transport of renewable energy and the need for synchronized supply and demand, to accelerate the development of the green hydrogen sector.
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