Africa is capable of producing 50 million tons of green hydrogen a year by 2035, and the production and transmission of green hydrogen could lead to a €1 trillion (R18.7 trillion) investment, according to a new study.
It said hydrogen could yield more than one third of Africa’s current energy consumption, boosting gross domestic product, improving clean-water supply and empowering communities.
The study, Africa’s Extraordinary Green Hydrogen Potential report, carried out by international consultancy CVA, was commissioned by the European Investment Bank (EIB), International Solar Alliance and the African Union, with the support of the government of Mauritania, HyDeal and UCLG Africa, and issued in a statement on behalf of the Africa Energy Indaba 2023, yesterday.
Green hydrogen was economically viable at €2 (R37.56)/kg and could expedite low-carbon economic growth across the continent and reduce emissions by 40%, replacing 500 million tonnes of carbon dioxide a year, the report found.
The analysis emphasised that green hydrogen produced in Africa was economically viable, more cost effective than traditional fossil-fuel energy sources, and could accommodate domestic energy demand while enabling the export of green hydrogen to global markets.
Ambroise Fayolle, vice-president of the EIB, 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 co-operation between public, private and financial partners.”