Green Hydrogen: The new energy frontier in Africa28 Feb 2022 00:16
https://www.weekendpost.co.bw/33627/business/green-hydrogen-the-new-energy-frontier-in-africa/
Electricity generation is most commonly the leading contributor to CO2 emissions in most countries, at which the majority of NDC in Africa are targeted at. Massive strides have been made into the installation of renewable energy capacity, driving the decarbonisation of the energy sector. The biggest issue surrounding renewables is the difficulty of storing the electricity at scale and for prolonged time without long distant, inefficient transmission, as well as the irregularity of electricity supply from these technologies. While batteries have certainly helped at a micro-scale, they are not yet cost-effective at macro-scale.
Hydrogen, produced through electrolysis of water, is the perfect solution to the problem. Specifically green and blue hydrogen are suitable for further development in Africa. The development of a green hydrogen economy in Africa has since gathered considerable attention, driven by the continent’s high renewable energy potential and investment coming from developed countries desperately looking for means of decarbonising their own industries. Green hydrogen is best positioned to reduce CO2 emissions in typically “hard-to-abate” sectors such as Industry (e.g., construction and steel manufacturing), centralised energy systems, as well as transportation and mobility. Natural gas will form the basis of hydrogen integration as methanation becomes commercially viable and pipeline infrastructure is upgraded to support hydrogen blends.
The EU has introduced its hydrogen strategy in 2020, proposing a shift to green hydrogen by 2050, mainly services through a steady supply coming from Africa. Africa is expected to become the preferred location for the green hydrogen economy due to its growing penetration in renewable energy, greater land availability, easy access to water sources and port facilities, enabling Africa to position itself as a major hydrogen export hub.
Development Finance Institutions (DFI) are thought to be the primary financiers of green hydrogen projects in Africa, as they have mandates for green investments. Additionally, Export Credit Agencies (ECAs) are expected to become major financial contributors; as well as alternative financing structures such as green bonds and green infrastructure funds.
Despite Africa’s dire energy need, over-supply of electricity has become a significant challenge, primarily driven by poorly maintained generation, transmission and distribution (T&D) systems. Hydrogen production and storage can be a useful technology to solve this problem. Excess electricity can be used to generate green hydrogen during times of oversupply, and in turn be utilised to generate electricity during an undersupply of electricity. Hydrogen is also a suitable clean resource to help decarbonise numerous other industries including transportation, building heat and industrial sectors.
Sign In
Follow the stocks
