Today’s lifestyle requires increasing amounts of energy, especially with the advancement of modern technology and the variety of its applications, compounded by a growing user base alongside a continuously rising global population. Wars, particularly the conflict in Ukraine, have triggered a global energy crisis due to a shortage of fossil fuels (oil). This has led to unprecedented hikes in natural gas and coal prices, forcing Europe to import significantly larger amounts of liquefied natural gas than usual, which exacerbates the challenges posed by climate change.
This situation has shifted focus towards another type of fuel that carries equal importance, reduces dependency on fossil fuels, and importantly, does not pollute the environment or contribute to significant changes in the Earth’s climate; this fuel is known as green fuel.
What is Green Fuel (Green Hydrogen)?
Green fuel is a global, light, and highly reactive fuel obtained by generating hydrogen through a chemical process known as electrolysis. This method uses electric current to separate hydrogen from the oxygen present in water. If the electricity is sourced from renewable sources, energy is produced without emitting carbon dioxide into the atmosphere. Hydrogen is obtained by splitting water (H2O) molecules into oxygen (O2) and hydrogen (H2).
It’s noteworthy that there are many types of hydrogen fuel, including green, blue, and gray hydrogen.
The Importance of Hydrogen Colors:
Hydrogen is the most abundant chemical element in the universe; however, it doesn’t exist in a free form, so it must be produced. It is recognized as an energy carrier, meaning it has the capacity to store energy that can be released later. From hydrogen, we can derive electrical, mechanical, or thermal energy without carbon dioxide emissions and with high performance, along with high-value-added chemical products like ammonia and methanol. In the various processes mentioned above, the primary byproducts are pure water.
The classification of hydrogen colors is based on the quantity of carbon dioxide emitted during production:
- In the case of gray hydrogen, it emits 10 kg CO2/kg H2, making up the bulk of the mainstream hydrogen market; this is done through thermal conversion of natural gas, which still produces a considerable amount of carbon dioxide.
- For blue hydrogen, it emits 3.5-4 kg CO2/kg H2. It is less polluting and is derived from gray hydrogen methods, but follows carbon capture and storage processes, which reduce emissions of greenhouse gases into the environment.
- In the case of green hydrogen: it emits zero (0) kg CO2/kg H2, meaning green hydrogen is completely clean, obtained from renewable sources using green energy.
The principle behind green hydrogen is clear and straightforward: utilizing renewable energy sources to split water into hydrogen and oxygen. The result is a fuel source that only releases water upon consumption. Applications are limitless, ranging from powering cars to heating homes.
To ensure hydrogen is “green,” the electricity used must come from renewable sources, such as wind or solar power. The only byproduct is oxygen, which is harmless and is the air we breathe every day.
Conversely, most hydrogen produced today is “gray” or “blue,” derived from fossil fuels, primarily natural gas, and this process releases large amounts of carbon dioxide, which is harmful. Currently, green hydrogen production constitutes less than 1% of total hydrogen production.
Additional differences between the three types include:
- The first difference is economic; gray hydrogen has been found to be the cheapest at 1.33 Euros/kg H2, followed by blue hydrogen at 1.68 Euros/kg H2, while green hydrogen has the highest cost at 3.54 Euros/kg H2 for solar energy. Although the current cost of producing green hydrogen is higher, the development of new green hydrogen plants and a compelling commitment to generating this element means the cost gap is gradually diminishing.
- The other difference is strategic; green hydrogen prefers self-sufficiency by utilizing existing natural resources from around the world, limiting or eliminating reliance on third countries. One downside of blue hydrogen is its dependence on natural gas-producing nations.
Apart from colors, there are other less common types of hydrogen such as pink hydrogen, which uses electricity generated from nuclear power plants for electrolysis, while yellow hydrogen is produced using electricity from mixed sources, ranging from renewable energy to fossil fuels. Notably, hydrogen derived from solar energy is considered yellow hydrogen. Other types include turquoise hydrogen, created from methane pyrolysis, or black hydrogen, obtained from burning coal.
Advantages and Disadvantages of Green Fuel:
Advantages of Green Fuel:
Green fuel (green hydrogen) has several benefits:
- It is 100% sustainable.
- Green hydrogen emits no polluting gases, either during combustion or production. As noted by the International Energy Agency, this method of obtaining green hydrogen could save 830 million tons of CO2 emissions annually.
- Storage- Friendly: Hydrogen is easy to store, allowing it to be used later for other purposes at non-consecutive times after production. Future applications involve compressed hydrogen tanks, which can store energy for long periods and are easier to handle than lithium-ion batteries due to their lighter weight. Hydrogen can also serve as large-scale seasonal storage to cope with fluctuations in solar and wind energy, aiding in decarbonizing complex sectors like the chemical industry.
- Versatile: Green hydrogen can be converted into electricity or industrial gas, and used for commercial, industrial, or transportation purposes.
- It can produce both power and drinking water in the future by combining hydrogen and oxygen in a fuel cell. This process has proven highly beneficial in space missions, for instance, by sustainably supplying crews with water and electricity.
- The great versatility of hydrogen allows its use in consumption sectors that are extremely hard to decarbonize, such as heavy transport, aviation, and shipping. Multiple ongoing projects, such as Hycarus and Cryoplane, promoted by the European Union, aim to integrate hydrogen into passenger aircraft.
Disadvantages of Green Fuel (Green Hydrogen):
- High Cost: Generating energy from renewable sources, which are essential for producing green hydrogen through electrolysis, can be more expensive, resulting in higher hydrogen costs. However, experts have long anticipated that green hydrogen costs will decline swiftly, likely becoming cost-competitive with reduced-emission fossil fuels within this decade.
- High Energy Consumption: Producing hydrogen generally, and green hydrogen specifically, requires greater energy than other fuel types.
- Safety Issues: Hydrogen is highly volatile and flammable, necessitating extensive safety measures to prevent leaks and explosions.
Nevertheless, the impact of green hydrogen as a fuel is becoming tangible in many countries worldwide, including the United States, Russia, China, France, and Germany. Others, like Japan, are taking it a step further, aiming to transition to an economy entirely based on green hydrogen.
In recent years, a number of projects have been launched, particularly within the European Union, aimed at introducing hydrogen as a fuel for passenger aircraft, but it will likely take several decades before this becomes a reality. Research is currently underway on using existing natural gas pipelines to transport hydrogen, although this would require upgrades to the pipelines. An experimental program in France has already blended hydrogen into the gas network for 100 homes. Additionally, there is potential to convert natural gas power plants to burn hydrogen as a backup during periods of high demand. One interesting field of development involves investigating the possibility of producing green hydrogen through the electrolysis of seawater to avoid depleting freshwater supplies on land.
Currently, Europe dominates the global green hydrogen market, accounting for 50% of revenues in 2021. This is due to significant European investments aimed at the energy transition towards clean energy and a hydrogen economy. Moreover, governments in European countries offer financial subsidies to businesses to promote sustainability and protect the environment. Although Europe represents the largest share of the green hydrogen market by region, the Asia-Pacific region has achieved the highest annual growth rate in the global green hydrogen market. Therefore, Asia-Pacific stands as the fastest-growing region in the green hydrogen market.
Potential of the African Continent for Green Hydrogen Production:
All major energy transformation pathways identify green hydrogen as the most credible solution available today for decarbonizing heavy industry and transport sectors. Few emphasize the vast technical and market potential for producing green hydrogen and its derivatives across the African continent, which presents a historic opportunity for economic and climate leadership. Realizing this potential will require unprecedented international cooperation to address significant barriers. Africa is recognized as a potential major player in producing green hydrogen, not just for itself, but also for other countries in Europe. However, several factors may positively or negatively affect the development of green hydrogen on the continent, especially given Africa’s available potential. Key elements include:
- The reality that green hydrogen opens the first carbon-free industrial opportunity in the world, by enabling the conversion of renewable energy sources into useful, transportable chemicals and value-added products. Many countries across Africa are well-positioned to achieve this through large segments of non-arable land and strong renewable energy potential. Thus, new opportunities and near-zero carbon emissions prospects are within reach.
- Africa boasts some of the world’s greatest untapped solar and wind energy potentials, along with freshwater bodies and hydropower. This unique situation enables it to become a major producer of green hydrogen.
- Rivers: 17 rivers with water catchment areas exceeding 100,000 square kilometers.
- Lakes: 160 lakes measuring more than 27 square kilometers.
- Basins: One-third of the world’s major international water basins (each greater than 100,000 square kilometers).
The International Energy Agency estimates that Africa holds 60% of the world’s best solar energy resources, yet currently contributes only 1% of global solar power generation capacity. Due to its geographic location, it can also benefit from energy trade between the continent and others, particularly Europe, if the right measures are taken.
According to the Asian Development Bank in 2017, the continent’s renewable energy generation could reach:
- 1,000 gigawatts from solar energy.
- 110 gigawatts from wind energy.
- 350 gigawatts from hydropower.
- 15 gigawatts from geothermal energy.
The production of solar energy in the continent has significantly increased in 2022.
Africa is characterized by diverse economic activities stemming from its rich natural resources, including human resources, agriculture, and trade both within and outside the continent, as well as its industries. The continent has enormous potential due to its diverse natural resources and is currently home to the largest free trade area in the world.
African export markets present amazing opportunities for developing this new sector today. Effective cooperation between the public and private sectors will be crucial for mobilizing investment and rapidly developing projects to produce green hydrogen in the quantities needed to achieve decarbonization goals by 2030.
The continent currently faces a huge energy gap, with approximately 600 million Africans lacking electricity. In sub-Saharan Africa, there is an estimated 75% of the world’s population without electricity while the average access to electricity on the continent is 45%. Rapid expected population and economic growth across the continent will require increasing energy supplies by harnessing renewable energy resources to produce green hydrogen, allowing countries throughout the continent to sustainably fuel this growth.
According to analysis from Deloitte Energy, African hydrogen producers are well-positioned to produce clean hydrogen at significantly lower costs than their European counterparts, by as much as three-quarters, due to widespread renewable energy availability and lower production costs.
Reports indicate that as hydrogen capacity rises throughout the 2030s, the cumulative solar and wind power capacity in the African continent will reach 75% of its total capability. This means that African efforts in solar, wind, and hydrogen energy will support each other and grow together to become significant energy sources.
Many African countries are perfectly positioned to develop green hydrogen, with strong solar and wind energy potentials, alongside large tracts of non-arable land. This can provide Africans with new access to clean energy sources, job opportunities in a zero-emission economy, public health benefits such as clean air, and the creation of local wealth and export revenues.
Challenges Facing the Continent in Producing Green Fuel
One of the most significant challenges facing the continent lies in the massive scale needed to develop the infrastructure required to support the large-scale production and export of green hydrogen. Many parts of Africa that are ideal for generating renewable energy still remain severely underdeveloped. Hence, substantial investments in transportation infrastructure are needed to connect renewable energy sources with production facilities and export hubs. Governments will also need to balance their broader energy strategy with the significant growth of renewable energy sources that are not dispatchable, which could strain existing national power grids.
The need for clean water to produce hydrogen presents additional challenges, particularly in regions already facing water resource scarcity. To address this issue, some projects are beginning to consider water desalination as part of their overall designs to meet clean water needs.
Moreover, while some countries are well-positioned to leverage existing gas pipeline infrastructure for transport and export, others need to build this infrastructure from scratch to access key export markets.
The capital cost required for large-scale green hydrogen projects presents significant risks at the project level that will need careful management to ensure sustainability and successful execution. The political and investment environment across Africa is diverse and often challenging, necessitating thorough study and management due to the scale of the necessary investments. While export-dependent projects have an advantage if they are sold into hard currency markets, there may still be a need for local subsidies and price support to make certain projects competitive.
If green hydrogen development is primarily driven by exports, genuine care would need to be taken (and governments may need to intervene strongly) to ensure that energy and infrastructure, along with water resources, benefit the country and the local communities at large.
Maximizing the benefits of African green hydrogen will require action on multiple fronts, including industrial policies, energy systems, international partnerships, regional cooperation, and local markets. These actions necessitate involvement beyond mere technical issues or supply and demand concerns, calling for a profound understanding of the political economy of manufacturing in developing countries and how these countries can position themselves within the new and emerging global value chains.
Furthermore, the potential for green hydrogen in Africa and capitalizing on the opportunities offered by the new green hydrogen industry will require a concerted effort from a diverse range of stakeholders. This includes government ministries, project developers, financiers, international organizations, financial institutions, think tanks, technical experts, and academic institutions. Visionary private sector partners and other international collaborators can provide expertise, capabilities, and access to capital. Simultaneously, they can work with host governments and local and regional institutions to streamline permitting processes and set up project frameworks that meet national and regional priorities for sustainable development and economic growth.
What are the Risks of Expanding the Green Hydrogen Sector in Africa?
- Focus on exports, leaving local populations without any benefits.
- Weak expansion in energy access for local populations.
- Depletion of local resources like land, water, or energy.
- Widening the gap between the rich and the poor.
- Failure to establish upstream/downstream industries.
- Lack of adequate education provision and local knowledge accumulation.
- Poor integration between local expertise and the workforce and the construction, operation, monitoring, and maintenance of production facilities.
How to Mitigate These Risks and Secure the Benefits?
- Prioritize benefits that extend to a broader population base.
- Engage civil society and both private and public sectors in decision-making processes.
- Ensure that control and ownership of projects lies with African actors.
- Investments in local economies to establish upstream (e.g., manufacturing renewable energy technologies) and downstream industries (e.g., ammonia, fertilizers, or green steel production).
- Investment in training opportunities.
- Establish a grievance mechanism as a tool for verifying local people’s engagement.
- Create certifications and standards for producing and exporting green hydrogen to secure local benefits.
The African Green Hydrogen Alliance:
The beginning of realizing Africa’s green hydrogen potential came through governmental efforts; six pioneering African nations (Egypt, Kenya, Mauritania, Morocco, Namibia, and South Africa) formed the African Green Hydrogen Alliance to intensify cooperation and promote the development of green hydrogen projects on the continent. The African Green Hydrogen Alliance was launched at the Global Green Hydrogen Summit on May 18, 2022, in Barcelona, supported by high-level United Nations climate champions, the Green Hydrogen Organization, the African Development Bank, and the United Nations Economic Commission for Africa.
The alliance focuses on public and regulatory policies, capacity building, financing, and certification needs to mobilize green hydrogen production for local use and export. It aims to unify African voices in global climate and energy dialogues, generating awareness, opportunities, and new actions in the industry. The alliance (AGHA) seeks ambitious plans to produce 30 to 60 million tons of clean hydrogen annually, potentially adding up to 126 billion USD to the GDP of its members by 2050 and creating up to 4 million new job opportunities. Other African countries have been invited to join the alliance, and several have already joined, including Angola, Nigeria, Ethiopia, and Djibouti.
With its abundant renewable energy resources and vast land area, Africa has an opportunity to emerge as the frontrunner in the burgeoning green hydrogen industry, creating emission-free jobs locally. However, to achieve this goal, radical cooperation between governments, the private sector, and civil society is needed to establish the correct policies and investment frameworks while securing long-term purchase agreements. The African Green Hydrogen Alliance will significantly advance these developments.
Six Steps to Achieve AGHA Goals and Enhance Green Hydrogen Potential:
- Establish a national vision and build a partnership strategy, mobilizing resources to support a green hydrogen economy and a national hydrogen roadmap that defines commitments, goals, and clear actions. For example, Morocco has announced a clear strategy for green hydrogen, with steps and objectives for the nation over the next 30 years, committing to 78 gigawatts of electricity production capacity by 2050.
- Leverage bilateral and multilateral relationships, and establish hydrogen partnerships to integrate value chains that can help signal their credibility as market suppliers. For example: Namibia and Germany signed a partnership in August 2021 to develop green hydrogen.
- Strengthen regulations; AGHA members can take steps to ensure clear, transparent, and relevant production regulations for green hydrogen’s recognition and implementation, creating certainty and greater fundability. For instance, both Morocco and Egypt are parties to the ISO technical committee that sets standards for hydrogen production, storage, transport, measurement, and usage, which can play a significant role in coordinating global trade in hydrogen and its derivatives.
- Activate access to low-cost financing; hydrogen projects require substantial capital expenditures, and reducing capital costs is essential for accessing low-cost funding, which is a critical prerequisite. To achieve AGHA’s ambition for green hydrogen, an estimated cumulative investment of up to 900 billion USD by 2050 is required. This translates to around 6 billion USD annually from now until 2030, about 30 billion USD per year from 2030 to 2040, and approximately 55 billion USD per year from 2040 to 2050, representing about 2% of the total annual investment needed in energy.
For instance, Egypt has initiated a public-private partnership with the European Bank for Reconstruction and Development to enhance renewable energy sources, attracting substantial investments in Egypt, including the establishment of large-scale photovoltaic solar power plants.
Another example is that Mauritania has exploited the carbon and credit market to finance the expansion of the country’s largest solar energy farm.
- Develop upstream infrastructure and build long-term capabilities in the hydrogen green infrastructure sector to support green hydrogen’s value. For instance, South Africa plans to develop the deep-water port of Boegoebaai, supported by a 550-kilometer railway and associated services.
- Support innovation, skills, research, development, and investment in local skill-enhancement initiatives. Namibia, for example, established the Green Hydrogen Research Institute in October 2021 as a national research center to help Namibians enhance their skills and develop local businesses.
Expert Predictions on Africa’s Future and Green Fuel:
The report “African Energy Outlook: Q2 2023,” recently released by the African Energy Chamber (AEC), discussed the current and future outlook for renewable energy sources in the continent. The most exciting finding is the competitive growth in the field of electrochemical hydrogen. Africa’s declared current hydrogen capacity has surpassed approximately 125 gigawatts, and the chamber believes that if the alliance (AGHA) can meet its goals—or even come close to its projections—the prospects will go a long way in ensuring reliable energy access for the millions of Africans currently suffering from energy poverty. Additionally, the group is likely to pave the way for hydrogen to penetrate other areas of the continent.
The International Renewable Energy Agency (IRENA) indicates that Africa has the highest technical potential for producing low-cost green hydrogen by 2050.
The technical potential for producing green hydrogen for less than 1.5 USD per kilogram by 2050.
The European Investment Bank estimates that Africa could have a green hydrogen production capacity exceeding 50 million tons annually by 2035.
International reports indicate announcements of several African economic projects for exporting green hydrogen, such as:
- A 15-gigawatt Aman project in Mauritania.
- The 3-gigawatt Tsau Khaib project in Namibia.
- The Suez Canal Economic Zone project with a capacity of 4 gigawatts in Egypt.
Energy scientists indicate that cheap hydrogen could change the game for its economies, enabling a “scenario shift” from energy poverty to leading green energy initiatives. Simultaneously, initiatives like the AGHA and various national strategies have an implicit connection between export markets and local hydrogen economics: hydrogen, ammonia, and derivatives.
Estimates suggest that hydrogen supplies from the AGHA group could help:
- Reduce around 6.5 gigatons of CO2 globally.
- Contribute an estimated 51 billion USD to the GDP by 2050—equating to approximately 5% of the 2021 GDP of AGHA nations and about 126 billion USD for Africa’s GDP.
Additionally, 46 billion USD could come from renewable energy contributions to GDP and 15 billion USD from contributions by electrolysis by 2050.
- Create between 2.2 million to 4.2 million new jobs by 2050.
African countries might score two objectives with one effort; by utilizing their unique renewable energy potential to produce low-carbon fertilizers while tapping into the potential growth market for hydrogen exports. Many African countries are exploring the potential for producing green ammonia for fertilizers, either for export or domestic markets, potentially leading to a significant growth market for African (green) fertilizers.
Nigel Topping and other UN climate advocates remarked: “Africa, with its vast renewable energy resources and land area, has a unique opportunity to become the leading candidate in the booming green hydrogen industry, creating emission-free jobs locally.”
Jonas Moberg, the CEO of the Green Hydrogen Organization, stated, “Green hydrogen is key for Africa’s transition to green energy. It must serve the needs of its growing population and industrial requirements. It also presents a significant export opportunity for the continent.”
Deloitte’s energy global financial model predicts that African hydrogen export revenues could reach 110 billion USD by 2050. By then, the consultant expects North Africa—to hold export potential of about 44 million tons—to be one of four regions worldwide that will contribute nearly half of global hydrogen production and 90% of trade.
Conclusion:
There is an evident international consensus that green hydrogen plays a critical role in transforming the world toward a sustainable energy future. Hence, green hydrogen could become Africa’s secret weapon in the global energy race, characterized by the capacity to dramatically shift from fossil fuel consumption to becoming a green energy giant globally.
References
[1] –https://www.iberdrola.com/sustainability/green-hydrogen [2] –https://www.iberdrola.com/about-us/what-we-do/green-hydrogen/difference-hydrogen-green-blue [3] –https://www.forbesafrica.com/focus/2023/08/14/the-rise-of-green-hydrogen-in-africa/ [4] –https://www.forbesafrica.com/focus/2023/08/14/the-rise-of-green-hydrogen-in-africa/ [5] –https://www.iberdrola.com/about-us/what-we-do/green-hydrogen/difference-hydrogen-green-blue [6] – https://climatechampions.unfccc.int/africa-green-hydrogen-alliance [7]– https://www.iberdrola.com/sustainability/green-hydrogen [8] –https://www.iberdrola.com/sustainability/green-hydrogen [9] –https://www.prysmian.com/en/insight/telecoms/green-hydrogen-what-is-it-pros-and-cons [10] -Green hydrogen in Africa: opportunities and limitations file:///C:/Users/userr/Downloads/Green_hydrogen_in_Africa_opportunities_and_limitat%20(1).pdf [11] – Ephraim Bonah Agyekum: International Journal of Hydrogen Energy Volume 49, Part D, 2 January 2024. [12] – https://climatechampions.unfccc.int/africa-green-hydrogen-alliance [13] – Dr. Solomon Agbo: Green Hydrogen for Africa- Potentials, opportunities and challenges https://www.uneca.org/sites/default/files/ACPC/CCDA9/pre-events/Green%20Hydrogen%20for%20Africa-Potentials%2C%20opportunities%20and%20challenges%20-%20Solomon%20Agbo.pdf [14] – Green hydrogen in Africa: A continent of possibilities?
