Africa can harness its strong solar energy resources to produce 50 million tonnes of green hydrogen a year by 2035 to meet local demand and for export, according to a study, announced last week by the European Investment Bank (EIB).
The study finds that producing green hydrogen from solar power is economically viable and can achieve a cost below EUR 2 (USD 2.1) per kilogramme, equivalent to energy costs of USD 60 a barrel.
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Unlocking Africa’s green hydrogen potential would bring numerous benefits such as helping to decarbonise local heavy industry, create jobs, secure global energy supply and improve access to clean water and sustainable energy.
According to the analysis, EUR 1 trillion can be invested in the production and transmission of green hydrogen in Africa.
The report is called Africa’s Extraordinary Green Hydrogen Potential and focuses on three hubs: Mauritania - Morocco, southern Africa and Egypt.
It estimates that tapping the sun’s energy for hydrogen production would mean 1,230 GWp of new solar energy generation.
The study outlines three prerequisites to reach the contemplated scale of hydrogen development: national planning, regulation and incentive schemes; pilot projects; and market-based partnerships to enable mass-scale off-take and to cooperate on needed infrastructure.
The report has been commissioned by the EIB, the International Solar Alliance and the African Union, with the support of the government of Mauritania, HyDeal and UCLG Africa. The analysis was conducted by consultancy CVA and will be followed by in-depth research in the next months.
(EUR 1.0 = USD 1.062)