Africa’s electrolyzer pipeline capacity has reached 114 GW owing to large-scale developments across key markets such as Namibia, Mauritania, South Africa, Egypt and others. As such, global market intelligence firm Rystad Energy notes that the continent is well positioned to attract further investment in green hydrogen, particularly from Europe where consumption is relatively high.
Of the total 114 GW pipeline, 61% or 70 GW is tied to sub-Saharan Africa, with Mauritania boasting 50% of this region’s capacity. While factors such as Africa’s easy access to land, low labour costs and vast renewable resources present a huge opportunity for the development and monetization of green hydrogen, inadequate investments represent the biggest hurdle restricting the market. As a result, only 13 MW of the planned 114 GW green hydrogen projects have reached final investment decision.
However, with Europe in search of new energy partners to address its energy crisis, financing mechanisms such as the European Union Green Industrial Plan; Germany’s $957 million auction scheme; as well as H2Global’s and various European government-led initiatives present an opportunity for Africa to address its green hydrogen investment and infrastructure build up needs.
“The global green hydrogen economy is beginning to take shape, with Africa and Europe becoming a dynamo of production and use. Africa’s unparalleled mineral reserves are critical for electrolyzer production and the region’s fantastic renewable potential combined with Europe’s prodigious production and import targets will not just alter energy flows, they will create them anew,” said Rajeev Pandey, Clean Tech Analyst, Rystad Energy.
Already, Europe-Africa cooperation on green hydrogen production has materialized with Norwegian clean energy firm Scatec providing $8 million in funding to Egypt; Germany signing offtake deals with Namibia, South Africa and Egypt; and the UK’s Globeleq funding the development of a 3.6 GW electrolyzer pipeline in Egypt, states Rystad Energy.
With Africa targeting to deploy its over 52 green hydrogen projects through 2025 and European countries such as Germany looking to import up to 70% of its green hydrogen to meet demand, Africa is set to witness an influx in capital from the European countries.
Source : Energycapitalpower
