Africa can be described as an "advanced" element of the energy transition. Historical data shows that Africa's greenhouse gas emissions are almost negligible, and even today, Africa's greenhouse gas emissions account for less than 2% of the world's total. At the same time, Africa is extremely rich in solar and wind energy resources.
A report from the University of Cambridge found that Egypt in northern Africa and South Africa in the south are the best places to invest in renewable energy generation. The cost per unit of solar power generation in Egypt is 29.7% lower than that of gas-fired power generation; South Africa is very suitable for investment in wind power, and the unit cost of wind power generation is 16.7% lower than that of coal-fired power generation. As early as a few years ago, many European countries have noticed the potential of renewable energy power generation in Africa and began to deploy in Africa, but the total amount is not large so far.
Data from the International Renewable Energy Agency shows that Africa's renewable energy investment accounts for less than 1% of the world's total, and there is great room for growth. The attitude of African countries towards energy transition and renewable energy generation is quite positive. Among the 195 countries that signed the Paris Climate Agreement in 2015, there are 33 African countries. Africa's innate resource conditions and the current energy shortage in Europe have catalyzed a delicate "chemical reaction" between the countries of the two continents.
Many European capitals have begun to focus further on renewable energy power generation projects in Africa. Africa is an ideal source of low-carbon electricity for Europe. In recent years, the installed capacity of renewable energy power generation in Africa has also grown steadily. However, like other regions, renewable energy power generation has intermittent problems. At present, large-scale and long-term power storage cannot be achieved. , The problem of low efficiency, the battery is helpful, but it is still not economical in general.
Under this circumstance, hydrogen energy has become an important supplement for African countries to carry out renewable energy power generation projects, especially green hydrogen and blue hydrogen. Favorite target.
There are two main types of hydrogen energy investment institutions currently active in Africa. One is development financing institutions, also known as development banks or development financing companies. They are usually supported by the government or charitable organizations. Carbon projects provide venture capital and technical support; the other category is export credit agencies, which provide import and export financing and insurance (guarantee) to private, semi-official or official institutions. In addition, there are green bonds and green infrastructure funds, etc., which also provide funds for hydrogen energy projects in African countries.
Based on the experience of carrying out hydrogen energy projects in Egypt, European experts suggest that green hydrogen projects in African countries should take a three-step, step-by-step approach.
The first step is to open a demonstration plant: The government works with private electrolysis companies to carry out commercial-scale pilot projects, generally consisting of renewable energy power plants (solar or wind), electrolysis units and ammonia plants, so that the government can build capacity while understanding Challenges in carrying out projects locally, conducting technical research and development and developing preliminary policies and regulations.
Step 2: Develop local policies and regulations: If the demonstration plant is indeed commercially viable, the government should develop a comprehensive green hydrogen policy that takes into account domestic demand and global market trends to establish production targets, establish sectoral governance frameworks, and determine funding structures.
The third step is to develop the international export market: through the production of green hydrogen and the accumulation of experience, the production cost can be ultimately reduced to export liquid green hydrogen or products made with green hydrogen to countries or regions lacking renewable energy, including steel, polymers, metals, Methanol, etc., the government can also set up companies to enter into supply agreements with key export markets to build, upgrade or retrofit the transportation infrastructure needed to export green hydrogen or green hydrogen products.
Overall, the production of green or blue hydrogen in Africa has started and is accelerating. Although compared with traditional fuels, African hydrogen energy is not yet cost-competitive, but the future is promising. The green energy demand in Europe may boost the development of the hydrogen energy industry in Africa, accelerate the research and development of related technologies and the integration of the value chain, and ultimately make Africa an important green hydrogen producer and exporter in the world.
