Slide of the month (SOTM) February. Green hydrogen opportunity in Africa
Did you know that Africa has the potential to produce 50 (Metric tonnes) Mt worth of green hydrogen per year by 2035?
Within a project with a client from the hydrogen mobility sector, we analyzed the potential for imports of green hydrogen from Africa. One of the key insights we found was that Africa would be producing about 50 Mt/year on green hydrogen per year.
This is due to the surging demand for clean-burning fuel as the world looks for alternatives to climate-warming fossil fuels; Europe is seeking to lessen its dependence on Russia’s natural gas, which has proved unreliable due to the Russia-Ukraine war and other global uncertainties.
This has posed a great opportunity for companies in the energy sector in Africa. By 2030, several countries can produce fuel by splitting water using renewable energy at a cost of less than 2€ a kilogram. This will only be made possible by harnessing the world’s best solar energy resource in Africa.
According to a study backed by the European Investment Bank, energy production is set to be in three major hubs in Africa; Egypt, the North-western hub (Morocco and Mauritania), and the South African hub (Namibia and South Africa). While plans to produce the fuel are most advanced in these nations, several other countries ranging from Algeria to Nigeria and Mozambique, have the potential to start production. The largest producer would be Egypt, with 20 million tons produced annually, followed by the Southern Africa hub with 17.5 million tons, where Morocco and Mauritania could together produce 12.5 million tons. About half of that could be exported, equivalent to 15% of Europe’s gas needs.
africon provided the client with a comprehensive market overview and facilitated them with identifying and accessing opportunities in the sector. We also gave them practical recommendations for penetrating the market.
What is the potential for you in Africa? If you have any questions, contact us at email@example.com.
Read previous SOTMs (Slides of the month) here
Slide of the month (SOTM) January. Africa will install 600 new printing and packaging machines in 2023
Slide of the month (SOTM) December. Opportunities in the automotive manufacturing sector in Africa
Slide of the month (SOTM) November. Number of trade fairs in Africa
Slide of the month (SOTM) October. Automotive battery markets in Africa
Slide of the month (SOTM) September. Agricultural exports from Africa