- EIB says Africa could produce €1 trillion in green hydrogen per year by 2035.
- According to the EIB and its partners, the product is made by splitting water with renewable energy at a cost of less than €2 per kilogramme by 2030.
According to a study backed by the European Investment Bank (EIB), Africa has the potential to produce €1 trillion in green hydrogen per year by 2035, allowing it to export the fuel and boost local industry.
According to a study conducted in collaboration with the African Union (AU) and the International Solar Alliance, a number of African countries could produce much-needed fuel by harnessing the world’s best solar energy resource. According to the EIB and its partners, the product is made by splitting water with renewable energy at a cost of less than €2 per kilogramme by 2030.
As the world seeks alternatives to climate-warming fossil fuels and Europe seeks to reduce its reliance on Russian natural gas, demand for clean-burning fuel is increasing.
Egypt, Morocco and Mauritania, Namibia, and South Africa were identified as major production hubs by the researchers, but Nigeria was also identified as having significant potential.
While plans to produce the fuel are most advanced in those countries, it was stated that a number of other countries, ranging from Algeria to Nigeria and Mozambique, have the capacity to begin production.
Egypt would be the largest producer with 20 million tonnes per year, followed by the Southern African hub with 17.5 million tonnes, and Morocco and Mauritania could produce 12.5 million tonnes together.
According to the researchers, roughly half of that, or 15% of Europe’s gas needs, could be available for export.
According to a recent comprehensive analysis conducted by international consultancy CVA, large-scale green hydrogen investment can accelerate decarbonisation by allowing large-scale African energy users, such as fertiliser and steel producers, to use green hydrogen.