Energy is a necessity for every thriving economy. In recent times, global governments have prioritised the development of renewable energy to cater to the energy deficit and reduce carbon emissions. Research and emerging technologies have birthed various types of renewable energy to support power generation, and green hydrogen is one of these innovations. Hydrogen is the elementary form of all molecules; it has the lowest energy content by volume and the highest power content material of any gas.
Green hydrogen is hydrogen produced by the electrolysis (splitting water into hydrogen and oxygen) of water using renewable electricity. Its production facilities could be tied directly to renewable or other non-greenhouse-gas-emitting forms of electricity production. Green hydrogen production has caused a significant lowering of greenhouse gas emissions, with its primary purpose being to help limit global warming to 1.5oc. Alongside electricity, green hydrogen is used in high-temperature processes and applied in long-haul energy storage. It is also used in feedstock to produce green ammonia and organic chemicals. Green hydrogen powers fuel-cell electric vehicles and can be used to heat fuel for buildings. Developing and deploying hydrogen at a sizable scale requires close coordination between all stakeholders, from production to consumption.
Furthermore, 2023 has revealed remarkable progress in the hydrogen world, with significant developments shaping its market. This is evident in Canada’s unveiling of a hydrogen tax credit scheme in the spring of 2023. Oman unveiled the winners of its first green hydrogen tender in March and its second in December. Norway also contributed to this progress by agreeing to introduce a Contract for Difference (CfD) scheme this year, while China significantly expanded its green hydrogen output in 2023. The European Investment Bank (EIB) committed $2.9 billion to develop renewable hydrogen projects in Brazil, India and Namibia. In addition, the World Bank provided $1.5 billion to India and $150 million to Chile to support early-stage renewable hydrogen projects through financing, risk mitigation and capacity building. The financial commitments stated above show how viable green hydrogen is globally, including in Africa.
The energy sector seeks cleaner and more sustainable alternatives, and green hydrogen is emerging as a promising solution for decarbonising various industries. Nigeria needs to develop a policy framework and action plans that portray the country’s feasibility of green hydrogen production. The first step is to develop a national green hydrogen roadmap that builds on or surpasses the vision for green hydrogen embedded in the Nigerian Energy Transition Plan (ETP). The government and critical stakeholders can drive this roadmap with aggressive planning and structuring. Nigeria can attain its energy independence with diverse resources embedded in Nigeria, such as green hydrogen, solar and wind. Therefore, it is necessary to maximise these resources in achieving Nigeria’s energy access goals.