Introduction
Global awareness of the need for decarbonisation has shifted immense interest toward hydrogen as an alternative fuel in the industrial sector. Though widely used in several industrial applications such as the production of ammonia and methanol as well as oil refining, it is yet to occupy the mainstream role of being the dominant fuel for transportation and electricity generation that has been expected. However, due to its abundance in nature, versatility as both feedstock and fuel, and clean-burning nature, the element is expected to help lead to massive decarbonisation of hard-to-abate sectors such as the chemicals, transportation and steel industries. According to a study by the Hydrogen Council Coalition, hydrogen could account for one-fifth of total final energy consumption by 2050 if it were to be deployed at a scale. The implication is a reduction of an estimated six gigatons of carbon emissions compared with today’s level.
In the race to mitigate climate change, more countries, like the United Kingdom, the European Union, Japan, and South Korea, have committed to achieving net zero by 2050. Hydrogen can be a significant player in reaching these targets, as evident in the energy transition strategies for various governments. However, the environmental impact of hydrogen depends on the carbon emissions associated with its production method.
Hydrogen Types/Production Processes
Hydrogen can be labelled green, blue, grey or brown, depending on the production method and technologies employed in its extraction.
Green hydrogen, considered the cleanest form, is produced from water electrolysis, i.e., splitting water into oxygen and hydrogen gas using electricity. If the electricity is produced from renewable sources, the hydrogen is considered green and carbon-free – the only carbon emissions are from those embedded within the generation infrastructure. Theoretically, it can be stored for excess energy from renewable energy sources.
Another technology for hydrogen production that could help attain net zero is the production of blue hydrogen through steam methane reforming (SMR). SMR is a process in which methane from natural gas is heated, with steam and a catalyst, to produce synthetic fuel. A distinct characteristic of blue hydrogen production is carbon capture and storage technology to avoid carbon emissions from being released into the atmosphere. An estimated 90% of carbon emissions are captured if the SMR process and flue gases are treated.
The role of blue hydrogen is also vital in a world where fossil fuel consumption seems like an addiction. Gazprom, a Russian majority state-owned multinational energy corporation, has stated that Russia is expected to become the largest exporter of blue hydrogen by 2030. Current market prices are fairly competitive at $2 per kilogram of hydrogen.
The other forms of hydrogen include brown hydrogen, produced from coal gasification, and grey hydrogen, produced through natural gas or petroleum. Grey hydrogen is the most widely used in industrial sectors, particularly in petroleum refining and fertiliser production. The major difference between grey and blue hydrogen is the absence of carbon capture and storage in the former. It is the cheapest in comparison to other forms of hydrogen and can be used for electricity generation, energy storage, and transportation needs in cars, trucks, and trains.
Opportunities for Nigeria
Nigeria is rich in renewable energy sources, especially solar and hydro. The country’s location in the sunbelt affords ample sunshine all year round, making the production of energy through solar photovoltaics (PV) a viable option in the pecking order of renewable energy sources in the country. Going by the vast amount of clean energy sources the country has, there is room for large-scale clean energy production that could pave the way for the country’s accelerated production of green hydrogen.
Also, the growing portfolio of mini-grids as part of the Federal government’s initiative to accelerate energy access for rural communities through the Rural Electrification Agency (REA) provides an opportunity for green hydrogen production. This is feasible using power generated from the huge solar and hydropower potentials at 427 GW and 14 GW, respectively. In addition, Nigeria’s annual wind speed at 10m above ground level varies between 2.3 to 3.4m/s for sites and coastal areas and 3.0 − 3.9 m/s for high land areas and semi-arid regions. Given these abundant clean energy resources, if Nigeria can attract the necessary investment to develop infrastructure, the country can grow into a key player in the global hydrogen market. This could be done by establishing local and international partnerships with investors, green energy companies, and even development institutions in the hydrogen economy.
Channelling a portion of Nigeria’s vast natural gas reserves, estimated at 5,475 billion cubic meters according to the Energy Information Administration (EIA), into the production of blue hydrogen will massively expand the economy, leading to job creation and stimulation of international investments in Nigeria, while helping other nations to meet their decarbonisation targets.
African Hydrogen Strategies
African countries such as Egypt, Namibia, Morocco and South Africa are gearing efforts to become net exporters of green hydrogen through established policies that enable production. These countries have taken critical action to create their national hydrogen development strategy and are already signing Memorandums of Understanding (MoUs) with other countries and international organisations. For example, in 2021, the government of Namibia and Belgium signed an MoU at COP26 to partner on the development of a hydrogen refuelling station, industrial hydrogen applications and a medium-sized solar power plant, which will produce one million tonnes of green hydrogen annually by 2026. Elsewhere, an agreement has been signed between Egypt’s Sovereign Fund, Norway’s Scatec, the Fertiglobe company owned by the Dutch “Orascom”, and Abu Dhabi’s National Oil Company. The agreement will see Scatec build, operate and own most of the plant, while EBIC, a subsidiary of Fertiglobe, will serve as the product off-taker. These agreements attest to the viability of an African hydrogen market that Nigeria can readily tap.
The future of Nigeria in the global hydrogen economy is dependent on actions that the country can take now. One of such is to develop its national hydrogen strategy. The hydrogen strategy should highlight hydrogen production targets and understudy the necessary financial, technical and electricity production that would be required.
For example, Nigeria can enter into a strategic partnership with a developed country in need of hydrogen with a commitment to supply XX million tonnes of green hydrogen to the country on the agreement that the country supplies funds for the construction of XX MW wind power plant
in Nigeria. This would expand the country’s green energy capacity, improving energy access and creating more jobs while developing the green hydrogen economy.
Also, it should devise ways to maximise the abundant gas resources in the country to produce blue hydrogen, identifying potential regional and international partners. Efforts are already being made in this strain through the German-Nigerian Hydrogen office, a project implemented in cooperation with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. The hydrogen office shows the mutual relationship between the two countries and will be a major player in advancing bilateral hydrogen agreements.
The strategy document will mark the first step toward hydrogen production in Nigeria and drive the investments required for infrastructure development. Moreover, policies that favour the growth of clean energy technologies, helping to make them more cost-competitive, must be implemented. An example of this is the total removal of any form of subsidy for fossil fuels in Nigeria. The recent removal of subsidies would make green electricity more competitive with fossil power generation, compelling more investments in green power plants.
In addition, the government must become more proactive in seeking international partnerships that will help develop the hydrogen landscape in the country, encourage local workforce development and stimulate local industrial consumption of hydrogen in the country.
Sustainability is now a buzzword for the energy transition. For Nigeria to ensure a sustainable energy transition, the government and the private sector remain vital stakeholders that must be effectively engaged. The government must use its powers to effect policies that will encourage investments from local and international investors and lead in implementing a regional market strategy that will stimulate a sustainable energy transition in Nigeria.