Green Hydrogen - Afrikan Heroes

Hydrogen, the New Energy Rush for Africa

May 5, 2022

director-general of the South Africa Department for Science and Innovations, Dr Phil Mjwara

Green hydrogen will be one of the largest economic opportunities over the next 30 years. Driven by international actions to combat climate change, it has the potential to revolutionise numerous value chains in the energy industry and across both the mobility and manufacturing sectors. With rapidly improving technology and decreasing costs for fuel cells, green hydrogen is becoming a more appealing fuel alternative in Africa.

At the core of green hydrogen production is the availability of renewable energy that is not being utilised for its prime role as electricity supply. For Europe, the lack of spare renewable energy capacity will be a roadblock for the hydrogen economy and so the search is on for viable locations for production. Pilot projects have started in Chile and the Middle East, but the greatest opportunities lie in Africa with many European backed schemes at various stages in the planning process.

Backed by Africa’s extensive renewable energy resources – the International Renewable Energy Agency estimates that renewable energy capacity in Africa could reach 310GW by 2030. The hope is that development of green hydrogen projects will not only address continent-wide energy demand, increasing energy security and contribute to domestic energy independence, but will provide an environmentally sustainable fuel alternative for years to come. The big question, however, is whether that hydrogen production will benefit the African energy transition or be shipped back to Europe.

South Africa’s hydrogen valley

In South Africa, the government is attempting to match the synergies between platinum mining, renewable energy, and hydrogen production to form a hydrogen hub. Platinum is a key component in Polymer Electrolyte Membrane (PEM) electrolysis used to produce hydrogen at scale and in fuel cells themselves. The hydrogen valley will serve as an industrial cluster, bringing various hydrogen applications in the country together to form an integrated hydrogen ecosystem.

The initiative is part of the work being done to support the implementation of the National Hydrogen Society Roadmap, which was recently approved by Cabinet, as well as phase 3 of the country’s Economic Reconstruction and Recovery Plan.

Speaking at the launch, the director-general of the South Africa Department for Science and Innovations, Dr Phil Mjwara, said the establishment of a hydrogen valley was an important national initiative. “The implementation of phase 3 of the Economic Reconstruction and Recovery Plan is driven by the core elements of ‘reconstruct’ and ‘transform’, and this entails building a sustainable, resilient and inclusive economy,” he said. “The establishment of a South African hydrogen valley is therefore seen as an opportunity that has great potential to unlock growth, revitalise the industrial sector, and position South Africa to be an exporter of cost-effective green hydrogen to the world. Hydrogen therefore remains an integral part of our Economic Reconstruction and Recovery Plan.”

South Africa’s proposed hydrogen valley will start near Mokopane in Limpopo, where platinum group metals (PGMs) are mined, extending through the industrial and commercial corridor to Johannesburg and leading finally to Durban. The hydrogen valley will be used to establish, accelerate, and embed niche innovations through upscaling and replication. Hydrogen and fuel cell technologies offer an alternative source of clean electricity, while hydrogen allows for energy to be stored and delivered in usable form.

The feasibility study, conducted by Engie, identifies nine hydrogen-related projects across the mobility, industrial and construction sectors that could be used as a springboard for the establishment of the hydrogen valley. One project will focus on converting heavy-duty diesel-powered trucks to fuel cell-powered trucks, which will support increased consumption of hydrogen in the transport sector. The projects will also facilitate the commercialisation of publicly funded intellectual property, while contributing to the beneficiation of PGMs in targeted geographic areas. Hydrogen and fuel cell technologies offer an alternative source of clean electricity, while hydrogen allows for energy to be stored and delivered in usable form. Using hydrogen as an energy carrier could potentially reduce South Africa’s dependence on fossil fuels that cause global warming, while reducing the country’s reliance on imported oil.

Namibia to develop hydrogen hub

In West Africa, an ambitious project to produce 300,000 tonnes of green hydrogen each year is taking shape. The Namibian Government has appointed Hyphen Hydrogen Energy to develop the country’s first large-scale, vertically integrated green hydrogen project in the Tsau //Khaeb national park. The project, worth an estimated $9.4 billion, will produce either pure green hydrogen or in derivative form such as green ammonia.

“The first phase, which is expected to enter production in 2026, will see the creation of 2 GW of renewable electricity generation capacity to produce green hydrogen for conversion into green ammonia, at an estimated capital cost of $4.4 billion,” Marco Raffinetti, Hyphen CEO, says. “Further expansion phases in the late 2020s will expand combined renewable generation capacity to 5 GW and 3 GW of electrolyser capacity, increasing the combined total investment to $9.4 billion.”

Once fully developed, the project will provide a major boost to Namibia in terms of foreign direct investment and job creation. The $9.4 billion investment amounts to the same order of magnitude of the country’s current GDP and will see 15,000 direct jobs created during the four-year construction of both phases, with a further 3,000 jobs created permanently during the operational phase. More than 90 per cent of all these jobs created are expected to be filled by Namibians. In addition to taxes, Hyphen will pay concession fees, royalties, a sovereign wealth fund contribution and an environmental levy to the government.

“The Tsau //Khaeb national park is among the top five locations in the world for low-cost hydrogen production, benefiting from a combination of co-located onshore wind and solar resources near the sea and land export routes to market,” Raffinetti adds. “Namibia’s world class natural resources, combined with a progressive, pro-investment and visionary government under the leadership of President Hage Geingob, has enabled the country to move with incredible speed to position itself as the leading edge of Africa’s ambitions to enter the green hydrogen production space.

“This collective deep technical expertise across the entire green hydrogen value chain, combined with our financial strength and experience in developing, fundraising, and implementing infrastructure projects in Africa, will be crucial in successfully delivering a project of this magnitude and complexity.”

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

African Business, Political Leaders Start Dialogue on Green Initiative

December 6, 2021

NJ Ayuk, Executive Chairman at the African Energy Chamber.

African leadership across business and political divide will kickstart dialogue on the continent’s green energy sector, the African Green Initiative, which is being launched during an African Green Summit at African Energy Week 2022, being held on 31 October to 4 November in Cape Town, South Africa, will feature consultations driven by the private sector and will precede the next COP27 international climate conference, while promoting discussions on the continent’s energy transition, marking a significant step towards Africa’s green energy future as part of our energy mix.The initiative – which will be significant for the continent as stakeholders move to exploit Africa’s renewable energy resources and drive the continent’s shift towards renewables – will culminate into the African Initiative and will be unpacked during an African Green Summit which will take place at AEW 2022. We have had a discussion about Green Hydrogen. African countries have the possibility to become a hydrogen powerhouse by 2030, piggybacking on the natural gas industry to export hydrogen.

Green Hydrogen can also be a game changer. We believe all of this will depend heavily on the use of carbon capture, utilization and storage (CCUS) in its early stages to reduce greenhouse gas emissions and aim for Africa’s net-zero goals. Hydrogen and more importantly green hydrogen gives Africa an exciting new tool to build a stronger, more reliable low-emission energy future. Our continent is uniquely positioned to become a dominant global player in this burgeoning new technology.

While the world undergoes a massive overhaul of its energy resources and transitions towards renewables, Africa is well-positioned to exploit its own resources and take significant steps in its journey towards a green energy future, while scaling up project developments and alleviating energy poverty,” stated NJ Ayuk, Executive Chairman of the African Energy Chamber, adding that, “The African Green Dialogue will push our goal, which is to highlight that Africa has the best solutions to its problems; that Africa will alleviate energy poverty on its own terms by the means best aligned with the continent’s strengths. We must embrace all forms of energy, reduce GHG and also think about jobs and opportunities for our young people.”The Green Energy Dialogue represents the progress made by Africa in its journey towards a just and inclusive transition while creating and promoting new opportunities for discussions that pave the way for accelerated investment and development across the green energy space in Africa.While Africa undergoes energy transition, such an initiative is expected to play a significant role for the continent to exploit its natural resources while opening up new job opportunities, addressing energy poverty, and driving the continent’s shift towards renewables through an integrated and inclusive approach.

By providing stakeholders with a year to engage, network, and propose a viable way forward for the sector, the African Green Dialogue will facilitate an inclusive platform to provide stimulating conversations to discuss the value of collaboration and future opportunities.

AEW 2022, taking place on October 31 – November 4, is the AEC’s annual conference, exhibition and networking event. AEW 2022 unites African energy stakeholders with investors and international partners to drive industry growth and development and promote Africa as the destination for energy investments.