International Government Hydrogen Updates: Africa

By Nova Thayer

Hydrogen development and usage in Africa is currently poised for a revolution, as multiple countries across the continent begin to utilize clean hydrogen and visualize it being a major part of the future energy economy. This is especially true in Northern and Southern Africa, where several nations have recognized that global demand for clean hydrogen will make it a valuable commodity and a clean fuel for local industries. With the potential for abundant solar electricity generation across much of the continent, Africa is poised to become a major clean hydrogen hub in the future.

African countries across the continent have banded together to create regional organizations dedicated to promoting clean hydrogen, such as the Africa Green Hydrogen Alliance or the African Hydrogen Partnership Trade Association. The African Green Hydrogen Alliance is more focused on country agreements, and the African Hydrogen Partnership Trade Association is more focused on companies working together, including FCHEA member GenCell Energy, but they have the same overall goal, support hydrogen production to decarbonize the world and promote local economic growth and opportunities across the African continent. The production potential for clean hydrogen in Africa was a central topic at the COP26 summit in 2021, and the 2022 COP27 summit will be held in Egypt, giving further opportunities to highlight the continent’s strengths in hydrogen.

Crucially, the European Union and its member nations are also supporting the development of the African hydrogen economy. Many EU member nations have signed agreements across Africa and begun investing in projects that could produce large of amounts of green hydrogen that the EU will need to completely decarbonize. Germany is the most invested in this process due to its need to import hydrogen to decarbonize, and the German government and German companies have signed agreements with all the countries on this list. The EU’s investment will help the region’s hydrogen economy develop quickly and allow access to the massive renewable energy potential in the region.

A graphic highlighting the costs of producing hydrogen. As expected, North and South Africa, with abundant solar and wind have ideal conditions for producing a lot of hydrogen. (Source: International Energy Agency)

Morocco

The Moroccan government has heavily invested in renewable energy, starting in 2009 with a push for solar energy. This focus has continued over the last decade, and now the country is looking to take advantage of its renewable energy to produce large amounts of clean hydrogen. To aid in this goal, the government recently released a roadmap dedicated to expanding hydrogen production. The plan notes that demand will rise significantly, and the government expects export demand of clean hydrogen to rise faster than the national demand at least initially. The government seeks to use the profits gained from external demand to encourage the use of hydrogen in local industries.

Morocco also has the potential to utilize clean hydrogen to produce ammonia. The country has the largest phosphate deposits in the world, a crucial ingredient in fertilizers. By utilizing hydrogen, which could be converted into ammonia, the country could significantly expand the local fertilizer industry and reduce carbon emissions at the same time. The Moroccan government has begun to study the specific steps that will need to be taken to jumpstart its hydrogen economy, and has signed several agreements with other countries and companies in order to accomplish this goal.

It's clear that the country seeks to position itself as both a hydrogen export hub for Europe and develop its economy at the same time. With time, it’s likely that Morocco will be a world-leading producer of clean hydrogen, and a world-leading producer of manufactured fertilizers.

Algeria

Algeria is another North African government that has begun to realize the potential of hydrogen to decarbonize its own industry and position it as an export hub. The government has begun work on a national hydrogen development strategy and has signed agreements with regional gas companies and other countries to work on hydrogen pilot projects. Based on the massive solar availability and the existing gas and power networks, the country expects to be able to meet the local and regional demand for hydrogen and hopes to become a strategic port in the developing hydrogen economy.

Tunisia

Tunisia is also looking to become a regional clean hydrogen hub. The government is in talks with several European countries and has signed an agreement with Germany to develop the hydrogen industry via German grants. Tunisia is the central point in the Mediterranean and offers huge potential for green electricity, hydrogen and ammonia for its own domestic needs and for export between Africa and Europe. The presence of a pipeline extending from Tunisia to Italy is ideal for leveraging electrolysis platforms to produce low-to-zero carbon hydrogen and transport it to Europe. FCHEA member FuelCell Energy recently announced a collaboration with green hydrogen developer TuNur which will increase the clean fuel’s production for Europe and North Africa.  The government is also working to increase renewable energy, a strategy that reduces carbon emissions and increases the amount of potential hydrogen production available in the region.

Egypt

Egypt has begun to make major investments in hydrogen production and developments as well. The government recently announced $40 billion in funding for various clean hydrogen projects. A dedicated hydrogen roadmap plan is expected to be released later in 2022 with more specifics on the projects that will be funded. The country has entered into several agreements to start feasibility studies with hydrogen and ammonia producers, and the government has signaled that it intends to support renewable hydrogen projects.

For example, Masdar, a United Arab Emirates (UAE) clean energy company has signed an agreement with Hassan Allam Utilities, a Egyptian utility company, in order to develop several clean hydrogen projects. The government and Egyptian utility companies have also signed agreements with energy companies like Siemens, Norwegian energy firms and others.

FCHEA member Plug Power’s electrolyzers were recently selected by Fertiglobe, a Mideast fertilizer firm, to be used in an Egyptian ammonia production plant. The 100-megawatt electrolyzer will be used to produce clean hydrogen, which will then be used as a feedstock for up to 90,000 tonnes of ammonia production per year. The plant is looking to begin production in 2024, where it will be essential for Egypt’s strategy to become a clean hydrogen hub.

In addition to exporting the hydrogen, the Egyptian government has begun to encourage the use of hydrogen across the country, such as in railway systems or by using it to fuel clean industrial production of iron and steel. It’s clear that the Egyptian government views clean hydrogen as a valuable tool to meet its goal of reducing carbon emissions, so local projects utilizing hydrogen as fuel will continue to appear and expand as time goes on.

Namibia

Namibia is another example of how geographic location can significantly affect hydrogen production potential. The nation has massive solar potential, and the government is looking to significantly expand renewable and hydrogen production. The government has heavily focused on international support and companies to develop projects, including a large showing at Davos in 2022.

There are several promising projects in the works, including a $10 billion hydrogen project that is being constructed by Hyphen Hydrogen Energy, a multi-company clean hydrogen consortium. The project is expected to begin construction in 2025 while aiming to compete the first stage of production by the end of 2026. The company hopes to produce 300,000 tons of clean hydrogen production per year once the project is completed in 2028. Namibia has also begun developing feasibility reports for several regions in the south of the country, seeking to see how much renewable energy and hydrogen could be produced.

The Namibian government is seeking to utilize the hydrogen produced by the plant, and in additional to direct hydrogen usage will levy concession fees, royalties, sovereign wealth fund contributions, environmental levies, and taxes to ensure that the plant encourages local development. Because the Namibian GDP is approximately $10.7 billion, almost the same cost to create the project, the revenue gained from this plant has the potential to significantly help the country. Consistent revenue can be used to support local jobs, regional development, electrification, and help promote new industrial projects across the country.

South Africa

South Africa has taken significant steps to utilize hydrogen in its economy and promote the production of clean hydrogen. The South African government recently released its Hydrogen Society Roadmap, which is comprehensive and sets several targets to improve hydrogen production. There are many different goals discussed in the roadmap, but some of the more important policies include supporting hydrogen production projects and industrial clusters, expanding hydrogen research opportunities, and bringing together the partnerships necessary to build a hydrogen economy.

There are several specific projects that show promise for hydrogen usage in South Africa. The government has partnered with several different companies, including Anglo American and ENGIE to create a hydrogen valley feasibility study. The nation looks to produce a hydrogen hub in the industrial regions of Limpopo region, and then link it to the port town of Durban. The large demand for shipping goods from the factories and mines to the port will make it a natural hydrogen corridor for large-scale transport. The plan also calls for expanding hydrogen production in the Boegoebaai port, including electrolyzer manufacturers, ammonia production plants, and all the necessary facilities needed for large-scale hydrogen production.

South Africa is also home to Anglo American, Ballard, and ENGIE’s efforts to decarbonize mining equipment and the companies are currently testing the first hydrogen-run large hauling and mining vehicle. Hydrogen fueled heavy industrial equipment will continue to grow across the country’s mining industry as the local hydrogen network expands.

An overview of how hydrogen could be utilized across the South Africa. By producing it in the solar rich west and shipping it to the industrial regions in the east, hydrogen could produce significant economic opportunities. (Source: South Africa’s Hydrogen Society Roadmap)

The government has also begun research into utilizing hydrogen in aviation fuels and producing products such as fertilizers using gas pollutants and hydrogen. The government has talked about the need to mitigate risk via public funding opportunities and by organizing hydrogen communities that can help support long-term projects via financing. It’s clear from the extensive research and numerous projects across South Africa that the government views hydrogen as essential for its long-term development.

Conclusion

It’s clear that the world is realizing the potential of hydrogen energy, and Africa is no exception. Many countries seek to take advantage of the large-scale wind and solar potential across the region to produce cheap renewable energy. That energy can then be used to produce hydrogen for local use, or exported abroad, where there is significant demand for clean hydrogen. Many African government see hydrogen as a valuable commodity that can significantly help development and local economic growth in the region. Decarbonizing the world will require a lot of hydrogen, and luckily many African countries are stepping up to meet the demand, both locally and abroad.