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Released June 24, 2024 | NEW DELHI
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Researched by Industrial Info Resources (Sugar Land, Texas)--As the world moves toward decarbonization, Africa, home to some of the world's largest untapped solar and wind resources (especially in Egypt and South Africa), is projected to become a leading producer of green hydrogen.
Green hydrogen is obtained by splitting water into oxygen and hydrogen using renewable energy. According to the International Renewable Energy Agency (IRENA), green hydrogen is likely to play a crucial role in achieving the 1.5°C climate goal and facilitating energy transition by 2050.
Africa's geographical setting enables easy access to markets in Asia and Europe, regions expected to see a spike in green hydrogen imports in coming years. The European Investment Bank (EIB) projects that Africa's cost competitive green hydrogen production can reach over 50 million tons per year to help the domestic economy grow, meet the local demand, and export to major international off-takers (like Greece, Calabria, Spain, Japan, and India). The production is likely to become economically viable at only $2.14/kilogram (kg), positioning green hydrogen as a competitor with global oil prices, which currently hover around $0.71/kg.
Industrial Info is tracking 57 active capital-spending projects worth more than US$59 billion geared at green hydrogen production in Africa. About 92% of the spending is inclined toward grassroot developments while 8% is focused at unit additions. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Industry Project Database can click here for a list of detailed project reports.
By country, the maximum spending is being driven by Egypt (US$18 billion), Mauritania (US$11 billion) and Djibouti (US$10 billion). Some of the other countries driving potential investments include South Africa, Morocco, Namibia, Kenya and Tunisia.
The key players in the market are CWP Global (Sydney, Australia), Ministry of Petroleum Mines and Energy (Nouakchott, Mauritania), and Sasol Limited (NYSE:SSL) (Sandton, South Africa). The Ministry of Petroleum Mines and Energy plans to add units to its green hydrogen production plant in Nouakchott (Trarza, Mauritania) to produce approximately 819,320,000 cubic feet of green hydrogen per day by using solar and wind power. Subscribers can click here for the project report.
Although Africa is a low-cost provider of primary resources, uneven allocation across various regions of the continent poses a significant hurdle. For instance, there is a lack of infrastructure with parts of Africa, ideal for renewable energy generation, left underdeveloped. Transmission and storage infrastructure also calls for improvements to ensure optimum connectivity between renewable energy resources, production facilities and export ports.
Addressing these challenges, various countries are coming up with initiatives to support the development of the domestic green hydrogen market in Africa. It remains to be seen how effectively these factors contribute in stimulating investment, fostering technological innovation, and driving sustainable economic growth across the continent.
Subscribers can click here for the project report mentioned in this article and click here for the related plant profile.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
Green hydrogen is obtained by splitting water into oxygen and hydrogen using renewable energy. According to the International Renewable Energy Agency (IRENA), green hydrogen is likely to play a crucial role in achieving the 1.5°C climate goal and facilitating energy transition by 2050.
Africa's geographical setting enables easy access to markets in Asia and Europe, regions expected to see a spike in green hydrogen imports in coming years. The European Investment Bank (EIB) projects that Africa's cost competitive green hydrogen production can reach over 50 million tons per year to help the domestic economy grow, meet the local demand, and export to major international off-takers (like Greece, Calabria, Spain, Japan, and India). The production is likely to become economically viable at only $2.14/kilogram (kg), positioning green hydrogen as a competitor with global oil prices, which currently hover around $0.71/kg.
Industrial Info is tracking 57 active capital-spending projects worth more than US$59 billion geared at green hydrogen production in Africa. About 92% of the spending is inclined toward grassroot developments while 8% is focused at unit additions. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Industry Project Database can click here for a list of detailed project reports.
By country, the maximum spending is being driven by Egypt (US$18 billion), Mauritania (US$11 billion) and Djibouti (US$10 billion). Some of the other countries driving potential investments include South Africa, Morocco, Namibia, Kenya and Tunisia.
The key players in the market are CWP Global (Sydney, Australia), Ministry of Petroleum Mines and Energy (Nouakchott, Mauritania), and Sasol Limited (NYSE:SSL) (Sandton, South Africa). The Ministry of Petroleum Mines and Energy plans to add units to its green hydrogen production plant in Nouakchott (Trarza, Mauritania) to produce approximately 819,320,000 cubic feet of green hydrogen per day by using solar and wind power. Subscribers can click here for the project report.
Although Africa is a low-cost provider of primary resources, uneven allocation across various regions of the continent poses a significant hurdle. For instance, there is a lack of infrastructure with parts of Africa, ideal for renewable energy generation, left underdeveloped. Transmission and storage infrastructure also calls for improvements to ensure optimum connectivity between renewable energy resources, production facilities and export ports.
Addressing these challenges, various countries are coming up with initiatives to support the development of the domestic green hydrogen market in Africa. It remains to be seen how effectively these factors contribute in stimulating investment, fostering technological innovation, and driving sustainable economic growth across the continent.
Subscribers can click here for the project report mentioned in this article and click here for the related plant profile.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
