Hydrogen, the future of energy in Africa.
With rapidly evolving hydrogen technology and ever-lower fuel cell costs, green hydrogen is becoming a very attractive alternative to conventional fuel for Africa.
green hydrogen
Green hydrogen will be one of the biggest economic opportunities in the near future. Driven by international actions to combat climate change, it has the potential to revolutionize numerous value chains in the energy sector and in the mobility and industry sectors.
For Europe, the lack of renewable energy production capacity will be an obstacle to the economy and, therefore, the search for viable locations for its production is fundamental. Pilot projects started in Chile and the Middle East, but the biggest opportunities are in Africa.
Backed by Africa's extensive renewable energy resources, the International Renewable Energy Agency (IRENA), estimates that energy production capacity could reach 310 GW by 2030.
The hope is that green hydrogen project developments will not only meet the continent's energy demand, increasing security for domestic energy independence, but also provide an environmentally sustainable fuel alternative for the outdoors in the years to come.
The “Hydrogen Valley” of South Africa
In South Africa, the government is trying to combine the synergies between platinum mines, renewable energy and hydrogen production to form a hydrogen generation hub.
Platinum is a key component in the electrolysis of the Polymer Electrolytic Membrane (PEM) used in fuel cells and also essential to produce hydrogen on an industrial scale.
The intention is that, similarly to what the “Silicon Valley” did in the United States, to boost computer technology, the “Hydrogen Valley” serves as an industrial “cluster” in South Africa, bringing together various hydrogen applications in the country. to form an integrated hydrogen ecosystem, driving green hydrogen research and production.
The initiative is part of the work being done to support the implementation of the “National Hydrogen Society Roadmap”, recently approved by the South African Council of Ministers, as well as phase 3 of the National Hydrogen Society Roadmap. Reconstruction and Economic Recovery of the country.
During the launch of the project, the Director General of the Department of Science and Innovation in South Africa, Dr. Phil Mjwara said that:
“The establishment of the 'Hydrogen Valley' is an important national initiative. The implementation of phase 3 of the Economic Reconstruction and Recovery Plan is driven by the core elements of rebuilding and transforming”.
“This implies building a sustainable, resilient and inclusive economy”, he concluded.
The South African “Hydrogen Valley” is therefore seen as an opportunity with great potential to unlock growth, revitalize the industrial sector and position South Africa as an economic green hydrogen exporter to the world.
The plan for the “Hydrogen Valley” location will begin near Mokopane in Limpopo, where platinum group metals (PGMs) are mined, extending along the industrial and commercial corridor to Johannesburg and ending in Durban.
“Hydrogen Valley” will be used to establish, accelerate and incorporate niche innovations through upscaling and replication. Hydrogen and fuel cell technologies offer an alternative source of clean electricity, as hydrogen allows “fuel” to be stored and delivered in usable form, much like gasoline is today.
The feasibility study, carried out by the company Engie, identifies nine hydrogen-related projects in the mobility, industry and construction sectors that can be used as a springboard for the establishment of the “Hydrogen Valley”.
A project that will focus on converting heavy-duty diesel-powered trucks into fuel cell-powered trucks, which will support the increased consumption of hydrogen in the transport sector.
The projects will also facilitate the commercialization of publicly funded intellectual property while contributing to the development of PGMs (Platinum Group Metals) in specific geographic areas.
The use of hydrogen as an energy carrier could potentially reduce South Africa's dependence on the fossil fuels that cause global warming, reducing the country's dependence on imported oil, benefiting the rest of the continent as well.
Namibia's hydrogen hub
In Namibia, an ambitious project to produce 300.000 tonnes of green hydrogen per year is also being formed. The Namibian government has appointed Hyphen Hydrogen Energy to develop the first large-scale, vertically integrated green hydrogen project in the Tsau ǁKhaeb national park.
The project, valued at $9,4 billion, will produce pure green hydrogen or in a derivative form, such as green ammonia. According to Hyphen CEO Marco Raffinetti:
“The first phase, which is expected to go into production in 2026, will see the creation of 2 GW of renewable electricity generating capacity to produce green hydrogen for conversion to green ammonia, at an estimated cost of US$4,4 billion.”
“Further expansion phases in the late 2020s will allow to expand the combined renewable generation capacity to 5GW and 3GW of electrolyser capacity, increasing the total combined investment to 9,4 billion.”
Once fully developed, the project will give Namibia a major boost in terms of foreign direct investment and job creation. The $9,4 billion investment is the same order of magnitude as the country's current GDP and will see 15.000 direct jobs created during the four years of construction for both phases.
It is anticipated that a further 3.000 jobs will be created in terms of permanence during the operational phase. More than 90% 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.
Hyphen CEO Marco Raffinetti said:
“Tsau ǁKhaeb National Park ranks among the top five locations in the world for low-cost hydrogen production, benefiting from a combination of near-sea land-based wind and solar resources and land-to-market export routes.”
Conclusion
Namibia's world-class natural resources, combined with a progressive, pro-investment and visionary government under the leadership of President Hage Geingob, have allowed the country to move with incredible speed to position itself as the vanguard of Africa's ambitions to enter the world. green hydrogen.
On the other hand, South Africa, with the project to implement the “Hydrogen Valley”, is at the forefront of production and innovation in relation to green hydrogen.
This collective deep technical expertise across the entire green hydrogen value chain of these two African countries, combined with the financial strength and experience in development, fundraising and implementation of infrastructure projects, will be crucial to successfully create a project. of this magnitude and complexity.
What do you think green hydrogen is the future of energy? Do you agree that this positioning of South Africa and Namibia will put Southern Africa at the forefront of green energy? We want to know your opinion, do not hesitate to comment and if you liked the article, share and give a “like/like”.
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