Introduction
The 2024 Africa Summit, organized by the Financial Times, took place in London from October 29th to 30th, 2024. The summit featured panel discussions of important topics and a host of interviews with keynote individuals around Africa.
During the second day of the summit, an important panel discussion saw Jonas Moberg; CEO of Green Hydrogen Organization, Mohammed Ismail Mansour; Chairman of Infinity Power, and Holger Rothenbuch, Managing Director and Head of Infrastructure and Climate, British International Investment take the center stage to discuss how Africa can become a global hub for Green Hydrogen and the challenges the continent faces. This panel discussion was moderated by Lee Harris of the Financial Times.
Before we can get into all that, let’s briefly get to know what Green Hydrogen is.
Green Hydrogen is produced by the electrolysis of water using renewable energy. Green Hydrogen can replace fossil fuels because it’s clean and sustainable. There are no harmful emissions from the production of Green Hydrogen only water. It’s produced by splitting water molecules into hydrogen and oxygen using renewable energy sources like wind or solar power in a process called electrolysis.
Mohammed Mansour highlighted the fact that Egypt has been able to be strategic in terms of generating cheaper power for the African continent where the demand is in Europe. He went on to say that Egypt has funded a lot of green hydrogen projects which require over 130 gigawatts of energy. The price of electrolysis has been costly which has been a struggle for them when it comes to securing a long-term PPA from the offset.
Jonas of Green Hydrogen Organization added, “The customers are not quite there when it comes to understanding the process of Green Hydrogen.” They also struggle to see large-scale renewable projects, green hydrogen, and green ammonia take off when competing with more extensive emissions like fossil fuels.
“Many governments, Europeans, the Americans, and so on have tried to make the numbers work but it’s not enough. In Africa, our organization, Africa Green Hydrogen Alliance, has seen an alliance of 11 governments working together to host these very large renewable energy and green hydrogen ammonia projects. There are additional costs because of the high risk premium and a lot of efforts need to go in, in terms of structural de-risking to make it commercially viable” Jonas said.
Holger of BII talked about the mobile projections to the medium to the longer terms in the sector. He said, “Working with developmental organizations, you have to be optimistic by default in regards to what the challenges are, hence their contribution to the sector. The economics does make sense at this point. We have to believe the gap in the cost of green hydrogen will close over time. Because technology prices are coming down and renewable energy is reducing. That’s why organizations like ours are making sure we are providing funding to tap into this industry.”
The US is leading when it comes to Green Hydrogen projects which makes it difficult for subsidiaries coming from African countries like Egypt, South Africa, Uganda, and others to cut profits.
Again, one of the challenges that was highlighted during the panel discussion was securing government permits to undertake Green Hydrogen projects in these African countries.
Green Hydrogen projects take money to undertake. It’s no small feat when undertaking such ammonia projects.
Opportunities that come with Green Hydrogen projects are limitless. The fact that the by-product is water can be channelled into different sectors of the continent.
African countries like Egypt, South Africa, Uganda, and other Northern African countries are leading the charge when it comes to Green Hydrogen in Africa. Africa is gradually getting there.
Chief Editor: Marian Gloria Gyamfi, Ghana
Please contact us at seminar@rightforeducation.org/ marian@rightforeducation.org , if you want to get involved.
