Cape Town - Green hydrogen (GH2) has been increasingly hailed as a critical component in South Africa and global transitions towards net-zero energy systems with pressure mounting for countries to accelerate their “just transitions” and pathways towards low-carbon and climate resilient societies.
A recent study by the European Investment Bank (EIB), International Solar Alliance and the AU, with research and analysis by Corporate Value Associates (CVA), has found that $1.1 trillion (about R17.1 trillion) GH2 investment could deliver the equivalent of more than one third of Africa’s current energy consumption, boost GDP, improve clean water supply and empower communities.
The study highlights the benefits of harnessing solar power to create GH2 hubs in Morocco-Mauritania, southern Africa and Egypt with an analysis of investment opportunities and a roadmap of technical, environmental and financial solutions.
The EIB said the study confirmed this was economically viable and could be produced at less than €2 a kilogramme – cheaper than traditional fossil fuel energy for both local energy demand and global GH2 exports.
“Harnessing Africa’s solar energy to produce 50 million tons of green hydrogen a year by 2035 can help secure global energy supply, create jobs, decarbonise heavy industry, enhance global competitiveness and transform access to clean water and sustainable energy,” the EIB said.
The study, “Africa’s Extraordinary Green Hydrogen Potential”, represents the first detailed research of the feasible development of GH2, using solar power, across the continent and highlighted that scaling up GH2 production would bring low-cost electricity and clean water.
EIB vice-president Ambroise Fayolle said: “Africa has the best renewable energy in the world and scaling up production of green hydrogen can transform access to low-cost electricity and clean water.”
This comes after numerous new GH2 projects and partnerships were announced and kick-started at the first Green Hydrogen Summit in Cape Town in November, where South Africa positioned itself as a central GH2 hub in hopes of linking its mineral endowments with its renewable energy endowments to drive industrialisation and support a just transition from fossil fuels.
At the summit, President Cyril Ramaphosa said: “South Africa has existing and future potential to produce green hydrogen.
“It is estimated that South Africa has the potential to produce 6 to 13 million tons of green hydrogen and derivatives a year by 2050. To do so would require between 140 and 300 gigawatts of renewable energy.”
The study was previewed at the Mauritania Pavilion at COP 27 in Sharm el-Sheikh.