Global Finance Forum, Hydrogen Africa

Paris this week for the Hydrogen Africa global finance forum. These events are a chance for the continent of Africa to be aware of cutting edge, leading thoughts around the hydrogen renewable sector within Europe for chance for them to engage, to learn to be in front of global investors to learn what they want and be state of the art rather than trailing others.

Some African stakeholders with major projects to share had problems with visas and, as one commentator pithily observed, those that needed it most whether denied the chance to learn and engage.

Jorgo Chatzimarkakis helped get the forum underway with his rousing response to questions from the floor ensuring this would be an intense and immersive day.

The palatial surroundings at the hotel ambassador on the splendid Boulevard Haussmann stands at the very top end of elegance and luxury. It was humbling to think of the contrast to some of the grinding poverty encountered during my time in Africa in September.

This theme, of contrasts, was reflected in a session I moderated as Arup’s Nick Ash spoke of the need to develop hydrogen economy with social justice and benefits for disadvantaged groups and those seeking a better future as opposed to benefiting a detached elite.

Nevertheless, the conference itself was vibrant. It was the third of these events shared with the community and it started around a year or so ago also in Paris with the Namibians who had good news to share on a project to high fund this week, and then followed up with an event in the financial heart of southern Africa. Something which again, were shared with stakeholders enabled Sub Saharan stakeholders to get in front of those who repeatedly assures that the money is there.

They seek robust well-run projects in which to invest. It was an intense day for me that I was moderating and took part in a number of high-level discussions, and it was also an opportunity to go a little bit deeper than that it's sometimes the case at these events and work out to some of the realities, particularly with regard to Africa.

The mining sector underpinning significant growth in southern Africa which many other countries might be envious, of, particularly around platinum, and Iridium the lead is substantial. It was explained by the bankers why to some extent Africa is regarded as a risky investment for political and other reasons.

This factor, the cost of finance, feeds through to projects that with a magnifier effect that means that sometimes the African projects are pushed into the high risk – high reward category, against competitors with a higher credit ratings.  Financiers’ stressed the need for robust business cases – and that projects are well governed and follow best practice.

This theme, of good governance, providing certainty of investment influences sectoral tectonics with smart JV partnerships at an early stage.

A number of excellent stakeholder masterclasses and insights, especially the banking panels which were insightful and gave a heads up as to the realisation that banks realise that they too, have responsibilities of wider responsibilities, a lot of discussions around the future mission and roles of the World Bank, the European Investment Bank and other key stakeholders to enable sectoral progress.

From African developers’, there’s a realisation that they have the resources to an extent the entrepreneurial abilities to make this happen. And that says that rather than wait for second or third generation technologies, they can by being present at events like this, be aware of best practice and go right to the best right from the outset.

Projects range you from the community level to the Giga projects were discussed, with the realisation that hosting oil and gas industry assets hasn't always benefited the wider community and that the transition when it happens, though, is happening is indeed just one which benefits all not just a select few has may have happened in the past.

Interestingly, several delegates sought me, with my British accent to complain about the EU mindset and the possible over regulation of the sector. There's a feeling that by endless regulations and micro regulations that firstly, they had the unintended consequences, at least three of hourly rate proving green credentials which is sometimes difficult to justify if batteries and other technologies are being brought in, but that's the regulation and bureaucratic mindsets of, of the EU sometimes can drive away entrepreneurship, and indeed African investment and slightly surprisingly, that the UK might have done the right thing and walking away from such a high bound and top down institution.

More detailed technical deep-dives provided insight into the realities of major project developments such as the lead in times of balance of plants which may centre around the compression equipment as much as the water splitting electrolysers.

It’s often difficult, especially an early stage of a project to define such elements which may be dependent on the type of type of electrolyser chosen so with a degree of oversizing and mis sizing may occur. There were my comments that we can learn a lot from oil and gas regarding testing due diligence and equipment required rather than thinking that just because something out there, we can put it together with something else. It's also out there, but there may be a mismatch, especially with different standards and measurements around the globe.

The usual conference call for global standards to use these in these events. A couple of other insights, which were good news regarding noble metal requirements.

Detractors often point out limits to availabilities but sometimes fail to account for innovation and how amounts required are perhaps a third of some of the figures in the public domain.

This is positive news for mineral rich continent such as Africa, which certainly in the south that contains many of the resources acquired by the green hydrogen economy leading, well placed to be a partner rather than passive recipient, as has been the case in the past.

The next African green hydrogen investors forum is on home turf in the City of London, a chance to bring together some of the city stakeholders. I've shared some of this dialogue with the community, bringing African stakeholders to another heart of the global financial community across from Paris this time to London with again, a slightly different global perspective, but with plenty of attitude and aptitude from the UK is delivery of the successful oil and gas sector, which doubted of in the 1970s.

Last year we learned of Hyphen and that project is moving forwards. Also hot off the press is Neom, involving 24 banks, reaching the Financial Investment Decision milestone.  Giga projects are happening.

Africa is here; she's got a voice the resources there and with guidance direct from the heart of the banking and those with a history of successful project delivery can flourish. Stay informed: 

Hydrogen Africa