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Africa Hydrogen Opportunity
Africa Hydrogen Opportunity
Africa enjoys world-class renewable resources, with capacity factors up to 69% for wind power and 25% for solar power, as well as excellent geothermal and hydro resources, coupled with abundant land area. Consequently, the continent is strongly positioned to become a renewable hydrogen and derivatives producer and exporter.
Using these renewable resources to produce hydrogen for both the domestic market and export (either as pure hydrogen or as derivatives – ammonia, synfuel, hot briquetted iron, and others) could create a win[1]win opportunity for all stakeholders. Europe and parts of Asia are expected to require significant imports of renewable hydrogen and its derivatives by 2050.
With the right enabling conditions and if African countries can capture 15% of the expected globally traded hydrogen volume, renewable hydrogen production for export could grow from 1 million tonnes per annum (Mtpa) in 2030 to 11 Mtpa in 2050. Renewable hydrogen production could mobilize a cumulative investment of USD 400 billion.
This would increase African export value by USD 15 billion in 2050 and create a cumulative 13 million job-years by 2050, and could also enable the faster deployment of renewable power for domestic use at lower costs.
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