Green Hydrogen from Africa: High Costs and Political Risks Loom
Don't bet on cheap green hydrogen from Africa just yet.
Africa's green hydrogen production could face a price increase
There's a dream in Europe: exporting green hydrogen from Africa to meet their energy needs. The continent boasts ample space, wind, and solar power - all the ingredients for large-scale hydrogen production. But can we succeed? Recent research, however, pours cold water on these hopes.
Researchers from the Technical University of Munich, the University of Oxford, and ETH Zurich crunched the numbers, considering various risk factors for hydrogen production in African countries. Their conclusion is stark: it's going to be costly, very costly.
Their model took into account factors specific to the continent, such as transport and storage options, legal and political stability, and financing costs - elements that significantly impact the feasibility of hydrogen projects. "Most calculations assume average financing costs, but each country presents different investment risks, particularly for many African countries," explained Florian Egli of TUM.
The High Price Tag
The researchers calculated that, under the best scenarios, African states would struggle to compete with other regions. Green hydrogen export costs could range from nearly five euros to around three euros per kilogram. However, even with political backing, prices could still be prohibitive, edging closer to European market prices but never quite matching them.
A Race Against Time
Is it impossible? Not at all. With European guarantees ensuring the purchase of a certain amount of green hydrogen, and financial backstops from institutions like the World Bank, it could be less expensive in the long run. But fellow researcher Stephanie Hirmer from the University of Oxford cautions, "African green hydrogen exports for Europe are substantially more expensive than previously thought. Socio-political risks have not been sufficiently considered in past calculations."
Out of thousands of potential locations in Africa, only around 200 are viable for mass production, with competition coming from established industries in other parts of the world. It's a race against time: if we don't act quickly, instability or insecurity could make these locations unsuitable, reducing the potential pool even further.
Overcoming the Challenges
The challenges ahead are formidable - political instability, legal and economic uncertainties, and high production costs. Nevertheless, innovative approaches and partnerships are being explored to transform green hydrogen production into a viable and sustainable solution for energy security and economic development across Africa.
Sent spotlighting the research:
Sources
- ntv.de
- kst
- researchgate.net
- energy.gov
- werkstatt.bundestag.de
- A key aspect for successful green hydrogen production in Africa is the collaboration between industries, focusing on innovative technologies. * The research by experts from Technical University of Munich, University of Oxford, and ETH Zurich highlights this approach, aiming to make green hydrogen production more feasible and sustainable in Africa, particularly by addressing financial, political, and energy aspects.
