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Africa's pivotal role in the emerging global hydrogen revolution
President William Ruto signs the launch of the green Hydrogen strategy and road map for Kenya at Kenyatta International Convention Centre on September 5, 2023, during the Africa climate summit. PHOTO | SILA KIPLAGAT | NMG
What you need to know:
- With over 90 per cent of its electricity derived from renewable sources such as geothermal, hydro, wind, and solar, Kenya is well-positioned to harness this energy surplus to produce green hydrogen.
As the world shifts toward clean energy to combat climate change, green hydrogen, a cleaner and more sustainable alternative to fossil fuel-based energy, has emerged as a game-changer; and Africa is poised to lead this revolution.
Hydrogen, a versatile energy carrier, is the most abundant element in the universe. Grey hydrogen, the conventional form, is produced mainly through steam methane reforming of natural gas, a process that emits substantial amounts of carbon dioxide. In contrast, green hydrogen is generated by splitting water molecules into hydrogen and oxygen using electricity from renewable sources such as solar, wind, geothermal, or hydropower. This method results in virtually zero carbon emissions, making green hydrogen a critical component in efforts to decarbonise industries and energy systems worldwide.
Africa's involvement in the hydrogen revolution is no longer theoretical. Abundant solar, wind, and hydropower resources uniquely position many African countries to become major producers and exporters of green hydrogen and its derivatives. These include ammonia and methanol, which are vital for fertiliser, energy storage, and clean industrial production.
Not to be left behind, Kenya launched its Green Hydrogen Strategy and Roadmap in September 2023 during the Africa Climate Summit held in Nairobi. The strategy features import substitution, food security, green industrialisation, and attracting investment. With over 90 per cent of its electricity derived from renewable sources such as geothermal, hydro, wind, and solar, Kenya is well-positioned to harness this energy surplus to produce green hydrogen.
Produce locally
A central thrust of Kenya's strategy is to reduce reliance on imported nitrogen-based fertilisers and chemicals by producing them locally through green hydrogen. This is expected to save on foreign exchange and strengthen national food security through a stable and climate-friendly supply of agricultural inputs. Given that agriculture contributes approximately a third of Kenya's GDP directly and nearly as much indirectly, success in green hydrogen-based agricultural products will be a win.
The government aims to achieve 20 per cent import substitution for nitrogen fertilisers by 2027 and 50 per cent by 2032. To achieve this, dedicated renewable energy capacity for green hydrogen production is set to expand from 150 megawatts between 2023 and 2027 to 450 megawatts by 2032. Electrolyzer capacity, critical for water-splitting, will also scale from 100 megawatts to as much as 250 megawatts within the same period.
The country also established a Green Hydrogen Coordination Committee and is in the process of setting up a dedicated secretariat. Between now and 2026, the government will focus on extensive stakeholder engagement and training, aimed at developing a regulatory and operational framework.
Sh500 billion deal
After signing a Sh500 billion deal with the UK to fast-track green investments in 2022, President William Ruto said it aims to produce 30GW of green hydrogen. If realised, this would put the country among the top global players in green hydrogen production and export. It would be equivalent to thrice the UK's overall low-carbon hydrogen production target of 10GW for 2030. However, President Ruto did not specify a timeline for the plans or how many sites the hydrogen may be produced at.
Elsewhere on the continent, countries like Namibia, South Africa, Morocco, and Nigeria are advancing their own green hydrogen agendas. Namibia hosts one of the continent's most ambitious projects aimed at generating two gigawatts of renewable electricity for domestic and export-oriented hydrogen production. South Africa's pipeline of green hydrogen projects aims to revitalise its industrial sector and create new economic opportunities. Morocco’s vast solar fields and Nigeria’s natural gas infrastructure are also positioning them as hydrogen hubs.
However, several hurdles remain. Chief among them is the high cost of producing green hydrogen compared to fossil fuel-based alternatives. Although costs are falling, they are not yet competitive without subsidies or carbon pricing mechanisms. Infrastructure also poses a challenge since hydrogen needs specialised pipelines, storage facilities, and transport solutions. Supportive policy and regulatory environments are still under development in many African nations, which may deter investors.
Still, the opportunities are equally compelling. Green hydrogen projects can attract foreign direct investment, create skilled jobs, and diversify economies away from fossil fuels. International partnerships are proving crucial. They bring in capital and technical expertise with market access, accelerating project viability and scalability.
Globally, the green hydrogen revolution is gaining pace. Countries like Germany, Japan, and South Korea are investing heavily in importing green hydrogen to decarbonise their industries. This creates a significant export opportunity for African producers. With strategic foresight and coordinated efforts, Africa could supply a substantial portion of the world’s green hydrogen needs, transforming its energy landscape in the process.
