Africa could capture as much as 10 percent of the global green hydrogen market, helping to create up to 3.7 million jobs and adding as much as US$120 billion to the continent’s gross domestic product (GDP).
Africa’s plentiful solar and wind resources could be leveraged to produce 30 to 60 million tonnes per annum (mtpa) of green hydrogen by 2050, about 5 to 10 percent of global demand.
An African hydrogen industry with that production capacity would likely create 1.9 to 3.7 million jobs and boost GDP by as much as US$60 to 120 billion by 2050.
Green hydrogen has the potential to reduce emissions, unlock economic opportunities, and create new and valuable jobs for countries across the Middle East and North Africa region.
Africa could be among the most competitive sources for green hydrogen in the world, the report shows, with a cost of US$1.8 to 2.6 per kilogram (kg) in 2030, further decreasing to about US$1.2 to 1.6 per kg by 2050 as hydrogen production technology matures and renewable energy costs continue to decline.
Proximity to demand centers in Europe and Asia also optimally positions the continent to build an export-oriented hydrogen sector, the report suggests, noting African energy exports via green hydrogen and derivatives would reach 20 to 40 mtpa by 2050.
The remaining 10-20 mtpa would serve domestic hydrogen demand, helping to boost electrification of African communities and delivering other socioeconomic benefits, including a more sustainable energy grid, expanded clean energy access, and reduced reliance on fossil fuel imports.