The African Development Bank Group (AfDB) said Nigeria and the entire Africa could produce between 30 to 60 million tonnes of green hydrogen yearly by 2050, out of which 20 to 40 million tonnes could be exported as pure hydrogen, ammonia and synthetic fuels.
The AfDB said this would require about $680 billion to $1.3 trillion with massive benefits, including 1.9 million to 3.7 million jobs and about $60 billion to $120 billion contribution to the gross domestic product (GDP) in 2050.
The Director General, Nigeria Country Department, AfDB, Lamin Barrow, stated this at the third-anniversary lecture of NatureNews Newspaper and presentation of The Hero of Environmental Actions for Development (HEAD) Awards held in Abuja,
Barrow said without significant access to finance technology and capacity, the decarbonisation of African economies would significantly delay. He said Nigeria can be the pacesetter for the continent by tapping into the emerging green hydrogen with huge potential in Africa, which is emerging as a potential hub for cost-competitive green hydrogen production.
According to him, with abundant renewable energy resources, expansive spaces, easy access to key trading routes, and support from governments, Africa is well positioned to emerge as a global source of low-cost renewable electricity-derived hydrogen.
He said while Africa today accounts for only three per cent of the global hydrogen project announcements, the continent’s announced capacity has doubled in the past year alone.
“With over 10,000 GW of solar potential, 350 GW of hydroelectric potential, 110 GW of wind potential and an additional 15 GW of geothermal potential, the bulk of which remains untapped, Africa has huge potential to achieve universal access to electricity/energy.
“Being home to about 20 per cent of the world’s population, the continent accounts for only six per cent of global energy demand and slightly more than three per cent of electricity demand. Africa’s energy transition must therefore be undertaken in tandem with accelerating energy access, including enhancing productive use of electricity,” he stated.
Barrow noted that with energy transition estimated at $100 billion per annum, African countries require increased support from development partners through scaling-up of concessional facilities such as the Sustainable Energy Fund for Africa (SEFA).
He said Nigeria is committed to transition to net zero by 2060 as the 30:30:30 principle remains central to achieving a just energy transition. He said this requires the country to achieve 30,000 MW of power generation capacity by the year 2030 from the current 13,000 MW of installed capacity, out of which 30 per cent should be from renewable energy.
Barrow said gas remains a strategic transition energy source for Nigeria with the power sector currently fueled by gas at the rate of 80 per cent with hydro accounting for 20 per cent.
