Green hydrogen from Africa: higher costs than expected!

Green hydrogen from Africa: higher costs than expected!

München, Deutschland - Europe plans to cover its need for green hydrogen through production in Africa. A new study by the Technical University of Munich (TUM), however, suggests that the financing costs for production systems in Africa are higher than before assumed. Only 2% of around 10,000 locations examined could be competitive for export to Europe. The study emphasizes that acceptance and price guarantees of European countries are a basic requirement for competitiveness.

Green hydrogen, which is obtained by electrolysis with renewable energies such as sun and wind, is crucial for climate -friendly industrial processes, including steel production. Africa is a potential production location, especially because of its ideal climatic conditions. Nevertheless, the first analyzes show that many African countries are considered risky investments, which restricts the financability of these projects.

expanded analyzes and potential

Part of the comprehensive examination is the H2Atlas-Africa project , which examines the potential to generate green hydrogen in the delegation of western, East and South Africa. Green hydrogen, a key technology in the fight against climate change, could stabilize the energy supply of Africa and reduce the dependence on fossil fuels.

When analyzing the potential in 31 countries, the project showed that the specific framework conditions of the individual regions have great differences that must be taken into account in the cost calculation. Results were published in an interactive map that is intended to help the planning and implementation of hydrogen systems in Africa. The final event of the project took place in May 2024, and a final report with detailed results is still expected.

green hydrogen in the European energy system

In Germany, hydrogen is a key component of the future energy system. The federal government plans to install hydrogen electrolysers with a total output of 5 GW by 2030 in order to provide 14 TWH hydrogen annually. The goal by 2035 is the increase in electrolysis capacities to 40 GW in order to cover the growing need for industry.

hydrogen can be produced in different ways, including gray, blue and green. While green hydrogen represents the most environmentally friendly variant that does not require CO₂ emissions, its production is associated with different degrees of efficiency. Electrolysis for the production of hydrogen requires considerable amounts of water, which can lead to usage competitions in some regions.

In chemical industry and steel production, hydrogen plays a central role, while its use in traffic should be limited to areas where direct use of renewable electricity is not possible. The essential role of the green hydrogen is thus illustrated for both European energy supply as well as for the ecological goals of Africa and the resilience of the energy supply there.