This article was produced by PwC, a member of IPFA.
Despite the considerable progress that has been made to generate energy from renewable sources, the transition to clean energy has been slow due to its limited efficiency and reliability. As such, industries and transportation sectors still rely heavily on fossil fuels. However, hydrogen can be used to decarbonise sectors that are difficult to electrify. Building a clean and cost-effective energy system will require replacing grey hydrogen with green and blue hydrogen, which requires extra clean electricity to produce.
Africa has all the necessary elements ranging from abundant renewable energy sources to land availability which gives it a competitive advantage in producing green hydrogen. The establishment of the Africa Green Hydrogen Alliance in 2022 is expected to make Africa a front-runner in the development of green hydrogen. However, much support is needed to increase the momentum by establishing legal frameworks and long-term policies that support the green hydrogen value chain in Africa.
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