Energy

2 6 GOVERNMENTAL SUPPORT AND COOPERATION In addition to developing a clear and effective regulatory framework (both domestically and internationally), governments will need to create an investment environment that facilitates the successful development of green hydrogen projects, and associated industries, in Africa. Support will need to be wide ranging, encompassing: cooperation on research and technology, developing and deepening export markets, providing direct funding for hydrogen projects and supply-chain infrastructure, providing fiscal incentives (or implementing taxes) that encourage the substitution of hydrocarbons for green hydrogen, and incentivizing (i.e., subsidizing) the early adoption of hydrogen-based technologies. Fortunately, frameworks for governmental support and cooperation are already emerging. South Africa launched its HySA hydrogen strategy in 2008, and last year, Morocco entered into a 'Power- to-X' partnership with Germany, which, according to plans from the Moroccan Solar Energy Agency (MASEN), is expected to result in the development of Africa's first hydrogen project. Nigeria has also expressed an interest in utilizing hydrogen, and Egypt has partnered with Siemens to implement a green hydrogen pilot project. Regionally, the African Hydrogen Partnership, a Continent-wide trade association, has been championing "The African Green Hydrogen Deal", a comprehensive plan to ensure that Africa reaps the environmental and economic benefits of its green hydrogen potential. Perhaps most significant is the support from the EU. The EU has already established the Africa-Europe Green Energy Initiative as a forum for identifying and developing green hydrogen opportunities on the continent, with potential funding for such projects coming from the European Fund for Sustainable Development. The EU has also set aside approximately €30 billion for investment in SSA (including clean energy projects) via the new Neighborhood, Development and International Cooperation Instrument. The EU Hydrogen Strategy also envisages the extensive investments in the EU hydrogen supply chain, and the development of a regulatory and policy framework, that could make Africa-EU hydrogen export a reality. INSIGHTS 04 Possibility or Pipe Dream?… Can Africa Really Build a Successful Green Hydrogen Economy?

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