S H E A R M A N & S T E R L I N G L L P | 2 7
SO, CAN AFRICA BUILD A SUCCESSFUL
GREEN HYDROGEN ECONOMY?
Africa can build a successful green
hydrogen economy; however, doing so
will not be easy or immediate. Also, much
like the hydrocarbons wave, the green
hydrogen boom will benefit some on the
continent more than others.
African hydrogen projects will need to
overcome the many issues affecting
hydrogen projects globally (e.g., cost,
complexity, interface issues, technology
risk and the absence of a well-developed
downstream market) and will also
face challenges specific to their own
geographies and circumstances (e.g.,
the dichotomy of scaling renewables
for hydrogen production on an under-
electrified Continent). However, for those
bold enough to try, the rewards of being
early investors in the green hydrogen
economy await.
Unfortunately, Africa has failed to fully
capitalize on its hydrocarbon wealth.
While there are still many chapters left to
be written in Africa's hydrocarbons story,
African governments should act quickly to
avoid repeating history and move to catch
a green hydrogen wave that could be truly
transformational.
This article first appeared in Project
Finance International on February 9, 2021.
Samuel Ogunlaja
Senior Associate
Abu Dhabi
T +971 2 410 8162
samuel.ogunlaja@shearman.com
