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Join on Telegram Rabat- Multinational consulting firm, McKinsey & Company, has just published a new report arguing that it is possible to achieve carbon neutrality in the manufacturing sector in Africa through an economic trajectory. The company cites Morocco as a leader in green hydrogen production.
In Morocco’s energy strategy, green hydrogen has become a key component to decarbonizing the country’s manufacturing sectors and reducing greenhouse gas emissions.
The north African country is now qualified to become a leader in the development of “new oil,” according to the Mckinsey report. Due to its well-designed roadmap, Morocco could capture up to 4% of the global market for green molecules.
As a result, McKinsey & Company’s report, titled “Africa’s Green Manufacturing Crossroads: Choices for a Low Carbon Industrial Future,” included a whole section highlighting Morocco’s green hydrogen production.
The consulting firm’s new study indicates that “the development of large-scale green hydrogen production is the key to Morocco’s strategy for a net-zero future.”
In Morocco, green hydrogen is a tool for the transition to a sustainable energy system.
With this awareness, the country is taking steps to mitigate climate change and consider its responsibilities. According to the study, this can only be achieved with cooperation among government, civil society, businesses, and international organizations.
The report highlights the World Power-to-X Summit, organized by the Institute for Solar Energy and New Energies Research (IRESEN) and the Mohammed VI Polytechnic University (UM6P) from December 1-3, delivering a keynote speech on green hydrogen and its derivatives prospects for the future of clean energy.
It was also intended to facilitate the creation of a regional platform for a discussion of green hydrogen and its application through the Power-To-X economy.
A roadmap for the future
Morocco ’s hydrogen ambitions include participation in other important international hydrogen conferences, such as the Portuguese Hydrogen Conference, which was held in April 2021.
The North African country has put in place favorable regulatory frameworks in relation to the shift to a hydrogen-driven, green economy, according to the McKinsey report.
To facilitate the development of a roadmap for the deployment of this new oil, Morocco established a National Hydrogen Council (CHD) in June 2020.
The country is now seeking to consolidate its sustainability-driven infrastructure as part of its commitment to supporting the worldwide shift to renewable energy development.
A working group with the CHD on gas infrastructure, led by the National Office of Hydrocarbons and Mines (ONHYM), makes recommendations regarding the development of a logistics hub for transporting hydrogen to Europe, according to the same report.
Morocco establishes multiple partnerships to develop green oil
Additionally, several partnerships have been established with countries across Europe to further enhance hydrogen production and identify new funding and training strategies in Morocco.
Moroccan authorities have developed an energy model that promotes the production of green hydrogen-based primarily on renewable energies. The country has been successful in developing 960MW of renewable energy sources in only four years (from 2015 to 2019 ), reaching a total of 3,865 MW by the end of 2019.
Among the solar power plants across the world, the Noor Ouarzazate plant in Morocco represents the largest capacity at 580 MW, according to the study.
In the next 30 years, Africa’s emissions will likely come from its future growth and the rapid adoption of new green manufacturing technologies to create new jobs and create more carbon-efficient products, as well as moving towards low-emission manufacture will play an important role.
There are 24 green business opportunities across several sectors, including agriculture, biofuels, basic materials, energy, packaging and plastic, transportation, and textiles and apparel – each with considerable potential for green growth, according to the study’s analysis.
Why Africa?
Africa’s manufacturing sector could grow to low carbon levels, according to the McKinsey & Company report. Kartik Jayaram, a Nairobi-based senior Mckinsey official, suggests that the African continent’s choices will be crucial in reconciling industrialization and green growth.
The manufacturing industry presents many opportunities for growth but making the transition to sustainably industrialized poses some challenges, according to Jayaram.
“Half of the industrial infrastructures likely to emit GHGs ( greenhouse gases) in 2050 are not yet present in Africa. The manufacturing industry, therefore, has the possibility of making a technological leap, by favoring the development of solutions to low carbon emissions,” he explained.
“This strategy would avoid a strong dependence on fossil fuels and the costs associated with the transition from the fuel sector to renewable energies, as observed in developed countries. This prospect also paves the way for an African economy more competitive, resilient, and sustainable.”
Studies indicate that Africa’s manufacturing industry produces 440 megatons of CO2 equivalent, which equates to 30-40% of the continent’s entire carbon footprint.
A total of five manufacturing sectors – cement production, coal conversion to liquid, refining petroleum, iron, and steel production, and ammonia production- emit more greenhouse gases than any other industry.
Since the continent is at a crossroads and has a choice to make about the path forward, it is imperative to think about more sustainable economic growth.
Africa is at a pivotal point, as it seeks to recover from the COVID-19 pandemic and chart a new path towards prosperity, and there is a unique opportunity to reimagine a more sustainable path forward.
African manufacturing can be about innovation, about providing new opportunities, financing, and technology to create a more sustainable and equitable world that will benefit future generations.
