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Rabat – Given Morocco’s abundant renewable energy resources, the country has the potential to produce and export cost-competitive green hydrogen and derivatives including green ammonia, according to a report from renewable energy company Masdar.
Morocco is expected to produce green hydrogen at less than $2 per kilogram in 2030 and less than $1 per kilogram in 2050, the report, recently issued by the UAE state-owned company on the sidelines of COP 27, asserted.
Morocco is also set to export cost-competitive green hydrogen and derivatives to Europe, considering the country’s landed costs are highly competitive for the transportation of hydrogen through pipelines and cargo ships. Landed costs include the total expenses associated with the shipping of a commodity such as transportation fees, taxes, and insurance.
“For Morocco specifically, ammonia export may be attractive with a landed cost of about USD 530 a ton in Europe, notably lower than domestic production,” the report indicated.
In addition to Morocco, African countries such as Egypt, Algeria, and South Africa “are likely to be the most attractive locations for exports of hydrogen or its derivatives,” the report added, arguing that these countries have low production and shipping costs.
Masdar estimates that Africa could capture up to 10% of the global green hydrogen market by producing 30 to 60 million tonnes per year by 2050. This could contribute to the creation of 3.7 million jobs and an addition of $60-120 billion to the continent’s GDP over the next three decades.
Read Also: Morocco Co-launched Africa Green Hydrogen Alliance
Africa’s emerging green hydrogen market presents socio-economic growth opportunities for the continent while reinforcing the global decarbonization and green transition agenda.
“Green hydrogen has the potential to reduce emissions, unlock economic opportunities, and create new and valuable jobs for countries across the Middle East and North Africa region,” Masdar CEO Mohamed Jameel Al Ramahi said, adding that Africa is hosting a number of green hydrogen projects that are currently under development.
The list includes the Total Eren green hydrogen megaproject in Morocco, the Total and Chariot Nour green hydrogen project in Mauritania, the hydrogen-diesel dual fuel locomotive project in Namibia, Alfanar green ammonia in Egypt, and the ArcelorMittal and Sasol green derivatives project in South Africa.
As of October 15, Africa announced $30 billion worth of investments in 23 green hydrogen projects with a total electrolysis capacity of 48 gigawatts (GW). The projects represent 3% of the world’s total green hydrogen-announced projects.
These investments are likely to cut down the cost of green hydrogen production on the continent to reach $1.8-2.6 per kilogram in 2030 and $1.2-1.6 per kilogram in 2050 amid an overall decline in renewable energy costs.
