Rabat – Europe is eyeing Africa as a future “source of cheap and sustainable energy,” as studies increasingly point out Morocco, as “the nearest,” and “cheapest” source of green hydrogen, a green fuel that has the potential to replace oil.
According to a report from the European Conservatives, Europe is planning massive investments into green hydrogen and solar panels that involve mostly Morocco, Egypt, and southern Africa.
The report recalls the pact between the EU Commission and Morocco for a multi-million investment deal that covers green fuel production for export to Europe. The deal reflects Europe’s strategy to draw on Africa’s proximity and potential in green energy production to cover its domestic energy needs.
Data reported by the European Conservatives indicates that the European Investment Bank already maintains that Africa’s green hydrogen production capacity is valued at a 1 trillion-euro investment.
“The new study combines analysis of investment opportunities, focusing on four hubs: Mauritania, Morocco, southern Africa and Egypt with a roadmap of technical, economic, environmental and financial solutions to unlock commercial development,” a press release indicated.
The study further argues that Africa’s large capacity in green hydrogen could support the continent to become the world’s new energy “powerhouse.”
The continent is projected to reach an annual production capacity of 50 million tonnes of green hydrogen by 2035 at a competitive price of or below $2 per kilogram.
In addition to the significant production potential, import costs of African green hydrogen remain low. “Importing hydrogen to Germany from Morocco, transported by ship as liquid hydrogen, presents the most competitive option in 2030, costing 4.58 EUR/kg.”
Another report from the International Renewable Energy Agency (IRENA) cited in the media report, singles out Morocco as the closest country to Europe that has the capacity to produce green hydrogen.
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