Ports to play part in development of green hydrogen in Africa, UNCTAD says

November 13, 2024, by Aida Čučuk

Ports could play a variety of roles in the hydrogen economy of Africa, such as acting as landlords by providing land for the hydrogen economy and investing in infrastructure, including pipelines, terminals and fuel stations, according to UN Trade and Development (UNCTAD).

In its Review of Maritime Transport 2024, the organization shared that transitioning from the use of fossil fuels to renewable energy sources is on the agenda of African leaders and policymakers, noting that in this context, countries across the continent are exploring the potential to harness green hydrogen to meet energy needs and broaden the energy mix.

“Green hydrogen requires substantial renewable energy and hydropower resources. The interplay of these resources, as well as land availability and quality of port infrastructure, defines the geography of the hydrogen economy in Africa. Coastal countries possess significant potential in this regard, not only due to water and energy availability, but also due to the existence of port infrastructure,” UNCTAD stated.

The energy requirements of industries as well as the shipping sector in particular are expected to lead to a substantial demand for hydrogen in the vicinity of ports, the report found.

African countries are said to have a range of opportunities along the value chain of green hydrogen development, and as per the report, ports could be involved in its different stages:

“For instance, when conceived as industrial zones, ports could be used not only to generate renewable energy but also to produce and store green hydrogen. Green hydrogen could be produced from onshore and offshore wind farms and could be imported or exported through ports.”

Europe is anticipated to be the main importer of green hydrogen from Africa by 2050.

For imports of green hydrogen to Africa, ports are expected to play a “key” role in facilitating hydrogen supply to the wider port community and hinterlands, due to their role as energy hubs.

As for the production part of the hydrogen value chain, the report highlighted that some African countries have become involved in it due to the potential to export hydrogen to international markets.

In 2023, Namibia and Hyphen Hydrogen Energy agreed on a deal to produce and export up to 300,000 tons of green hydrogen per year. Similar projects are expected in Angola, Egypt, Mauritania, Morocco, Tunisia and other countries.

To conclude, UNCTAD emphasized that countries need to invest in import and export terminals, port equipment such as refueling stations and bunkering infrastructure and pipelines to transport hydrogen, adding:

“International trade in green hydrogen also requires market development and promotional activities. It entails developing policies to market green hydrogen and creating regional alliances to encourage its use, as well as trade within and between countries. An example of one such partnership is the African Green Hydrogen Alliance, formed by six coastal countries, namely, Egypt, Kenya, Mauritania, Morocco, Namibia and South Africa.”

It is worth mentioning that the Global South, including African countries, has been recognized as a promising market for green fuels. By implementing the concept of green shipping corridors, countries in the Global South could be supplying green fuels to the countries of the Global North.

During the webinar “Leveraging Maritime Green Corridors in Your Climate Strategy,” organized by Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping on March 20, 2024, it was stressed that places on the map of the Global South have the opportunity to become new bunkering hubs.