Cross-Border Export of Green Hydrogen: Legal and Policy Recommendations for Promoting the Cross-Border Export of Green Hydrogen in Africa

INTRODUCTION?

Green hydrogen, produced from water using renewable energy, is a game-changer for clean energy. It can be used in transportation (fuel cell vehicles), industry (replacing fossil fuels in processes), and power generation (stored for use during low renewable energy times) The global green hydrogen market is still young, but growing rapidly;, driven by factors like rising demand for clean energy, technological advancements, and government support. Europe, Asia, and Africa are all key players, with the EU, China, and projects like the Namibia-South Africa pipeline leading the way. The challenges facing green hydrogen globally include high production costs, infrastructure needs, and a lack of standardized regulations. However, opportunities are abound in terms of cost reductions, job creation, and geopolitical advantages for countries with abundant renewable resources. Overall, green hydrogen is a promising path towards a clean energy future.

Africa is a prime candidate for leading the green hydrogen revolution due to its abundant sunshine, wind, and land mass. Several projects are underway, like the Namibia-South Africa pipeline and green hydrogen valleys in Namibia. However, challenges include building infrastructure, creating consistent regulations across countries, and training a skilled workforce. To overcome these hurdles, Africa can leverage regional collaboration, attract investments through incentives, and also prioritize research and development. Green hydrogen success in Africa can bring economic growth, energy independence, and climate change mitigation benefits.

CROSS-BORDER EXPORT OF GREEN HYDROGEN?

Although hydrogen is a product historically used in the chemical sector, the commitment of a growing number of nations to the energy transition has put it back at the center of attention as an alternative energy vector to fossil fuels.

All key energy outlook scenarios show that hydrogen and renewable energy resources will be major contributors to the worldwide mitigation of greenhouse gas emissions. The evidence is based on the growing number of political initiatives to support the development and deployment of green hydrogen production technologies and their use in fuel cells to meet mobility challenges or to provide an alternative to batteries to store intermittent renewable energy production. Green hydrogen appears to be a promising and flexible option to accompany the energy transition and mitigate the risks of climate change.? It provides the opportunity to decarbonize industry, buildings, and transportation and provide flexibility to the electricity grid through fuel cell technology.

Hydrogen is an element that exists in gaseous form and can be produced through a variety of methods. The most common method of hydrogen production is steam methane reforming, which involves the reaction of natural gas with high-temperature steam to produce hydrogen and carbon dioxide. Hydrogen can also be produced from renew- able energy sources like wind, solar, and water through electrolysis. In the transportation sector, hydrogen-powered vehicles have the potential to replace traditional gasoline-powered vehicles and thus, reduce greenhouse gas emissions. In addition, hydrogen can be used as a fuel for electricity generation, which can help to integrate renewable energy sources into the grid, and improve energy storage capabilities. Furthermore, hydrogen can be stored and transported easily, making it a valuable energy source for grid stability and energy security.. In the search for cleaner and more sustainable energy sources, hydrogen has emerged as a promising alternative to traditional fossil fuels. Hydrogen is the lightest and most abundant element in the universe, and when burned, its only by-product is water. This clean-burning nature, combined with its versatility and high energy content, has made hydrogen a promising energy source for the future.

Green hydrogen, produced through electrolysis using renewable energy sources like solar and wind, is rapidly gaining traction as a global clean energy commodity. While the export market is still in its nascent stages, several key players and promising projects are emerging, shaping the future of the green hydrogen trade. Currently, green hydrogen exports are relatively small due to factors like high production costs, lack of standardized infrastructure, and an evolving regulatory landscape. Despite the limited scale, significant investments are being made in production facilities and export infrastructure, indicating a rapidly growing market. Countries with abundant renewable resources recognize the potential of green hydrogen exports as a driver of economic growth and energy security. For example, The European Union (EU) is a frontrunner in developing a comprehensive strategy for green hydrogen production and use, aiming to become a major importer in the long term. Several large-scale projects are underway in countries like Germany, France, and the Netherlands, with plans to import green hydrogen to meet future energy needs. Asian Countries, particularly China, Japan, and South Korea are heavily invested in green hydrogen development. China, in particular, is aiming to become a major producer and exporter of green hydrogen, leveraging its vast manufacturing capabilities and strategic partnerships, and finally, Africa, which boasts immense potential for green hydrogen production due to its abundant sunshine and wind resources. Several projects are underway, including the ambitious Namibia-South Africa green hydrogen pipeline, showcasing Africa's emerging role as a potential future green hydrogen exporter. Examples of these major projects include the Namibia-South Africa Green Hydrogen Pipeline, a €20 billion project that aims to connect production hubs in Namibia to South Africa, creating a crucial regional green hydrogen hub and potentially serving as a springboard for future exports beyond Africa.

High production costs remain a hurdle for widespread adoption of green hydrogen. Technological advancements and economies of scale have the potential to drive down these costs. Building the necessary infrastructure for large-scale production, transportation (pipelines, specialized ports), and storage requires substantial investment, Innovative financing models and public-private partnerships are crucial, and lack of harmonized regulations and standards for green hydrogen production, transportation, and safety can create uncertainties for investors and developers. International collaboration is also needed to establish a unified framework.

African industrial demand is limited and highly concentrated. Morocco in particular has the basis for a strong industrial demand. Other countries, including Egypt, South Africa, and Kenya, have or are developing hydrogen strategies, yet current demand from African industries is limited. Production of green hydrogen requires a sufficient supply of renewable energy. This is currently not the case in Africa, given the relatively low levels of deployment. Only about 9% of overall energy generated in Africa comes from renewable sources, and transport and storage costs significantly affect the price of renewable hydrogen. Optimistic scenarios see the price for producing green hydrogen drop to under USD 1/kg in all regions of the world by 2050. Transport costs, however, will be a significant portion of the final price. EU imports from North Africa and the Middle East have the greatest theoretical potential to compete on price, depending on pipeline infrastructure and a range of other factors. Africa’s low-carbon industrial potential is severely underutilized. IRENA estimates that the bulk of green hydrogen and ammonia in 2050 will be regionally traded, rather than globally. African countries have the theoretical potential to be highly competitive in both direct electrified industries and commodities, including ammonia. In the absence of stable export demand established trade flows and hydrogen infrastructure, African economies may need to readjust their expectations and focus on attracting and developing African low-carbon industries for hydrogen consumption. North Africa and the Middle East, for example, have a significant theoretical potential for green steel production using hydrogen-based Direct Reduced Iron, yet North Africa today only houses a fraction of global production, while investment in steel decarbonization tends to focus on existing production centers in Asia, Europe, and the US.

Nevertheless, the green hydrogen export market is on the cusp of significant growth. While challenges exist, the potential for green hydrogen to revolutionize the global energy landscape is undeniable.?

LEGAL AND POLICY RECOMMENDATIONS FOR PROMOTING CROSS-BORDER EXPORT OF GREEN HYDROGEN IN AFRICA

The experience of Africa’s ‘first movers’ shows that Africa’s clean energy potential is only one factor among many that define a country’s ability to secure benefits in a global green transition. Kenya and Morocco’s experiences are driven by short-to-medium-term economic and social objectives, beyond longer-term climate concerns. Technical assistance and policy support will be crucial to better connect demand and supply and a steady flow of bankable projects. Policy recommendations Include:

• Trade Agreements for Streamlined Exports: Developing regional trade agreements focusing on green hydrogen can address issues like tariffs, quotas, and harmonization of customs procedures. This will streamline cross-border trade within regions like Africa or Europe. Global trade agreements can facilitate green hydrogen trade between continents, fostering a robust international market. Trade facilitation measures include streamlined customs clearance processes and mutual recognition of green hydrogen certification schemes.

• Financial Incentives: Tax breaks, subsidies, and feed-in tariffs can incentivize green hydrogen production, making it economically competitive with traditional energy sources. Export subsidies and grants can encourage companies to export green hydrogen, promoting market development and global adoption; and government funding for R&D can accelerate technological advancements and reduce green hydrogen production costs.

• Investment in Infrastructure: Building large-scale, efficient green hydrogen production facilities powered by renewable energy sources is crucial. Investing in pipelines, specialized ports for hydrogen shipment, and storage facilities is essential for efficient and safe transportation and also the modernisation of electricity grids to accommodate the integration of renewable energy sources for green hydrogen production is vital.

• Collaboration and Partnership: Collaborations and partnerships between governments and private sector entities can leverage expertise and resources for infrastructure development and project financing. Sharing knowledge, best practices, and technological advancements through international partnerships can accelerate green hydrogen development globally, and? Investing in training programs to create a skilled workforce across the green hydrogen value chain is crucial for successful project implementation.

• Standardization and Safety: Harmonized regulations across countries are essential for green hydrogen production, transportation, and storage. This ensures the promotion of safety, environmental protection, and quality standards.

• Transparency and Predictability: Clear and transparent regulatory frameworks provide investors with confidence, encouraging investment in green hydrogen projects.

• Life Cycle Assessment: Regulations should consider the entire green hydrogen life cycle, from production to consumption, to ensure environmental sustainability.

CONCLUSION?

The cross-border export of green hydrogen in Africa is gaining momentum, driven by the continent's abundant renewable energy resources and the need to decarbonize industries and transportation. Key projects and developments, such as the Namibia-South Africa Green Hydrogen Pipeline, are underway to create a regional green hydrogen production and export hub. Africa has significant potential for green hydrogen production and export. Cross-border export of green hydrogen is crucial for decarbonizing industries and transportation.?

The future of green hydrogen exports from Africa looks promising, with the potential to transform the continent's economy and energy sector. As the global demand for clean energy increases, Africa can position itself as a leading exporter of green hydrogen, creating new economic opportunities and jobs.

By implementing the recommendations and working collaboratively, African nations can create a supportive environment for cross-border green hydrogen trade. This will unlock Africa's potential as a major green hydrogen exporter, and contribute to a cleaner, more sustainable future for generations to come.

Ismail Marouani ,Tawfik Guesmi ,Badr M. Alshammari ,Khalid Alqunun ,Amed Alzamil,Mansoor Alturki Hsan Hadj, Integration of Renewable-Energy-Based Green Hydrogen into the Energy Future https://www.mdpi.com/2227-9717/11/9/2685 Accessed 4 July 2024Yeshiel Panchia The Rise Of Green Hydrogen In Africa https://www.forbesafrica.com/focus/2023/08/14/the-rise-of-green-hydrogen-in-africa/ Accessed 4 July 2024B.E. Lebrouhi, Global hydrogen development - A technological and geopolitical overview https://www.sciencedirect.com/science/article/abs/pii/S0360319921047765 Accessed 4 July 2024 Ibid Hydrogen Production: Natural Gas Reforming https://www.energy.gov/eere/fuelcells/hydrogen-production-natural-gas-reforming Accessed 4 July 2024 Bassma Reda, Amr A. Elzamar, Shehab AlFazzani & Shahira M. Ezza Green hydrogen as a source of renewable energy: a step towards sustainability, an overview https://link.springer.com/article/10.1007/s10668-024-04892-z Accessed 4 Ju;y 2024 Supra (Ismail Marouani ,Tawfik Guesmi ,Badr M. Alshammari ,Khalid Alqunun ,Amed Alzamil,Mansoor Alturki Hsan Hadj, Integration of Renewable-Energy-Based Green Hydrogen into the Energy Future https://www.mdpi.com/2227-9717/11/9/2685 Accessed 4 July 2024) Shades of green hydrogen: EU demand set to transform Namibia https://www.climatechangenews.com/2023/11/15/green-hydrogen-namibia-europe-japan-tax-biodiversity-impacts/ Accessed 4 July 2024 Green hydrogen: The future of African industrialisation? https://ecdpm.org/work/Green-hydrogen-the-future-of-African-industrialisation Accessed 4 July 2024 Ibid IRENA GLOBAL HYDROGEN TRADE TO MEET THE 1.5°C CLIMATE GOAL https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2022/Jul/IRENA_Global_hydrogen_trade_part_1_2022_.pdf Accessed 4 July 2024 Bruce Byiers Alfonso Medinilla Karim Karaki, Navigating green economy and development objectives: African energy transition opportunities and risks https://ecdpm.org/work/navigating-green-economy-and-development-objectives-african-energy-transition-opportunities-and-risks Acccessed 4 July 2024