Electrification of Rural Africa using Green Hydrogen Technology
Regulation 28 of the Pension Funds Act has been amended to include the definition of Infrastructure Assets. Retirement Funds can now invest up to 45% into such assets and are required by law to report on the allocation. Although allocation to Infrastructure Assets is not mandatory, the spirit of the amendment is to encourage Retirement Funds to contribute to developing the country’s infrastructure. The amendment could be interpreted as the government’s failure to develop infrastructure, the need for infrastructure development cannot be refuted and could be considered patriotic.
Mark Twain once said that “patriotism is the last refuge of a scoundrel”. Nonetheless, in my latest article, I explore a halo project that could create a lasting social impact through infrastructure development.?
Africa historically was referred to as a “dark continent” – a colonial reference. Unfortunately, Africa’s lack of electricity perpetuates this historical reference. Satellite imagery from space depicts much of the African subcontinent at night as a literal dark continent.
Perversely this image is an absolute contrast to the continent’s vast natural resources.
Africa has abundant natural resources, including arable land, water, oil, natural gas, minerals, forests, and wildlife. The continent has substantial resources of renewable energies such as solar, wind, and hydro, but only a few have been explored.?
Africa’s Solar Resource Potential
Africa's Wind Resource Potential
The abundance of natural resources for renewable energy can be harnessed via solar and wind farms however the further lack of grid infrastructure inhibits the supply of electricity specifically to rural Africa, where it is most needed.
?Though the Government has tried many measures to improve the condition, nearly 600 million people are still in the dark and deprived of electricity in Sub-Saharan Africa.
?But there is a ray of hope, which is the emergence of Green Hydrogen Technology in Africa.
?Uses of Green Hydrogen
?Hydrogen, one of the most abundant, affordable, and clean-burning, has long been touted as the future fuel.
Green hydrogen, or hydrogen produced without fossil fuels, has been named a renewable energy source that could aid in achieving net-zero global emissions. It is created through electrolysis using wind and solar power. Let's see its various uses:
?Green hydrogen technology in Africa is a viable way to transform its energy sector. Around 9% of the total energy generated in Africa is from renewable sources, and 6.8% comes from hydropower. But the continent's population is rising exponentially, and there is much need to expedite the procedures.
?How is Hydrogen Converted to Electricity?
?Hydrogen reacts with oxygen in an electrochemical cell and produces electricity, water, and heat.
?Hydrogen fuel cells can provide electricity to places not connected to the electric power grid. These cells do not require frequent recharge but can still generate ample electricity.
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?Pros and Cons of Green Hydrogen
?Pros
Cons
?Significant Challenges in the African Electrification
?Access to electricity in both urban and rural areas forms the cornerstone of a country's development. But the African continent constantly faces critical issues in this regard. These are:
?Green hydrogen production in Africa needs a robust plan to support clean energy production and ensure adequate storage, transport, and refuelling facilities.
?Benefits of Electrification in Africa
?There are lots of advantages of the green hydrogen technology in Africa apart from it being a crucial factor in reducing poverty; these are:
?How to Reduce the Overall Cost of Green Hydrogen in Africa?
Meeting the requirements of the entire population through green hydrogen is not affordable in the current scenario. For this, there has to be partnership between companies and local communities. Examples are Maize milling and packaging, fruit planting, cash crops to pickled and frozen foods, etc.
?These companies will not only access electricity but can also create employment. Electricity generation can reduce the usage of candles. As a result, it will reduce spending which can be directed to other needs, amplifying further earning opportunities and creating more time for education.
?To conclude, as Africa has a growing population, electricity is essential to overall growth, employment, and well-being. Africa's abundant energy resources position the continent as a potential location for producing and exporting green hydrogen.
Africa also has significant untapped hydropower potential (an essential ingredient for generating green hydrogen), primarily along the Congo and Nile Rivers.
?In sub-Saharan Africa, South Africa was the first country to begin developing a green hydrogen sector. There is immense potential in this clean energy source, and it can help electrify the entire continent, even in the remotest corner.
?Encouragingly there are other significant developments in green hydrogen production in other African countries such as Namibia.
?Development of modular mini grid infrastructure that can utilise green hydrogen as an energy source could be elegant solution to the electrification of rural Africa.
*Article written in collaboration with Cape Africa and Yats Gopaul
Group CEO @ MNCapital Group | Financial Risk Management | Father | Manchester United
2 年This was a good presentation. I would like us to share with the South African investment community in November. I’ll talk to you about the South Africa Institutional Investors Forum on the 16th & 17th of November 2022 in Cape Town.