[REPORT] Middle East & Africa Hydrogen Projects 2024

Middle East & Africa Hydrogen Projects 2024 is a complete analysis of the green and blue hydrogen projects program in the Middle East and Africa. Covering more than 50 green and blue hydrogen projects with a total investment value of more than $150bn, the report is the first single publication summarising in detail each of the projects along with a breakdown of their capacities, locations, stakeholders, timelines, key personnel and phasing.

The report helps you to make the most of the opportunities in one of the world’s largest and most innovative projects markets.

To continue reading more, purchase our latest report, Middle East & Africa Hydrogen Projects 2024.

Included in the report:

• Detailed project information
• Top clients and values and capex
• Project packaging and phasing
• Key stakeholders and decision makers
• Future contracts and packages
• Visualisation of each hydrogen projects
• Details of supplier and contractor registration
• Key challenges and drivers
• Assessment of country policies and strategies toward hydrogen investment
• Details the main projects being planned, under development and those due to be awarded in 2024 and beyond
• Projects opportunities with client and procurement details
• Investment drivers and client spending plans
• Understand risks and set strategy
• Identifies the biggest spending clients
• Identifies risks and opportunities
• The report includes proprietary data from MEED Projects

Why Now?

A major factor behind the acceleration in hydrogen project activity is the rapid reduction in renewable energy costs. Solar PV costs are now as low as $0.045 a kilowatt hour, and on an IPP basis developers in the region have been offering a LCOE to offtakers as little as 0.0135 cents a kilowatt hour (3 times cheaper than the global average).

Thanks to a combination of factors such as net zero targets, diversity and security of supply, and increasing gas prices, growth for hydrogen is expected to increase dramatically. As more production comes onstream and technology improves, the average cost of green hydrogen is forecast to decrease to about $2 a kilo in 2030 from $5 today.

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Market Drivers

There are multiple reasons for the sudden growth in hydrogen projects. Perhaps the biggest is the region’s understanding that in the long-run, it needs to replace hydrocarbons exports with a cleaner fuel as the world undergoes energy transition.

Thanks to high irradiation levels, space and location, the region is acting fast to take first mover advantage and secure offtake agreements globally, and as a consequence retain some of its position as the world’s prime energy exporter.

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Active Projects

Hydrogen is fast emerging as MENA states seek to take advantage of cheap solar energy and enhance their position as global energy exporters. More than $120bn of planned hydrogen projects but only 2 so far under construction (Ain Sokhna pilot and NEOM).

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Hyphen - Green Hydrogen Project - >$9bn

The Green Hydrogen Project by Hyphen Hydrogen Energy is Namibia’s first green hydrogen production project. The project is situated at the Tsau/Khaeb National Park, near the coastal town of Luderitz. The project is part of the larger Southern Corridor Development Initiative (SCDI) of the Namibian government, aimed at large-scale hydrogen production and export.

Hyphen Hydrogen Energy is a joint venture of the two companies, Nicholas Holdings Limited, an investment and project development company focused on African infrastructure projects, and Enertrag, a German renewable energy company. Hyphen was appointed as the preferred bidder of the project in November 2021.

The project will be built at an estimated cost of $10bn. – roughly the equivalent of Namibia’s annual GDP. The Namibian government has plans to take up to 24 per cent stake in this, raising $500m from its own funds, according to James Mnyupe, the Namibian government’s green hydrogen commissioner.

Hyphen’s project is proposed to be set up on 4,000 km2 of land owned by the government. Hyphen is working with the Namibian government, as of November 2022, in drawing up an implementation agreement that will trigger the start of a feasibility study for the project by the end of 2022. Boston Consulting Group and Lazard have been appointed as strategic and financial advisors respectively. Slaughter and May, and ENS Africa are the legal advisors.

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The electrolysis unit and renewable energy complex will be located in the 4,000 km2 concession area which will be fed by desalinated seawater piped from the desalination plant at Luderitz port. Any excess electricity will be exported by NamPower on a 66kV overhead transmission line.

Namibia has excellent solar and wind resources, so much, that German federal research minister, Anja Karliczek said in August 2021 that Namibian green hydrogen could be the cheapest in the world, with costs falling to around €1.50–2.00/kg.

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H2 Waste to Hydrogen Plant – $3bn

Overview

Development of a 1GW liquid organic hydrogen carrier hub at the northern entrance of the Suez Canal.

Production of 300,000 tonnes of green hydrogen per annum with electricity generated from4 million t/y of organic waste and nonrecyclable plastic.

Client says LCOE will be half the cost of current green hydrogen production.

Output will be sold locally by truck. Estimated to cost $3bn.

The project is expected to be implemented in three phases with the first phase due for completion by the end of 2026.

Stakeholders

• H2 Industries will be developer and the EPC contractors.
• The General Authority for the Suez Economic Zone (SCZone) is the master developer.

Status

The project is still in the initial stage of development – the study phase.

Main contract tender issue and commercial bid submission expected during 2024.

The project will be developed as an onshore Engineering Procurement Construction (EPC) contract.

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Kizad Brooge Hydrogen - $1.5bn

Overview

300,000metric tonnes of green ammonia capacity in first phase. Estimated to cost $1.5bn.

A further capacity expansion up to 600,000 metric tonnes of green ammonia per annum planned under the second phase of the project.

Stakeholders

• Brooge Energy – Project client
• Ernst & Young – Project consultancy services
• Thyssenkrupp Uhde – Technical study for the project

Status

In July 2022, the client has signed the preliminary land lease agreement for the development of the project.

Main contract tender issue as well as commercial bid submission expected during Q3 2023.

The project will be developed as an Engineering Procurement Construction (EPC) contract.

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To continue reading more, purchase our latest report, Middle East & Africa Hydrogen Projects 2024.

Included in the report:

? Understand each of the 50-plus green and blue hydrogen projects across the

Middle East and Africa.

? A detailed and comprehensive description of each hydrogen plus future phasing, timelines and spending plans when known.

? Details of known project components such as ammonia plants, air separation

units and export facilities.

? Identification of the key stakeholders and decision makers at each hydrogen

project.

? Details on how companies can register and prequalify for each project.

? All the MEED Insight reports are delivered via email in digital version.

Questions? We’re here to help.

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