The report was authored by Masdar and Abu Dhabi Sustainability Week, while McKinsey & Company assisted with the analysis. According to a groundbreaking report released by Masdar and its Abu Dhabi Sustainability Week (ADSW) platform in conjunction with the 2022 United Nations Climate Change Conference, Africa has the potential to capture as much as 10 percent of the global green hydrogen market, which could lead to the creation of as many as 3.7 million jobs and the addition of as much as US$120 billion to the continent's gross domestic product (GDP) (COP27). According to the report "Africa's Green Energy Revolution: Hydrogen's role in unlocking Africa's untapped renewables," written with analytical support from McKinsey & Company, Africa's abundant solar and wind resources could be used to produce 30 to 60 mtpa of green hydrogen by 2050, about 5 to 10 percent of global demand. The analysis finds that by 2050, an African hydrogen sector with that level of production could generate between US$60 and US$120 billion in additional GDP while also providing employment for between 1.9 and 3.7 million people.
Mohamed Jameel Al Ramahi, Masdar Chief Executive Officer, said, “This report provides a blueprint for African nations to deliver sustainable, low-carbon growth while extending energy access across the continent. Green hydrogen has the potential to reduce emissions, unlock economic opportunities, and create new and valuable jobs for countries across the Middle East and North Africa region. Masdar has long recognized green hydrogen’s potential, with investments as far back as 2008. With several green hydrogen projects underway today around the world – including a number in Africa – we look forward to continuing to work closely with our African partners to maximize the many achievable benefits of green hydrogen highlighted in this report.”
With a cost of US$1.8 to 2.6 per kilogramme (kg) in 2030 and further decreasing to about US$1.2 to 1.6 per kg by 2050 as hydrogen production technology matures and renewable energy costs continue to decline, the report indicates that Africa could be among the most competitive sources for green hydrogen in the world. When it comes to green hydrogen production, Masdar is one of the world's most prominent clean energy enterprises. With the goal of increasing Egypt's electrolyzer capacity to 4 gigawatts by 2030 and producing up to 480,000 tonnes of green hydrogen annually, Masdar and Egypt's Hassan Allam Utilities signed agreements with leading Egyptian state-backed organisations in April to collaborate on the development of green hydrogen production plants in the country.
