Green Hydrogen: A Comparative SWOT Analysis of the Green Hydrogen Market in Sub-Saharan and Northern Africa

Abstract

Abstract Africa, characterized by its abundant solar and wind energy resources has been identified as a potential leading player for green hydrogen (Hydrogen produced using renewable energy), IEA 2022. In November 2022, the Africa Green Hydrogen Alliance, (AGHA) described Green hydrogen as a clean and sustainable alternative to conventionally produced hydrogen, and is expected to play a key role in achieving net-zero and decarbonizing hard-to-abate sectors in the coming decade. An analysis by McKinsey Global Energy Perspective projects a significant growth in the global demand for hydrogen by 2050 - almost sevenfold to 607Mt in an achieved commitments scenario. Looking ahead, it is clear that green hydrogen could transform the continent’s energy landscape, from a net importer of fossil fuels to a major exporter of green energy. This paper conducts a comparative SWOT analysis of the green hydrogen market in African regions. It analyzes the internal strengths and weaknesses, as well as external opportunities and threats shaping the green hydrogen market in Northern and Sub-Saharan Africa, citing existing case studies and statistical data. The research findings reveal a significant growth momentum following an exponential rise in project announcements for electrolyzer capacity, and a 60% hydrogen production cost reduction, positioning green hydrogen as a leading, cost-effective, low-carbon, and clean energy solution by the end of the decade. This paper concludes with policy recommendations that serve as a guide for creating effective frameworks and strategic decision-making on the adoption of green hydrogen in Africa.