The Green Hydrogen Market: The Industrial Equation of the Energy Transition

The green hydrogen market 1 is poised for major upheaval in the years to come as new players in the energy transition emerge. This market, however, still depends on the development of demand, the reduction of production, transport and storage costs, the development of truly competitive supply chains and the establishment of and appropriate legal and regulatory framework. Despite the many challenges facing this sector, a number of countries have begun to position themselves as importers and/or exporters to capitalize on this new dynamic, with significant implications for industrial, logistical and technological investment, as well as diplomatic and geopolitical influence. Africa has significant advantages in terms of renewable resources at competitive prices and proximity to European markets, which depend on hydrogen to replace fossil fuels in sectors that are difficult to decarbonize, including steel, chemicals and transportation. But to translate these assets into real, viable, wealth-creating opportunities, African countries targeting the export market will need to make the right choices as stakeholders in this transformation, with respect to business models, technology and regional integration.