African Business

EU unveils plans to boost African LNG and hydrogen links

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The EU’s new strategic plan to end its dependence on Russian gas includes a diversific­ation of its suppliers and a considerab­le developmen­t of the renewable hydrogen market, in which Africa is expected to play a significan­t role, writes Leo Komminoth

A European Union plan to make Europe independen­t from Russian fossil fuels before 2030 calls for renewed dialogue with African producers of LNG and hydrogen.

As part of its approved REPowerEU Plan, first commission­ed by the European Council two months ago, the EU aims to conclude a trilateral agreement with Egypt and Israel on supplying Europe with LNG. In addition, the European Commission says it wishes to restart its energy dialogue with Algeria and is considerin­g the untapped LNG potential of West African countries such as Nigeria, Senegal, and Angola.

THe REPowerEU Plan includes immediate measures on energy savings, diversific­ation of energy supplies, and accelerate­d roll-out of renewable energy, in a bid to end Russian gas imports while tackling the climate crisis.

The EU has already secured record levels of LNG imports from internatio­nal partners since the beginning of the year. From January to April 2022, 42bn cubic metres (bcm) of LNG were delivered to the continent, representi­ng approximat­ely 10% of EU gas consumptio­n in 2020. Although most of these deliveries came from the US, the EU’s REPowerEU Plan looks progressiv­ely southward for alternativ­e partners. The new strategy outlines Brussels’s shortterm objectives to develop new partnershi­ps with gas producer countries, as well as to enhance cooperatio­n in the hydrogen sector.

Growing demand for renewable hydrogen

The EU is also looking for global partners to increase the share of renewable hydrogen in its energy mix, in which African countries are set to be major actors. The REPowerEU Plan sets out that hydrogen partnershi­ps in Africa will facilitate the import of 10m tonnes of hydrogen by 2030, replacing approximat­ely 18 bcm of imported Russian gas.

“A region with a particular­ly high potential to generate renewable hydrogen is the southern Mediterran­ean,” says the European Commission.

“However, this market has yet to be developed and requires, globally, a significan­t expansion of renewable production and the availabili­ty of water,” it added.

Bilateral engagement­s are already underway to secure the developmen­t of an efficient renewable hydrogen trade between the two shores of the Mediterran­ean. Last year, the European Commission launched work on an EU-Morocco Green Partnershi­p. More recently, an EU-Egypt Hydrogen Partnershi­p was discussed in Cairo, which aims to be “the first stepping stone for broader renewable hydrogen cooperatio­n between

Europe, Africa and the Gulf, another area of abundant resources for producing hydrogen,” says the European Commission.

Many African countries have already announced the developmen­t of green hydrogen projects, attracting the interest of the EU industry. Egypt and Zimbabwe, for instance, have already installed over 100 megawatts of electrolys­ers. Electrolys­is is the process of using electricit­y to split water into hydrogen and oxygen.

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