Federal Government has unveiled a strategic plan to secure significant investments for infrastructure improvements, with the goal of participating in the global hydrogen market, which is anticipated to reach $200 billion by 2030.
In a recent statement, Ambassador Nicholas Ella, the Permanent Secretary of the Ministry of Petroleum Resources, highlighted the potential of integrating hydrogen into the nation's energy framework. He emphasized that this move could play a pivotal role in achieving the objective of reducing carbon emissions by 20% within the next decade.
Vice President Kashim Shettima highlighted the importance of developing human capital in hydrogen technologies as essential for establishing a sustainable hydrogen economy in Nigeria.
This strategic initiative to promote hydrogen as an alternative energy source was underscored during the inaugural National Conference on Hydrogen, organized by the Ministry of Petroleum Resources and the Foundation for Sustainable Social Responsibility in Emerging Africa, under the theme “Building a Hydrogen Economy for Nigeria,” held on Tuesday in Abuja.
In his keynote address, delivered by Kashim Shettima, the Special Adviser to the President on Power Infrastructure, the Vice President stated that creating pilot programs across various applications is vital for developing local expertise to leverage the extensive global hydrogen market.
Shettima also noted that fostering regional partnerships with neighboring countries and across the continent regarding hydrogen adoption would enhance its domestic viability.
He referenced the 2015 Paris Agreement, which was embraced by 196 parties at COP21, as a pivotal moment for climate discussions over the past decade.
The Vice President further asserted that collaboration with development partners and nations that are more advanced in their hydrogen initiatives is crucial for facilitating knowledge transfer.
The substantial investments needed to establish the infrastructure for hydrogen transport and storage can only be effectively driven by the private sector.
”Building our vast natural gas pipelines with future hydrogen transport in mind will significantly reduce these costs and help to attract capital,” Shettima said.
The nation's energy transition plan has established an ambitious objective of achieving a net-zero economy by 2060. This plan includes a commitment to attaining 9GW of renewable electric power supply by 2030, with natural gas serving as a crucial transition fuel.
In his virtual address, the Permanent Secretary emphasized the necessity for substantial investments in infrastructure upgrades, the construction of electrolyzers for green hydrogen production, and the development of supportive policy frameworks. These measures are essential for the country to capitalize on its potential share in the expanding market.
The National Conference on Hydrogen serves as a vital forum for in-depth discussions regarding the technology, policies, financing, and infrastructure essential for establishing a strong hydrogen economy.
The global hydrogen technology market is anticipated to experience significant growth, potentially exceeding $200 billion by 2030.
As of the previous year, nations including Germany, Japan, and South Korea had collectively pledged over $70 billion towards the development of hydrogen supply chains and technologies.
For Nigeria to secure a portion of this burgeoning market, it is crucial to invest heavily in infrastructure improvements, the construction of electrolysers for green hydrogen production, and the establishment of supportive policy frameworks.
The development of infrastructure, particularly in building pipelines, hydrogen refuelling stations, and export facilities, poses a considerable challenge that requires coordinated efforts from both government and industry stakeholders.
However, these challenges also offer distinct opportunities for innovation, job creation, and economic advancement. A hydrogen-based economy in Nigeria is expected to generate over 300,000 direct and indirect jobs by 2035, encompassing various sectors such as engineering, manufacturing, and services.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, indicated that Nigeria's energy demand is projected to double by 2050. He emphasized the country's ambition to become a significant player in the global hydrogen economy.
The minister noted that utilizing the nation’s resources to produce green hydrogen could significantly contribute to emission reductions and aid in the decarbonization of sectors like transportation, power generation, and heavy industry.
Ekpo stated that Nigeria is committed to achieving net-zero emissions in accordance with the Paris Agreement. He highlighted that hydrogen, especially green hydrogen generated from the country's abundant renewable energy resources, along with blue hydrogen derived from natural gas reserves with carbon capture, offers a unique opportunity to reconcile these seemingly conflicting objectives.
Our reserves of natural gas, totaling 206 trillion cubic feet, strategically enable us to engage in blue hydrogen production. Additionally, our substantial solar energy potential, with approximately 2,000 hours of sunlight each year, lays a strong groundwork for green hydrogen development, he stated.
Earlier in his speech, Aliyu Mijinyawa, Chairman of the Foundation for Sustainable Social Responsibility in Emerging Africa, emphasized that the conference aimed to investigate the extensive possibilities of hydrogen energy within the nation.
He noted that the objective is to position Nigeria as a leader in the global hydrogen economy, utilizing this clean energy alternative to promote sustainable economic development, enhance energy security, and support climate initiatives.