Somaliland and Hydrogen

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HydroMaal HydroMaal

HydroMaal is the only indigenous company in the Horn of Africa working on the development of the energy transition sector in the Horn of Africa. By utilizing the country’s abundant natural resources (wind and solar), and deploying existing and future green energy production technologies, the company plans to be a major player in the global energy transition solutions, by building the necessary renewable energy value chains and infrastructure to accelerate and scale up the production of, cheap, emission-free sustainable energy systems (green hydrogen and green ammonia) as part of the decarbonization of the local, region and global economy and reduce the impact of climate change.

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The African Hydrogen Partnership Trade Association (AHP) is the only continent-wide African umbrella association solely dedicated to the development of green and natural (native) hydrogen, hydrogen based chemicals, fuel cell technology and related business opportunities in Africa.

The main OBJECTIVE of the AHP is to promote, support and accelerate the deployment of GREEN and NATURAL (NATIVE) HYDROGEN, fuel cell technology as well as to improve access to (clean) energy and mobility in Africa by aligning the industry, renewable industry and financial industry community and hereby increasing the effectiveness of the representation of this community.
 

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Making fertiliser more sustainable​

Some of the best agricultural land in the world is in Africa but it is not as productive as it could be. Some of this is political, but it is also because the land is simply under-fertilised. As a continent, Africa is shockingly under-fertilised, in comparison to other parts of the world. For instance, the fertiliser per hectare of cropland in Africa is five times less than the global average. And because the inherent demand for fertiliser is already there, fertiliser plants in those parts of Africa should be capable of being financed and built today.

These fertiliser plants can use green hydrogen as a feedstock – rather than as an energy vector; and they will be able to produce green hydrogen for hydrogen-powered vehicles and green ammonia for ammonia generators. In 2022, some 600-700 million people in Africa are still not connected to the electricity grid. Ammonia generators could help provide much needed power for lighting and cooking in people’s homes. With time and in the right locations, green ammonia can be used for shipping or maritime purposes. In addition, baseload renewable power plants, using hydrogen to balance the intermittency of renewable energy, will also make financial sense, in some regions.


Spotlight on Somaliland and Tanzania​

All of the required technologies are well established as the green hydrogen revolution gets underway, with new technologies and further improvements increasing competitiveness. The development of a new market only really starts with the development of a profitable business. This itself attracts new businesses into the sector and provides the funds for them to grow and develop. This thought was behind AHP’s delegation to Somaliland and Tanzania: to see what hydrogen-related businesses could be established in these countries today.

The delegation consisted of AHP members, which either together or separately have the capability to build green fertiliser plants in Africa and other facilities to meet existing needs in Africa. These include baseload renewable energy and waste-to-energy hydrogen plants, as well as ammonia generators. Preliminary calculations and initial discussions were promising but there is no substitute for actually seeing and going to the countries concerned.

The wind and solar maps show that Somaliland had formidable onshore wind and solar but experiencing it in person was impressive. Somaliland is a potential future hydrogen superpower, located in an increasingly key location. Yet Somaliland is a country where, due to the cost of fossil fuels, electricity is very expensive. Given this, Somaliland is an ideal country for green hydrogen to be deployed now.

Somaliland has a population of around 5 million people and is the size of England and Wales. Its immediate neighbour is Ethiopia with large fertile regions and a population of more than 110 million people. Tanzania has a population of more than 60 million people and large fertile areas in most of its political districts.

Tanzania is blessed with hydropower, geothermal energy and the potential for harvesting wind and solar energy. In central and western Tanzania there is great potential for producing solar and onshore wind power – the least expensive renewable energy sources. Additionally, there are large open (arid) spaces in these regions which allow the construction of larger renewable energy facilities while minimising the impact on the environment. Tanzania is planning a major new Port at Bagamoyo, which has significant green hydrogen implications, as does the Port of Berbera in Somaliland.

The delegation made presentations and held discussions in Somaliland with the private sector, but in Tanzania most of our discussions were with senior officials (including the Minister of Foreign Affairs) and officials in Dar es Salaam, Bagamoyo and Zanzibar. In both countries there was great interest in developing hydrogen and several opportunities were identified and will be followed up by the companies involved, supported as required by the AHP. And when one or more sectors are underway, it will be possible to turn to other sectors which will then become more connected and attractive to investors.


The East African Green Hydrogen and Fertiliser Corridor

East Africa has great potential for producing low-cost green hydrogen that will benefit its large population as well as its strong domestic and agricultural sectors. For these socio-economic reasons, the AHP is focusing on creating a Green Hydrogen and Fertiliser Corridor for East Africa:

The Hydrogen Ecosystems involved will include:

baseload renewable power supply using hydrogen
green fertiliser production
grid independent power supply
waste-to-(hydrogen) power
maritime shipping sector
mining, land transport, industry
 

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HydroMaal joins the AHP​

Hargeisa, (Somaliland), Port Louis (Mauritius) - 7th December 2022

The African Hydrogen Partnership (AHP) is delighted to welcome HydroMaal Ltd as a member.

HydroMaal is the first AHP member based in the Horn of Africa region, focused on the development of green energy infrastructure in the local area. The region, particularly, Somaliland, is amongst the areas of the world with the highest renewable energy potential. These renewable resources combined with the country’s strategic location and relatively good infrastructure (ports and roads) make the country an ideal green energy hub for the production of industrial scale hydrogen and its derivatives.

Mr. Saed Guled, Group Business Development Director, HydroMaal said,

“Joining the AHP has practical and strategic significance for Hydromaal, Somaliland and for the region. Firstly, the Horn of Africa’s renewable energy potential will receive the global exposure it deserves and this will hopefully, encourage potential investors seeking opportunities in the green energy sector in the region. Secondly, the country’s immeasurable renewable resources have the potential to significantly contribute to the global supply of green and sustainable energy which is needed to decarbonize the global economy and reduce global warming. Thirdly, with the right partners and investment, the green energy sector in the country offers a pathway to turning the country and the region into a major global provider of clean energy.”

Dr Innocent Uwuijaren, AHP Director and Chairman, stated,

“We are delighted that HydroMaal has joined the AHP. As a relatively new indigenous company, focused on developing Green Hydrogen energy projects in the Horn of Africa, we wish HydroMaal the greatest success. They are taking advantage of the huge opportunities and green energy resources in Somaliland. AHP will be helping them make a success of their efforts and look forward to working with them as they develop new local projects.”

Siggi Huegemann, AHP Secretary General, said,

“There have been tremendous developments since the first time I reached out to our Hydrogen friends in Somaliland in March 2021 when we started discussions about establishing the first Hydrogen organisation in the Horn of Africa. Flexibility is a valuable real option. In addition to its great potential for producing low-cost, price competitive green Hydrogen and its strategic location, Somaliland showcases the value of African flexibility which can greatly expedite developments, projects and value creation. The managers in 1 Somaliland have shown that the determination of a few good people can make a huge difference. I look forward to working with HydroMaal on transforming the Horn of Africa into a global Hydrogen Superpower.”

About HydroMaal

Founded at the beginning of 2022, HydroMaal (a subsidiary of Telesom Group) is a homegrown company, based in Hargeisa, Somaliland, working towards the development of renewable energy value chains and infrastructure. Telesom Group is the leading telecommunications organisation in Somaliland in terms of subscribers and revenue and operates a collective ownership model with 1500 Somalilander investors.

To learn more: https://hydromaal.com/

About the AHP

The African Hydrogen Partnership (AHP) is the only continent-wide African umbrella association dedicated to the development of green and natural hydrogen, hydrogen-based chemicals, fuel cell technology and related business opportunities in Africa. It facilitates the collaboration between governments, industry, technology and financial institutions and large end consumers of hydrogen across regions with a focus on Africa, Europe, the Middle East, Asia and the Commonwealth. The Partnership campaigns and lobbies for green African hydrogen and makes compelling political propositions for the benefit to Africa and other continents of developing green hydrogen economies. The AHP is confident that green and natural African Hydrogen will materially assist the World to decarbonise and assist in African Hydrogen becoming a major component in the energy mix. To help form the strongest possible international alliance for utilising Africa’s hydrogen potential and creating green wealth, organisations from anywhere in the world are welcome to join the AHP and become a member.
 

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How much does it cost to produce 1kg of green hydrogen?

The current cost of producing 1 kg of green hydrogen is between $5.5 and $6 — far too expensive for large scale manufacturing. For it to become commercially viable, the price must drop to around $1-2 per kg. (Feb 2023)



Mali, with shallow natural hydrogen reservoirs (not requiring electrolysis), and Somaliland, with its abundant sunshine and consistent wind flows, both have competitive advantages in the hydrogen economy. If the port of Berbera can be transformed to a maritime refuelling hub for vessels, then there is no reason why Somaliland cannot become a hydrogen superpower, Siggi Huegemann, co-initiator of the AHP believes. Somaliand could produce green hydrogen at a cost of USD 1 per kg, he estimates.

“The world cannot decarbonise without African green hydrogen,” Huegemann has stated. This vital zero-emissions energy vector can be transformative for several African nations.


Solar
Solar makes economic sense in the red, & environmental sense in the red & orange. Solar in the light green zones increases your carbon footprint (cause you'll never generate enough power to pay off the sunk carbon costs of installation

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Wind
Wind makes economic sense in the red, and environmental sense in the red and orange.

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Combination
These are the places that wind and solar make good economic AND environmental sense. Blue for wind, green for solar, dark green for both.

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Few places do wind or solar well - much less wind AND solar.
 
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Africa’s big hydrogen potential​

Africa has one of the world’s biggest potentials for producing hydrogen from low-cost renewable electricity, the IEA says. Africa has 60% of the world’s best solar resources, but only 1% of current solar generation capacity.

Wind power is also a big resource. Arid and semi‐arid areas are ideal for wind and solar, the IEA says, especially in North Africa, the Horn of Africa and Southern Africa.

By 2030, Africa could produce 80% of the new power generation it needs from solar, wind, hydropower, geothermal and other renewable energies, the IEA says.

The falling cost of both solar units and hydrogen production is predicted to further increase Africa’s hydrogen potential. In the IEA’s model, this results in Africa’s $2-per-kilogramme hydrogen being up to half the price of hydrogen from the rest of the world.

Hydrogen is currently used in industry to make fertilizer based on ammonia – a common crop nutrient – and to refine oil in North Africa and Nigeria. This hydrogen is mostly extracted from natural gas and coal and is not low-carbon, the IEA says.

But in the IEA’s model of future energy use in Africa, strong policy support and infrastructure investment triggers “rapid growth in the production and domestic uptake of low‐carbon hydrogen”.
By 2030, this leads to “significant potential” to export to demand centres in Europe.

The IEA notes that a number of low-carbon hydrogen projects are already under way or under discussion in Egypt, Mauritania, Morocco, Namibia and South Africa.
 

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