Egypt-AU trade exchange rises 5.7% to $9.2bn in 2023
According to the Central Agency for Public Mobilization and Statistics (CAPMAS) trade exchange between Egypt and the African Union countries
The Maghreb region, encompassing Morocco, Algeria, Tunisia, Libya, and Mauritania, stands on the cusp of a green energy revolution. The rising importance of green hydrogen, produced through the electrolysis of water using renewable energy sources, has positioned this region as a potential leader in the global energy transition. With vast renewable energy resources and strategic geographic location, the Maghreb countries are poised to play a critical role in the burgeoning green hydrogen market.
North Africa’s potential for green hydrogen is underpinned by its abundant solar and wind resources. Morocco, a pioneer in renewable energy, already has projects like the Noor Ouarzazate Solar Complex, one of the world's largest concentrated solar power plants. By leveraging such investments, Morocco aims to be a low cost producer of green hydrogen.
Algeria, with its vast desert landscapes and significant solar irradiation, is also eyeing the green hydrogen market, despite its substantial reserves of oil and gas. The country’s National Oil Company, Sonatrach, is exploring hydrogen production, although fossil fuels are likely to dominate the country’s energy mix in the medium term. Similarly, Tunisia is exploring partnerships to leverage its renewable resources for hydrogen production. The government is actively seeking investments to develop a robust green hydrogen infrastructure.
Libya and Mauritania, though currently lagging in renewable energy development, have untapped potential that could be harnessed with the right investments and policies. Libya's extensive solar capacity and Mauritania's wind energy potential could serve as cornerstones for future hydrogen projects, provided political stability and investment climates improve.
A key driver for green hydrogen production in the Maghreb is its strategic location. Proximity to Europe, a major potential market for green hydrogen, gives North African countries a logistical advantage. The European Union aims to achieve carbon neutrality by 2050, with green hydrogen playing a crucial role. North Africa could help the EU meet its target by exporting green hydrogen to Europe via existing natural gas pipelines, repurposed for hydrogen transport.
Despite the promising outlook, several challenges remain. The high initial costs of green hydrogen production and the need for significant infrastructure investments present formidable barriers. Additionally, political instability and regulatory uncertainties in some Maghreb countries could deter potential investors. However, international support and collaboration could mitigate these challenges. The European Union and other international bodies have expressed interest in supporting North Africa’s green hydrogen initiatives through funding and technological assistance.
As the world grapples with the urgency of climate change and the search for sustainable energy solutions, delivering on North Africa's green hydrogen potential could be the tide that floats all boats. With the right mix of investments, policy frameworks, and international cooperation, the Maghreb could become a cornerstone of the global green hydrogen economy, driving both regional development and the global energy transition.
*Lonzo Cook is a journalist and writer. He spent two decades at CNN in a series of senior editorial and management roles including leading breaking news operations across Asia, the Middle East and Latin America. In addition to writing on international affairs, national security and business, he works with media companies and corporations on how to evolve and create content to stay relevant to key audiences.
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