Techno-Economic Analysis of Green Hydrogen Energy Production in West Africa
Abstract
The United Nations has set a global vision towards emissions reduction and green growth through the Sustainable Development Goals (SDGs). Towards the realisation of SDGS 7, 9, and 13, we focus on green hydrogen production as a potential pathway to achievement. Green hydrogen, produced via water electrolysis powered by renewable energy sources, represents a pivotal solution towards climate change mitigation. Energy access in West Africa remains a challenge, and dependency on fossil fuels persists. So, green hydrogen offers an opportunity to harness abundant solar resources, reduce carbon emissions, and foster economic development. This study evaluates the techno-economic feasibility of green hydrogen production in five West African countries: Ghana, Nigeria, Mali, Niger, and Senegal. The analyses cover the solar energy potential, hydrogen production capacities, and economic viability using the Levelised Cost of Hydrogen (LCOH) and Net Present Value (NPV). Results indicate substantial annual hydrogen production potential with LCOH values competitive with global benchmarks amidst the EU’s Carbon Border Adjustment Mechanism (CBAM). Despite this potential, several barriers exist, including high initial capital costs, policy and regulatory gaps, limited technical capacity, and water resource constraints. We recommend targeted strategies for strengthening policy frameworks, fostering international partnerships, enhancing regional infrastructure integration, and investing in capacity-building initiatives. By addressing these barriers, West Africa can be a key player in the global green hydrogen market.