The Federal Government has outlined a plan to attract significant investments in infrastructure upgrades, with the goal of tapping into the global hydrogen economy that is forecast to hit $200bn by 2030.
The Permanent Secretary, Ministry of Petroleum Resources, Ambassador Nicholas Ella, said integrating hydrogen into the nation’s energy ecosystem can significantly contribute to achieving our target of reducing carbon emissions by 20 per cent by 2030.
This was as Vice President Kashim Shettima noted that building human capital in hydrogen technologies is critical to the viability of a hydrogen economy in the country.
The strategic call to begin the adoption of hydrogen as an alternative power source was highlighted at the first National Conference on Hydrogen organised by the Ministry of Petroleum Resources and the Foundation for Sustainable Social Responsibility in Emerging Africa themed, “Building a Hydrogen Economy for Nigeria” on Tuesday in Abuja.
In his keynote address, the Vice President, represented by the Special Adviser to the President on Power Infrastructure in the Office of the VP, Sadiq Wanka, said developing pilot programmes across different applications is a key step in building in-country expertise to tap into the vast global hydrogen economy.
Shettima said that regional collaboration with other countries in the sub-region and the continent on the adoption of hydrogen would support its viability domestically.
He recalled that the 2015 Paris Agreement, adopted by 196 parties at COP21, set the tone for climate conversations in the last decade.
The VP said that collaborations with development partners and other countries more advanced in their hydrogen journey were also important to ensure knowledge transfer.
”The investments required in building the infrastructure for hydrogen transport and storage are vast and can only be 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.
He added that the nation’s energy transition plan has set out an ambitious goal for attaining a net-zero economy by 2060, with a commitment to attaining 9GW of renewable electric power supply by 2030, and with natural gas serving as a key transition fuel.
The Permanent Secretary, in his virtual address, said significant investments must be made in upgrading infrastructure, building electrolysers for green hydrogen production, and creating enabling policy frameworks for the country to capture its share in the expanding market.
“The National Conference on Hydrogen provides a platform for critical discussions on the technology, policy, financing, and infrastructure necessary to develop a robust hydrogen economy.
“The global market for hydrogen technologies is projected to grow exponentially, reaching over $200bn by 2030.
“As of last year, countries such as Germany, Japan, and South Korea had already collectively committed over $70 billion to develop hydrogen supply chains and technology.
”For Nigeria to capture a share of this expanding market, significant investments must be made in upgrading infrastructure, building electrolysers for green hydrogen production, and creating enabling policy frameworks.
“Infrastructure development, particularly the construction of pipelines, hydrogen refuelling stations, and export facilities, remains a substantial hurdle that needs coordinated action between government and industry stakeholders.
“Nevertheless, these challenges present unique opportunities for innovation, job creation, and economic growth. A hydrogen-based economy in Nigeria is projected to create over 300,000 direct and indirect jobs by 2035, spanning engineering, manufacturing, and service sectors,” he said.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, revealed that Nigeria has an energy demand that is expected to double by 2050.
He said the country was positioning itself to become a key player in the global hydrogen economy.
The minister said that harnessing the country’s resources to produce green hydrogen, could play a significant role in reducing emissions and supporting decarbonisation of sectors such as transport, power generation, and heavy industry.
Ekpo said the country had committed to achieving net-zero emissions under the Paris Agreement.
”Hydrogen particularly green hydrogen produced using our abundant renewable energy resources, and blue hydrogen leveraging our natural gas reserves with carbon capture presents a unique opportunity to bridge these seemingly competing objectives.
”Our natural gas reserves of 206 trillion cubic feet position us perfectly for blue hydrogen production. Our significant solar potential, with about 2,000 hours of sunshine annually, provides an ideal foundation for green hydrogen,” he said.
Earlier in his address, the Chairman, Foundation for Sustainable Social Responsibility in Emerging Africa, Aliyu Mijinyawa, said the conference was to explore the vast potential of hydrogen energy in the country.
According to him, the goal is to position Nigeria at the forefront of the global hydrogen economy, leveraging this clean energy solution to drive sustainable economic growth, energy security, and climate action.
